APR2015

The Compliance Calendar for April 2015 includes

remittances for PF, Labour Welfare Fund PF Central and

ESI Central.

In important judgements, the Supreme Court has held that

Civil Courts cannot decide labour disputes. In another

judgement it has ruled Termination void ab initio without

compliance of provisions of I.D. Act. The Delhi High Court

has pronounced that transfer can't be challenged under

section 2A of I.D Act. In another case, it has held that a

letter bearing correct address would be presumed to have

been served. Adjudicating another case, the Court has

ruled that abandonment of job by a workman is depending

upon his intention. The Punjab and Haryana High Court

has pronounced that termination by abolishing the post in

outsourcing the work to agencies would amount to

retrenchment. And that EPF authority can take police help

for identification of beneficiaries. The Kerala High Court

has ruled that financial difficulties can justify waiver of

damages for delayed deposit of EPF Contribution.

In news to note, EPFO opens office for big firms in a bid to

provide prompt services to big employers in the organized

sector. The EPFO has ordered the replacement of

erstwhile form No.11 with the declaration form (Form

no.11(new)) placed at annexure-1. EPFO has now

embarked upon its next phase of e-governance reforms

with a view to make its services available to its

stakeholders in an efficient, transparent and reliable

manner and at low costs. Changes in the Tamil Nadu

Labour Welfare Fund Rules, 1973 have been notified.

salient features of UAN for PF subscribers have been

notified. With effect from 1st May 2015, PF & ESI will make

remittance compulsory.

We hope you find the contents of this newsletter relevant

and useful. We welcome your suggestions and inputs for

enriching the content of this newsletter. Please write to

contactadp@adp.com.

online

Hello Readers,

Important Judgments

Compliance Calendar for Apr 2015

Compliance Calendar for May 2015

0203

PAGES

News to note

Civil Courts cannot decide labour disputes 04

A letter bearing correct address wouldbe presumed to have been served 06

Termination void ab initio withoutcompliance of provisions of I.D. Act 05Transfer can't be challenged undersection 2A of I.D Act 05

Abandonment of job by a workman isdepending upon his intention 06

PF & ESI make remittancecompulsory

online 11

Salient features of UAN for PF subscribers 11

The Tamil Nadu Labour WelfareFund Rules, 1973 10

Employees' Provident FundOrganization (EPFO) 10

Employee Provident Fund organization 09

EPFO opens office for big firms 09

Termination by abolishing the post inoutsourcing the work to agencies wouldamount to retrenchment

07

EPF authority can take police help foridentification of beneficiaries 07

Financial difficulties can justify waiver ofdamages for delayed deposit ofEPF Contribution

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PAGE 02

15th Apr 15 Remittance of Contribution EPF & MP Act 1952 By Challan

15th Apr 15International worker with wages and Nationality EPF & MP Act 1952 Statement in IW 1

PF Central

Labour Welfare Fund Remittances

20th Apr 15 Kerala By ChallanState Labour Welfare Fund Kerala

Compliance Calendar for the month of Apr 2015

21st Apr 15Remittance of Contribution(Main code and Sub Codes) ESIC Act 1948 By Challan

ESI Central

Due Date Activity Due Under Mode

Professional Tax - States - Remittances

10 Apr 15th

15th 15 Apr

20th Apr 15

21st Apr 15

Andhra Pradesh & Madhya Pradesh

Gujarat

By Challan

By Challan

By Challan &Online

By Challan

Karnataka

West Bengal

State wise regulations

Gujarat PT regulations

30th Apr 15 By Challan

West BengalPT regulations

Assam & Orissa State wise regulations

Karnataka PT regulations

30th Apr 15 Online MaharashtraMaharashtraPT Regulation

30th Apr 15 Form ERI (Strength Return)

Employment Exchange (Compulsory Notification of Vacancies) Act

15th Apr 15 Half Yearly Return

The Apprenticeship Act

15th May 15 Remittance of Contribution EPF & MP Act 1952 By Challan

15th May 15International worker with wages and Nationality EPF & MP Act 1952 Statement in IW 1

PF Central

20th May 15 Kerala By Challan

Labour Welfare Fund Remittances

State Labour Welfare Fund Kerala

Compliance Calendar for the month of May 2015

21st May 15Remittance of Contribution(Main code and Sub Codes) ESIC Act 1948 By Challan

ESI Central

Due Date Activity Due Under Mode

Professional Tax - States - Remittances

10 May 15th

15th May 15

20th May 15

21st May 15

Andhra Pradesh & Madhya Pradesh

Gujarat

By Challan

By Challan

By Challan &Online

By Challan

Karnataka

West Bengal

State wise regulations

Gujarat PT regulations

31 May 15st By Challan

West BengalPT regulations

Assam & Orissa State wise regulations

Karnataka PT regulations

31st May 15 Online MaharashtraMaharashtraPT Regulation

PAGE 03

Oshiar Prasad and others vs. The Employers in relation to Management of Sudamdih Coal Washeryof M/s. BCCL, Dhanbad, Jharkhand, the Honourable Supreme Court of India through its bench consisting Honourable Justices Mr.Fakkir Mohamed Ibrahim Kalifulla and Mr.Abhay Manohar Sapre, pronounced that

Appropriate Government is having powers to make reference under section 10 of the Industrial Disputes

act, 1947, only when an industrial dispute exists or is apprehended between the parties.

While answering the reference, the industrial tribunal/labour court has to confine its inquiry to the questions

referred since it does not have questions or/and the terms reference.

Civil Court does not have jurisdiction to entertain and try a suit involving provisions of labour laws.

Reference made by the appropriate Government in respect of workers whose services were terminated

long back prior to making of reference regarding their absorption and regularization is not sustainable since

there was no industrial dispute that existed or apprehended in relation to workmen at the time of reference.

Absorption and regularization can be claimed or/and granted only when the contract of employment

subsists and is in force inter se employee an employer.

Considering the fact that the management had offered to pay retrenchment compensation in accordance

with provisions of section 25F of the Industrial Disputes Act, 1974 before the trial court, no documents were

filed by the management showing any such compensation already paid and more than three decades have

passed, compensation in lieu of retrenchment is appropriate.

Since the reference of earlier set of workers was made to decide their absorption when they were in service

whereas reference of later set of workers has no right to claim relief of parity with claim of earlier set of workers.

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CIVIL COURTS CANNOT DECIDE LABOUR DISPUTES

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TERMINATION VOID ABINITIO WITHOUT COMPLIANCE OF PROVISIONS OF I.D. ACT

In an extraordinary case, Jasmer Singh vs. State

of Haryana & Another, the Honourable Supreme

Court of India through its bench consisting

Honourable Justices Mr. V. Gopala Gowda, and

Mr. C. Nagappan., pronounced that

Management is not entitled to seek any relief from the

court if it has not complied with the legal/mandatory

provisions of the Industrial Disputes Act, 1947 while

terminating services of a workman.

An order of termination is void ab initio if the same has

been made by the employer without compliance of

mandatory provisions of the Industrial Disputes Act, 1947.

Workman is entitled to reinstatement with full back-

wages when the order of termination is void ab initio.

If a workman has completed 240 days continuous service during the preceding 12 calendar months, his

termination without compliance of mandatory provisions of Industrial Disputes Act, 1947 is illegal making the

workman entitled to reinstatement with back-wages.

Exercises of supervisory power by High Court under article 226 and 227 in setting aside the finding of fact

recorded on facts based on the pleadings and evidence on record is not appropriate.

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TRANSFER CAN'T BE CHALLENGED UNDER SECTION 2A OF I.D ACT

In a case of Ms. Geeta Devi vs. M/s Updater Services (P) Ltd & Another, the Honourable Delhi High

Court through the verdict by the Honourable Justice Ms. Deepa Sharma, pronounced that

Section 2A of the Industrial Disputes Act, 1947 can be invoked by a workman to avail remedy before the

industrial tribunal/labour court only against his/her dismissal, discharge, retrenchment or otherwise

termination from services.

When records reveal that the workman did not join duty at the place of transfer knowing fully well that her

services are transferable as per contract of employment, her claim under section 2A of the Industrial

Disputes Act, 1947 is not maintainable.

If the employer has never issued any letter of termination of services to the workman, her transfer order

cannot be held to be order of termination of her services.

Any court cannot quash an order of transfer of services of a workman, if the management states and

proves on record that transfer of the workman was in accordance with terms and conditions of

employment contract.

Writ court can interfere with the award passed by the industrial tribunal/labour court only to correct errors of

law, procedural inconsistency or when rules of natural justice have been violated, decision is not a fair

decision being based on extraneous consideration; order is wholly arbitrary or capricious.

Writ court have been has no appellate jurisdiction to review evidence thereby taking independent

different finding.

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In a case of New Age Advertising & Printers vs.

Rajinder Kumar, the Honourable Delhi High

Court through the verdict by the Honourable

Justices Ms. Deepa Sharma pronounced that

When a party had refused to receive the summons, a

plea taken by it in writ petition that award is in violation

of principles of natural justice or that there was no

evidence before the tribunal to pass the award is

contrary to any substantive law is not substantive.

Challenging an ex-parte award after a long delay of 5

years without satisfactory explanation is neither

proper nor justified.

When a letter bearing correct address of the

addressee, containing summons, has been delivered

in ordinary course of business, it would be served

unless the contrary is proved by the addressee.

High Court is not to act as an appellate court under

article 226 of the Constitution of India.

An award can only be set aside only if it is based on no

evidence or contrary to any substantive law or

violation principles of natural justice.

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A LETTER BEARING CORRECT ADDRESS WOULD BE PRESUMEDTO HAVE BEEN SERVED

ABANDONMENT OF JOB BY A WORKMAN IS DEPENDINGUPON HIS INTENTION

In a case of the management of M/s. Central Chemist vs. its workman Deen Dayal, the Honourable Delhi High Court through the verdict by Honourable Justices Ms.Deepa Sharma pronounced that

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Abandonment of job by a workman is depending upon

his intention whereas in this case, the workman has

never intended to relinquish his job and the labour court

has rightly answered term of reference that the workman

had never intended to quit his job hence reinstatement

with back-wages was appropriate relief as awarded by

the labour court.

Reinstatement with full back-wages of the workman as

awarded by the labour court and upheld by the High Court

could not be possible since the shop, where workman was

working, has been closed because of death of the owner

as well his wife hence instead of reinstatement with full

back-wages compensation would be appropriate relief.

PAGE 06

In a case of Anita Puri vs. Industrial Tribunal & Labour Court, Union Territory Chandigarh and

others, the Honourable Punjab & Haryana High Court through the verdict by Honourable Justice

Mr.Tejinder Singh Dhindsa pronounced that

Termination of a school clerk by abolishing the post in outsourcing her work to different agencies would

amount to retrenchment and in the absence of payment of retrenchment compensation, the termination

will be illegal.

Reinstatement of a workman whose termination of service amounted to illegal retrenchment as

violation of section 25F of the industrial disputes act and, as such, the compensation in lieu thereof

would be appropriate when the post as held by the workman has been abolished as such the High Court

in writ petition upheld the award with direction to enhance the amount of compensation in lieu of

reinstatement.

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TERMINATION BY ABOLISHING THE POST IN OUTSOURCINGTHE WORK TO AGENCIES WOULD AMOUNT TO RETRENCHMENT

In a case of Regional Provident Fund Commissioner vs. Faridabad Thermal Power Station &

Another, the Honourable Punjab & Haryana High Court through the verdict by Honourable

Justice Mr. Rajiv Narain Raina pronounced that

An order passed under section 7A of the Employees' Provident Funds and Miscellaneous Provisions

Act, 1952, is not sustainable if the EPF contributions etc. have been determined without identification of

actual beneficiaries.

In case the EPF authority under section 7A of the Act passes an order, determining the EPF

contributions is to be remitted by the employer without identification of beneficiaries, it would not be

appropriate.

In case the EPF authority under section 7A of the Act while passing an order, fails to exercise the modes

prescribed by law to identify the actual beneficiaries, it would be construed that the order passed is

without application of mind and not sustainable.

While passing an order under section 7A of the Act, the EPF authority can take help of concerned police

authorities for identification of employees/actual beneficiaries to secure then the monetary benefits.

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EPF AUTHORITY CAN TAKE POLICE HELP FOR IDENTIFICATIONOF BENEFICIARIES

PAGE 07

In a case of B.P.L. Limited, Rep. by its Dy.

Gen. Manager vs. Employees' Provident

Fund Appellate Tribunal, New Delhi &

Others, the Honourable Kerala High Court

through the verdict by Honourable Justice

Mr.P.R. Ramachandra Menon pronounced

that

Important the EPF authority had virtually

denied an opportunity of hearing to the

petitioner by non-issuing of any notice of

hearing to submit the explanation for

delayed deposit of EPF contribution, while

passing an order under section 14B of the

Employees ' Prov ident Funds and

Miscellaneous Provisions Act, 1952, the

order so passed is liable to be set aside

since it has been passed in violation of

principles of natural justice.

Paragraph 32A of the EPF Scheme provides

that damages have to be realized after

considering financial difficulties and

f rus t ra t ing c i r cumstances o f the

employer/establishment by application of

judicial mind.

Adjudicatory authority has to deal with the

issue with proper application of mind since it

is not supposed to stand in the shoes of a

recovery officer.

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FINANCIAL DIFFICULTIES CAN JUSTIFY WAIVER OF DAMAGESFOR DELAYED DEPOSIT OF EPF CONTRIBUTION

PAGE 08

EPFO OPENS OFFICE FOR BIG FIRMS

EMPLOYEE PROVIDENT FUND ORGANIZATION

¡In a bid to provide prompt services to big employers

in the organized sector, retirement fund body has

opened the first Special Corporate Office (SCO) at

its regional office at Bandra in Mumbai. The first

SCO of the Employees' Provident Fund

Organization (EPFO) was inaugurated by the

labour minister Bandaru Dattatreya at Bandra, an

official statement said. EPFO has introduced the

concept of SCO with a view to provide exemplary

and prompt service to a large chunk of its

subscribers who are in employment with select big

firms covered under its purview and contributing a

significant amount as PF dues, it said.

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In exercise of powers conferred on the Central Provident Fund Commissioner under para 36(7) read along with the provisions of paras 34 and 57 of EPF scheme 1952 and para 24 of Employees' Pension Scheme, 1995, has ordered the replacement of erstwhile form No.11 with the declaration form (Form no.11(new)) placed at annexure-1

The Declaration form (Form No. 11(new)) will also replace form No. 13 in all such cases where existing member of the provident fund makes a request for transfer of his fund availing the facility of UAN.

The members who have been allotted UAN and where KYC detail have been digitally verified by the previous employer, are not required to fill separate form no.13 rest of the employees will continue to fill form-13 along with Form No.11(new)

The employees/employers can access fillable declaration form (Form No.11 (new)) on the member portal which will be pre-filled with all the relevant information already in our database.

PAGE 09

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Employees' Provident Fund Organization has now embarked upon its next phase of e-governance reforms

with a view to make its services available to its stakeholders in an efficient, transparent and reliable manner

and at low costs. EPFO has been implementing allotment of Universal Account Numbers (UAN) to its

subscribers. The Online Transfer Claim Portal (OTCP) has also been made functional.

In exercise of power conferred under para 36(7) of the Employees' Provident Funds Scheme, 1952 read

with paras 34 and 57 of Employees' Provident Fund Scheme, 1952 and para 24 of employees' pension

scheme 1995, the introduction of declaration form (Form no.11 (new)) in place of existing form no.11

(revised) is ordered with immediate effects.

The Declaration form (Form no.11 (new)) will also replace form No. 13 in all such cases where existing

member of the provident fund makes a request for transfer of his fund availing the facility of UAN.

THE TAMIL NADU LABOUR WELFARE FUND RULES, 1973Notification No.

No. SRO A-1 (a) 2015-in exercise of powers conferred by sub-section (1) of section 41 of the Labour Welfare Fund Act, 1972 (act 36 of 1972) the Government of Tamil Nadu hereby makes the following amendments to the Labour Welfare Fund Rules. 1973.

The amendments hereby made shall come into force

from the date of its publication in the Government

Gazette.

Amendments

For the expression rupees seven occurring in two places,

the expression rupees ten shall be substituted and

For the expression rupees twenty shall be substituted.

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EMPLOYEES' PROVIDENT FUND ORGANIZATION (EPFO)

PAGE 10

SALIENT FEATURES OF UAN FOR PF SUBSCRIBERS

Central Provident Fund Organization has allotted

Universal Accounts Number to the subscribers of

the provident fund. This unique number will be

portable throughout the working career of

employees.

No New PF accounts will be allotted on changing of

job by the subscriber.

After getting UAN, A PF Subscriber will retain it through

his work life, it won't change in a new assignment.

On changing a job, he/she'd get a member IF that will

be linked to UAN.

Once an employee is allotted the UAN, he/she is

required to provide it to the new employer each time

he/she changes jobs.

The new employer will link new allotted member ID to

UAN.

This will help smoothen the process of filing of PF

transfer claims on changing jobs.

Employees would also be given personalized log-in.

Employees need to activate their UANs on the EPFO

site to download UAN card, view update PF account,

File and view transfer claims, update KYC information.

UAN will enable subscribers to consolidate previous accounts. Many accounts are inoperative. These are

accounts where there have been no contribution for the three years and they earn no interest. Transfer of an

employee from one place to another is an incident of service.

In one case Karnataka high court has held that an office bearer of a union is first an employee then an official of

the union hence it is not open to the office-bearing of the union to contend that they are not liable to be

transferred on the ground that they are to stall transfer. The Bombay High Court has held that transfer, on the

ground of mala fide that the employee is president of the union and also carrying on union activities for the last 10

years, should not have been stalled. Transfer should also not have been stalled because of mala fide when, all

along a decade the management has been working at a place for the last 20 years. There is no immunity to an

office-bearer (President of Union here) from avoiding transfer under the Industrial Disputes Act.

Over the past year, we have seen several forward looking change initiatives taken up by Employee

Provident Fund Organization. In its endeavour to improve the ease of doing business and bring overall

efficiencies, internet/online based processes are increasingly encouraged.

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PF & ESI MAKE REMITTANCE COMPULSORYONLINE

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It is brought to your attention that with effect from 1st May 2015, statutory remittances for PF & ESI can only

be made through the internet banking mode.

You may try making payments through internet banking from this month itself to ensure you are aware of the

process before the deadline date above.

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