sbi agrees to issue receipt for epfo cheques

Compliance Calendar for Feb 2014

An appeal protesting levy of interest by RPFC is not…

Abandonment cannot be presumed when…

Misuse of loan taken for construction of house would…

Sexual harassment of an employee would…

SBI agrees to issue receipt for EPFO cheques!

Women can do Night Shifts in Gujarat!

Violation of Labour Laws in Tea Plantations…

EPFO settles 28% more claims in one month!

Action plan to recover PF arrears…

TABLE OF CONTENTSEDITOR’S NOTE

Hello Readers,

We start by detailing the compliances due in the month of February.

This month's round up of important judgements include the disposal of a protest levying interest by the RPFC, and that abandonment cannot be presumed without a proper enquiry. The Delhi High Court has held that misuse of a loan taken for house construction would justify dismissal and in another landmark judgement, that sexual harassment of an employee would justify forfeiture of gratuity.

In other important news, the State Bank of India has agreed to issue receipts for EPFO cheques that were being deposited by employers in the drop boxes at bank branches.

The Gujarat High Court has held that women can do night shifts as it is a fundamental right.

A labour department survey, conducted in some tea plantations across West Bengal, has found several instances of labour acts being violated.

The EPFO has cleared 28% more claims for the month of October 2013 as compared to the earlier month. Recoveries are also being accelerated. The Employees’ Provident Fund Organisation in an internal circular to all its Regional Commissioners has asked them to draw up action plans to speed up recovery of arrears.

We hope you find the contents of this newsletter relevant and useful. We welcome your suggestions and inputs for enriching content as well as your feedback. Please write to: [email protected]

STRICTLY STATUTESA Newsletter from ADP India

FEBRUARY2014

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STRICTLY STATUTES A Newsletter from ADP India

Due Date Scope Due Under Mode

Compliance Calendar for February 2014

Professional Tax Remittances

10th Feb 14

30th Aug 13

Andhra Pradesh & Madhya Pradesh

Maharashtra, Assam & Orissa

State-wise regulations

State Wise regulations

By Challan

By Challan

Labour Welfare Fund Remittances

20th Feb 14 Kerala Kerala State Labour Welfare Fund By Challan

PF

15th Feb 14 Central - Remittance of Contribution EPF & MP Act 1952 By Challan

15th Feb 14 Central - International worker with wagesand nationality Statement in 7 I WEPF & MP Act 1952

ESI

21st Feb 14 Main Code & Sub Codes - Remittance ofContribution ESIC Act 1948 By Challan

Wages

15th Feb 14 Annual Return Payment of Wages ActBy Return inForm IV

CLRA

15th Feb 14 Annual Return by Principle Employer CLRA ActBy Return inForm XXV

15th Feb 14 Gujarat Gujarat PT regulations By Challan

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30th Aug 13 Maharashtra, Assam & Orissa State Wise regulations By Challan

20th Feb 14

21st Feb 14

Karnataka

West Bengal

Karnataka PT regulations

WB PT regulations

By Challan

By Challan

28th Feb 14 Kerala, Maharashtra, Assam & Orissa State-wise regulations By Challan

15th Feb 14 Tamil Nadu Tamil Nadu PT regulations By Challan


In a classic case of Arcot Textiles Mills Ltd Vs Regional Provident Commissioner and others, the supreme court bench comprising Honourable Justice Mr. Anil R Dave and Honourable Justice Mr. Dipak Mishra pronounced that no appeal under Section 7-I of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 is maintainable for challenging the order passed by the EPF authority, imposing only interest under Sec 7-Q of the Act.

An order passed by the EPF authority determining the EF dues towards employer and imposition of interest there-on for belated remittance is a composite order under section 7A and 7Q of the Employees’ Provident Fund and Miscellaneous Fund Act, 1952 and is appealable before the EPF appellate tribunal.

Once the statutory authority takes recourse to the measure for the computation of interest and sends a blunt order, the affected person can definitely ask for a clarification or raise objections as there can be errors with regard to the period and the calculation.

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An appeal protesting levy of interest by RPFC is not defensible beforeEPF appellate tribunal

Important Judgements

In a case of M/s O K Play India Ltd Vs Raj Kumar and another, the Punjab & Haryana High court bench comprising honourable Justice Mr. Jasbir Singh and honourable Justice Rakesh Kumar Jain pronounced that a domestic enquiry needs to be conducted by following the principles of natural justice, to provide on record that the delinquent employee was unauthorizedly absent. To conclude on the basis of presumption that the delinquent has abandoned his job on his own is untenable.

Presumption that an employee that an employee has abandoned his job on his own without conducting a proper enquiry is a violation of provisions of section 25-F of the Industrial Disputes Act, and will result in the reinstatement of the workman with full back wages and continuity of services.

Awarding lump sum compensation instead of reinstatement is not justified only on the ground that a long period has expired in litigation, if the delay is not due to any fault of the workman.

When the workman has pleaded that he remained unemployed since the date of illegal termination of his service, which has not been rebutted by the management, the workman would be entitled to back wages.

Abandonment cannot be presumed when no enquiry is held forUNAUTHORIZED absence


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In an historical case of S K Taqul Vs Cement Corporation of India, the Delhi High Court bench comprising honourable Chief Justice Mr. Muruugesan and Honourable Justice VK Jain pronounced that non-usage of loan taken for construction of house is a major misconduct justifying punishment of dismissal from service.

In the absence of documentary evidence such as receipt/bills of construction materials, The stand of the workman that, rains and floods has destroyed his construction materials purchased by him is not justified.

A flee of fact, if not taken in reply to show cause notice, memorandums and statement of claim, by the workman, is not permissible before high court or later on.

Misuse of loan taken for construction of house would justify dismissal

In a land mark case of PK Kataria Vs Chairman and Managing Director, National Fertilizers Limited, the Delhi High Court led by honourable Justice Mr. Valmiki J Mehta pronounced that gratuity can be withheld or forfeited if the employee has caused pecuniary loss to the employer by his misconduct or negligence during his service duly proved by conducting domestic enquiry.

Gratuity can be withheld if charge-sheeted employee is guilty of moral turpitude which must have been proved by conducting domestic enquiry in the course of employment of the employee with the employer. Also, it has to be noted that the sexual harassment of a female employee or questionable acts of personal morals is covered under the term “moral fortitude”.

Sexual harassment of an employee would justify forfeiture of gratuity


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News to note

Shri K.K. Jalan, Central P.F. Commissioner told press reporters

that EPFO has finally been able to resolve a major problem of

employers, covered under Employees’ P.F. & M.P. Act, 1952, with

regard to State Bank of India. Earlier, SBI was not giving receipt

of cheques/draft etc. which were being deposited by employers

by dropping the same in the drop box at bank branch. There were

some instances of delay in clearance of cheques. Damages and

interest had to be imposed by EPFO in delayed payment cases by

the employer.

This issue was taken up personally by Central P.F. Commissioner

with the Chairman, State Bank of India. SBI has now directed all

its branches to issue receipt of cheques at the counter in the branch against deposit of EPF dues. Shri K.K.

Jalan further stated that in case employer faces any problem, the Addl. Central P.F. Commissioners and

Regional P.F. Commissioners at field offices of EPFO may be contacted.

This also can be referred with EPFO Letter No. Bkg./7(1)2004/NBA/Vol.VI/16205 dated 30 .12. 2013 and SBI

Letter No. SME./L&TP/156 dated 06.12.2013

Gujarat High Court has held that women can be

employed in night shifts, and provisions in

Factories Act, 1948 which bars it is

unconstitutional. Section 66(1)(b) of the act

prohibits industrial units form employing women

form 7 pm to 6 am. The division bench of Chief

Justice Bhaskar Bhattacharya and Justice J B

Pardiwala said the section is in breach of

fundamental rights guaranteed under Article 14

(right to equality) of the constitution, so it was

invalid.

Women can do Night Shiftsin Gujarat

SBI agrees to issue receipt for EPFO cheques

A labour department survey, conducted in some

tea plantations across West Bengal , has found

several instances of labour acts being violated,

said the state labour minister, Mr. Purnendu

Bose. The department had conducted the survey

in 278 tea plantations located in the region to get

inputs from the ground.

The scenario is dismal on the front of provident

fund and gratuity. We will release the survey

report soon, said the minister.

Violation of Labour Laws


EPFO SETTLES 28% MORE CLAIMSIN ONE MONTH

Employees’ provident Fund Organisation settled 10.21 lakh claims including transfer and withdrawals of Provident Fund in October 2013, which is 28% more than such settlements in September 2013.

It said 72% of these claims were settled within 10 days while remaining 28% were settled within 30 days. Besides improving performance on claims front, the body has also reduced the number of grievances considerably.

ACTION PLAN TO RECOVER PFARREARS

The Employees’ Provident Fund Organisation in an internal circular to all its Regional Commissioners to draw up action plans to speed up recovery of arrears.

As on March 31, 2013, an outstanding of Rs. 4,157 crore was to be recovered from defaulting establishments, according to the organization. The circular has set a target for recovery and had also instructed that independent dossiers be maintained of each establishment having arrears of 1 lakh or above.

It is given to understand that there is a total of 88,730 companies did not deposit PF and allied dues with EPFO, with Tamil Nadu having the highest number of defaulting companies till Sep 2012, the highest amount was due from companies based in Delhi.

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sbi agrees to issue receipt for epfo cheques

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