The Ministry intends to collaborate with PSU banks, housing finance companies, state-owned construction firms like NBCC and authorities like DDA, PUDA, HUDA to build houses at a price to be fixed by the government.

1. JAN
2015
Hello Readers,
The Compliance Calendar for January includes
remittances for PF, ESI, Labour Welfare Fund and
CLRA.
In important judgements, the Honourable Punjab &
Haryana High Court has held that abandonment of
employment depends upon intention of a workman.
The Honourable Karnataka High Court has
pronounced thata more beneficial gratuity scheme,
over payment of gratuity act, is permissible. The
Honourable Uttarakhand High Court has opined that
back-wages should berightly denied in the
absence of proof for unemployment. The
Honourable Bombay High Court has pronounced
that full back wages on reinstatement should
be paidwhen workman proved unemployment
during interregnum and when termination of
workman is not on technical ground. The
Honourable Bombay High Court has ruled that
ahospital engaged in welfare activities is an
'industryunder I.D.Act'.
In news to note, a separate bill to regulate small
factories is being drafted by labour ministry. The
employees' provident fund organization (EPFO) has
constituted a five member sub-committee on
construction workers. The EPF Appellate Tribunal
has held that bifurcation of minimum wages into
allowances is not illegal. Central Government has
released a notification for amendment in Apprentice
Act, 1961. ESIC has released booklets for employee
& employers online. The Bonus Act has got an
amendment. RBI has extended timing for RTGS
transactions till 8PM. The Labour Ministry has
prepared a mega housing scheme to offer affordable
houses to over 5 crore subscribers of retirement
fundbodyEPFO.
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
News to note
Important Judgments
Compliance Calendar for Dec 2014 02
PAGES
Abandonment of employment depends
upon intention of a workman 04
04
05
05
More beneficial gratuity scheme,
over payment of gratuity act,
is permissible
Back-wagesshould berightly denied in the
absence of proof for unemployment
Full back wages on reinstatement
should be paid when workman proved
unemployment during interregnum and
when termination of workman is not on
technical ground
A hospital engaged in welfare activities
is an 'industry under I.D. Act. 06
Separate bill to regulate small factories
drafted by labour ministry
EPFO panel on Construction workers
07
07
08
08
09
09
09
10
Bifurcation of minimum wages
into allowances-not illegal
Central Government released notification
for amendment in Apprentice Act, 1961
ESIC releases booklets for
employee & employers on line,
through the below links
Bonus Act gets an amendment
RBI extends Timing for RTGS
Transactions till 8PM.
Labour Ministry prepares a mega
housing scheme to offer affordable
houses to over 5 crore subscribers of
retirement fund body EPFO

2. PAGE 02
Compliance Calendar for the month of Jan 2015
20th Jan 15 Kerala By Challan
Labour Welfare Fund Remittances
15th Jan 15 Remittance of Contribution EPF & MP Act 1952 By Challan
15th Jan 15
International worker with
wages and Nationality EPF & MP Act 1952 Statement in IW 1
21st Jan 15
Remittance of Contribution
(Main code and Sub
Codes)
ESIC Act 1948 By Challan
ESI Central
Due Date Activity Due Under Mode
Professional Tax - States - Remittances
Andhra Pradesh & Madhya Pradesh State wise regulations
PF Central
Kerala
State Labour Welfare Fund
10th Jan 15
15th Jan 15
20th Jan 15
21st Jan 15
Gujarat
By Challan
By Challan
By Challan
By Challan
Karnataka
West Bengal
Gujarat PT regulations
30th Jan 15 By Challan
West Bengal
PT regulations
Maharashtra, Assam & Orissa State wise regulations
20th Jan 15 Karnataka PT regulationsKarnataka Online
Karnataka PT regulations

3. PAGE 03
Compliance Calendar for the month of Jan 2015
Due Date Activity Due Under Mode
31st Jan 15
CLRA Central
Return by Principal Employer CLRA, 1970 By Form XXV
15th Jan 15 Strength & Occupation Return By Form
ER-1 & ER-2
Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
31st Jan 15
During the
month
Annual Return Medical Examination,
Pressure Vessel examination,
Safety Committee Meeting &
Canteen Committee Meeting
By Form 22
Factories Act, 1948 Central
Factories Act
31st Jan 15 Return By Form K
Maternity Benefit Act, 1948
31st Jan 15 Return By Form III
Minimum Wages Act, 1948
31st Jan 15 Return
By Form IV,
VI & VII
Payment of Wages Act, 1936
31st Jan 15 Return By Form 2 &
Copy of Form 1
Tamil Nadu Indl Est (Conferment of Permanent Status) Act, 1981
31st Jan 15 Particulars of contribution By Form A
Tamil Nadu Labour Welfare Fund Act, 1972
31st Jan 15 Return By Form 2
Payment of Subsistance Allowance Act

4. PAGE 04
ABANDONMENT OF EMPLOYMENT DEPENDS UPON INTENTION OF A WORKMAN
In a case of Dal Chand vs. M/s. K.B. Hydraulic Engineering Works (regd) and another, the
Honourable Punjab & Haryana High court through Honourable Justice Mr. Rajiv Narain Raina
pronounced that
▪ Abandonment of employment by a workman is
dependentuponhis intention.
▪ Failure of the management in allowing workman for
resumption of duties during conciliation proceedings
would justify the claim of the workman that he has not
abandonedhis job of his own accord.
▪ Reinstatement would be appropriate when the
management has alleged that the workman has
abandoned his job of his own accord and, as such, it
amounted to violation of section 2(oo) of the Industrial
DisputesAct, 1947.
▪ Any termination or even abandonment of job on the
part of a workman would attract section 25F of the
Industrial Disputes Act and if its compliances not made,
the abandonment of job would be treated as illegal and
the workman will be entitledto reinstatement.
▪ When the labour court has held that the management
has wrongly presumed that the workman has kept
away from work and abandonment has been rightly
granted whereas instead of 10% back-wages full back-
wages shouldhave beenawarded.
MORE BENEFICIAL GRATUITY SCHEME, OVER PAYMENT
OF GRATUITY ACT, IS PERMISSIBLE
▪ In an case of R.Balurao, so Late Ramachandran
Shivabhatjois vs. Divisional controller, KSRTC,
Mysore, and others, the honourable Karnataka High
Court through Hon'ble Justice Mr.Ram Mohan Reddy
pronouncedthat
▪ An employee is entitled to gratuity under a provision of
any other law or regulation or scheme framed
thereunder if the same is more beneficial than those as
providedunderthe Paymentof GratuityAct, 1972.
▪ An employee is not entitled to gratuity if he is not able to
claim the sameunderany provisionof law.

5. PAGE 05
In a case of Laxmi Sugar Mills Co. Ltd. vs.
presiding officer, labour court, haridwar & Anr., the
Honourable Uttarakhand High Court through the
verdict by the honourable Justice Mr. Alok Singh
pronounced that
▪ Awarding reinstatement to a workman, after 10 years of
terminationof his services, seems to be totally unjustified.
▪ Lump sum compensation is appropriate after 10 years of
termination of services of the workman instead of
reinstatement.
▪ When no material was ever produced before the labour
court by the workman to show that they were not engaged
gainfully or totally remained idle after termination of their
services till impugned award was passed, non-grating
back-wagesby the labourcourt is justified.
FULL BACK WAGES ON REINSTATEMENT SHOULD BE PAID WHEN WORKMAN
PROVED UNEMPLOYMENT DURING INTERREGNUM AND WHEN TERMINATION
OF WORKMAN IS NOTONTECHNICAL GROUND
In a case of Shashikantgangaramnarkar vs.
Advance Transformers and Equipment Pvt Ltd,
Mumbai and Another, the Honourable Bombay
High Court through the verdict by Honourable
Justice Mr. M.S. Sonak. J pronounced that
▪ Denial of 50% back-wages by the labour court on
reinstatement of the workman without stating any
reason needs modification hence the workman
would be entitledto fullback-wages.
▪ When the workman, in his evidence, before the
labour court stated that after termination he
remained unemployed and made efforts for
employment but could not get the same, would justify
fullback-wages.
▪ Failure of the employer to rebut the evidence of
unemployment during interregnum would justify the
claim of the workman forfullback-wages.
▪ Labour court erred in not granting full back-wages to
the workman on his reinstatement when the
terminationwas noton onlytechnicalground.
BACK-WAGES SHOULD BERIGHTLY DENIED IN THE
ABSENCE OF PROOF FOR UNEMPLOYMENT

6. PAGE 06
▪ If a workman states that he remained unemployed during pendency of the proceedings before the
labour court, the burden of proof to prove employment by the workman shifts upon the employer to rebut
the same.
▪ Grant of full wages would be justified on reinstatement when the petitioner-workman has served the
employerfor a longperiodwithout anyblemishedpast record.
▪ Daniel of back-wages, which were to be awarded, would justify levy of interest on payment to the
workman concerned.
▪ When there is denial of back-wages and the termination is held as illegal, the High Court, in writ petition,
will interferein the award.
A HOSPITAL ENGAGED IN WELFARE ACTIVITIES
IS AN 'INDUSTRY UNDER I.D. ACT.
In a case of Union of India through director & Ors. Vs. Mohan P. Gore, the honourable Bombay High Court
throughtheverdictbyHonourableJusticeMr.M.S. Sonakpronouncedthat
▪ An institution is an industry if it yields profits but the same is siphoned off for altruistic objects or if it
makes no profit but hires the services of employees as in like business, but the goods and services,
which are the output of that institution, are made available at the low or no costs, to the indigent needy
who are pricedout of the market.
▪ If an institution is oriented on a humane mission, which is fulfilled by the men who work, not because
they are paid wages but because they share the passion for the cause and device job satisfaction from their
contribution, it may not be covered by the definition of 'industry' as observed in the case of Bangalore Water
SupplyandSewerageBoardvRajappa,1978LIC467(SC)byJusticeMr. KrishnaIyer.
▪ The scope and parameters of the definition of State under the Article 12 of the Constitution of India and
Industry undersection 2(j) of the IndustrialDisputesAct, 1947are completelydifferent.
▪ Ahospital engaged in charitable activities is also an industry under section 2(j) of the Industrial Disputes
Act 1974.

7. SEPARATEBILLTOREGULATESMALLFACTORIES
DRAFTEDBYLABOURMINISTRY
▪ The Small Factories (Regulation of Employment and Condition of Service) Bill, 2014, which has been
uploaded on the labour ministry’s website for public comments till November 10, is likely to be introduced
in the winter session December-end the labour ministry said the draft was finalized after extensive
discussionsby the working groupconstitutedby it.
▪ The draft denies a small factory “as any premise wherein a manufacturing process is carried on and
which employs less than 40 workers” and seeks to exempt employers from complying with 14 act.
(for completebill visit: labourlawreporter.com)
▪ The employers can register and even close down their factories by electronically notifying it to the
authorities concerned. While mandatory registration of a small factory is to be done within 60 days of its
commencement after paying the prescribed fees, in the case of closure, the owner/employer needs to
electronically notify this to the chief inspector within 15days of closing the factory. On 'Financial
inclusion'. The draft proposes that wages of over Rs. 1000 “Shall be paid to the workers by depositing
them in the bank account of the workers, electronically”. It shall be the responsible of the employer to get
a zero balanceaccountopened.It adds.
▪ On minimum wages, the draft mandates that no employer shall pay less than the fixed minimum wages,
but proposes no penalty for non-compliance, adding that any claim in this matter is to be decided by an
authority to be set up by the State Government. The draft includes proposals on child labour, health and
safety standards, maternity benefits, leave entitlement, bonus, and gratuity among other things. The bill
having 55 section also has provision regarding unfair labour practices, service conditions, adjudication
of disputes,etc.
EPFOPANELONCONSTRUCTIONWORKERS
▪ The Employees' Provident Fund Organization (EPFO) has
constituted a five member sub-committee on construction
workers under the tripartite central board of trustees to suggest
a mechanism for increasing social security coverage for
workers in the sector. The sub-committee will be chaired by the
central provident commissioner, said an EPFO circular dated
October 15, and will include one government representative to
be nominated by the labour secretary and an additional central
PF commissioner. The employers will be represented by
SS Patil and Ravi Wig, while the employees will be represented
by Ramen Pandey of congress-led INTUC and MJ Rao of the
BJP - led Bhartiya Mazdoor Sangh. The tenure of the sub-
committee shall be “At the pleasure of the Chairman” according
to the circular.
PAGE 07

8. BIFURCATIONOFMINIMUMWAGESINTOALLOWANCES-NOTILLEGAL
▪ An appeal was filed by the appellant, before the Employees' Provident Fund Appellate Tribunal against the
order dated 06.07.2011, passed by the EPF authority, under section 7A of the act, assessing P.F dues and
allied dues on allowances also which is illegal.
▪ The EPF Appellate Tribunal observed that the employer has bifurcated the minimum wages into different
heads like basic wages, house rent allowance, conveyance allowance, etc. The employer has been paying
employees' contribution only on the basic wages as provided under the Employees' Provident Funds and
Miscellaneous Provident Act, 1952 excluding allowances. The EPF authority pleaded that PF dues can
never be calculated on wages lower than minimum wages. Accordingly, the EPF authority initiated
proceeding under section 7A of the act, taking into consideration the minimum wages under the minimum
wages act and directed the employer to pay the contribution so determined. The EPF appellate tribunal
opined that minimum wages has not been defined under the Employees' Provident Funds and
Miscellaneous Provident Act, 1952. Only basic wages is defined under the Act. EPF authority has no power
to hold whether minimum wages amount to basic wages or not. While interpreting a provision of any Act, the
court only has to interpret the law and cannot legislate it. If a provision of law is misused and subjected to
abuse of process of law, it is for the legislature to amend, modify or repeal it, if deemed necessary. There is
no compulsion to hold that the definition of basic wages should be equated to the definition of minimum
wages as defined under section 2(b) read along with section 6 of the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 and not on Minimum Wages Act. Hence, impugned order is set aside.
Appeal is allowed.
CENTRALGOVERNMENTRELEASEDNOTIFICATIONFOR
AMENDMENTINAPPRENTICEACT,1961
▪ The qualification, period of apprenticeship training, holding of test, grant of certificate and other conditions
relating to the apprentices in optional trade shall be such as may be prescribed.
▪ The employer may engage apprentices from other States for the purpose of providing apprenticeship
training to the apprentices.
▪ The Central Government shall prescribe the number of apprentices to be engaged by the employer for
designated trade and optional trade.
▪ Several employers may join together either themselves or through an agency, approved by
the Apprenticeship Adviser, according to the guidelines issued from time to time by the Central
Government in this behalf, for the purpose of providing apprenticeship training to the apprentices under
them.
▪ Every employer shall make suitable arrangements in his workplace for imparting a course of practical
training to every apprentice engaged by him.
▪ Such of the trade apprentices who have not undergone institutional training in a school or other institution
recognised by the National Council or any other institution affiliated to or recognised by a Board or State
Council of Technical Education or any other authority which the Central Government may, by notification in
the Official Gazette, specify in this behalf, shall, before admission in the workplace for practical training,
undergo a course of basic training and the course of basic training shall be given to the trade apprentices in
any institute having adequate facilities.
▪ Every trade apprentice who has completed the period of training may appear for a test to be conducted by
the National Council or any other agency authorised by the Central Government to determine his
proficiency in the designated trade in which he has undergone apprenticeship training.
PAGE 08

9. ESICRELEASESBOOKLETSFOREMPLOYEES&EMPLOYERSONLINE,
THROUGHTHEBELOWLINKS
Employer:
http://esic.nic.in/CIRCULARS/ESIC%20Employers%20Booklet%20English.pd
f
Employees:
http://esic.nic.in/CIRCULARS/ESIC%20Employees%20Booklet%20English.pd
f
BONUSACTGETSANAMENDMENT
▪ Annual Returns - Every employer shall on or before the 1st day of February in each year upload annual
returns in Form D on the web portal of the Ministry of Labour and Employment giving information as to
the particulars specified in respect of the preceding year, Provided that the annual returns shall be filed
within the time limit specifiedin section 19 of theAct.
▪ Every employer on or before the 1st day of February in each year may file annual returns in the Form D to
the Inspector giving informationas to the particulars specifiedin respect of the precedingyear.
▪ Provided that during inspection, the inspector shall require the production of the accounts, books,
register and other documents if the same are maintained in manual form or in electronic form, as the
case may be.
RBIEXTENDSTIMINGFORRTGSTRANSACTIONSTILL8PM.
▪ With effect from 29.12.2014 RBI has
extended the working hours for
Weekdays / Regular Days to 08.00 Am
to 08.00 PM from existing 09.00 AM to
04.30 PM and it further extended the
working hours for RTGS on Saturdays /
Sunday to 08.00 Am to 03.30 PM from
existing 09.00AM to 02.00PM.
PAGE 09

10. LABOURMINISTRYPREPARESAMEGAHOUSINGSCHEMETOOFFER
AFFORDABLEHOUSESTOOVER5CRORESUBSCRIBERSOF
RETIREMENTFUNDBODYEPFO
▪ The Ministry intends to collaborate with PSU banks, housing finance companies, state-owned
construction firms like NBCC and authorities like DDA, PUDA, HUDA to build houses at a price to be
fixed by the government.
▪ Labour Ministry is preparing a scheme under which affordable houses will be provided to the
Employees' Provident Fund Organisation (EPFO) subscribers, particularly those who are in the low
incomebracket,"a source in the ministrysaid.
▪ In a recent note, the Prime Minister's Office had asked EPFO to promote affordable housing for its
subscribersand use its fundsforthe purpose.
▪ According to the note, deployment of 15 per cent of EPFO funds as loan for low cost housing would
generate a credit flow of Rs 70,000 crore and can create 3.5 lakh additional low-cost homes.The Labour
Ministry is keen on a scheme under which EPFO subscribers could withdraw their PF deposits to make
part-paymentof the totalcost of the house.
▪ The Ministry also intends to provide subsidy to the EPFO subscribers in low-income bracket to help
them avail benefitsof various low-cost housingschemesof the government.
▪ Financial institutions, sources said, would be roped in to provide housing loan at low interest rates under
the priority sector lending for construction of affordable houses under the scheme.
The scheme, however, will be optional for EPFO subscribers as there is no need to provide affordable
housesto those who alreadyown one.
▪ Under the housing scheme, there
would be three different income
categories--Low Income, Middle
Income and High Income. Houses and
financial incentives under the scheme
will be offered on the basis of the
incomeof a subscriber.
▪ The subscribers would be facilitated to
pay equated monthly instalments of
their home loan through their
providentfundaccount.
▪ The source said that under the
scheme EPFO may use its funds to
create a corpus for providing housing
loan at affordable interest rate to its
subscribers.
PAGE 10

11. PAGE 11
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