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Employer is liable to pay esi contribution for contract workers
Employer is liable to pay esi contribution for contract workers
Employer is liable to pay esi contribution for contract workers
Employer is liable to pay esi contribution for contract workers
Employer is liable to pay esi contribution for contract workers
Employer is liable to pay esi contribution for contract workers
Employer is liable to pay esi contribution for contract workers
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Employer is liable to pay esi contribution for contract workers

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In a case (Appeal under ESI No. 2/2007, D/-2-5-2013) between Regional Director, ESI Corporation, Goa vs. Farmacia Ananta, Goa, the Bombay High Court has ruled that when the employer is unable to give …

In a case (Appeal under ESI No. 2/2007, D/-2-5-2013) between Regional Director, ESI Corporation, Goa vs. Farmacia Ananta, Goa, the Bombay High Court has ruled that when the employer is unable to give details of labour charges and cost of material, the ESI Authority could fairly determine contribution at the rate of 25% of total amount as notified vide memorandum dated 16.11.1981 by the ESI Corporation.

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  1. STRICTLY STATUTES A Newsletter from ADP India OCTOBER EDITOR’S NOTE 201 3 TABLE OF CONTENTS Pages Hello Readers, September 2013 saw that the courts across the country come up with some significant and interesting rulings. The Bombay High Court has made the employer liable to pay the ESI contribution to employees, irrespective of their engagement whether on contract basis or otherwise. India has the largest workforce employed in un-organized sector, mostly as daily wage workers and not covered by PF and ESI. This important ruling by Bombay High Court will ensure that contract workers, whether they are daily wage workers, coolies, loaders or un-loaders are now protected. Small steps such as these are in the right direction and will play a large role in mobilising the workforce movement towards organised sector. In the PF space, EPFO, has published a circular quoting a recent judgment, which states that canteen allowance will be included in the PF wage calculation and has instructed its field staff to refer to this ruling for adjudicating similar issues and for defending similar cases at EPFAT and high courts This issue covers these developments and judgments in detail, along with other interesting information in the statutory compliance space. We hope you enjoy reading this issue and find it useful. Please do share your inputs / suggestions and help us to enrich the newsletter content. You may write to us at contactadp@adp.com Regards, Editor Compliance calendar for Sep 13 (Time line for Oct 13) 02 ADP trains Entrepreneurs on Statutory Compliance… 03 EPFO Schemes excluded from implementation of direct benefit transfer… 04 Employer is liable to pay ESI contribution for contract workers … 05 Partners are not to be included for coverage under PF Act… 05 No accident compensation for normal death during employment 06
  2. Page 02 STRICTLY STATUTES A Newsletter from ADP India Compliance Calendar for October 2013 Due Date Scope Due Under Mode Professional Tax Remittances 10th Oct 13 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan 15th Oct 13 Gujarat Gujarat PT regulations By Challan 20th Oct 13 Karnataka Karnataka PT regulations By Challan 21st Oct 13 West Bengal WB PT regulations By Challan th Oct 13 30th Aug 13 Maharashtra, Assam & Orissa State-wise regulations State Wise regulations By Challan Kerala Kerala State Labour Welfare Fund By Challan 15th Oct 13 Central - Remittance of Contribution EPF & MP Act 1952 By Challan 25th Oct 13 Central - International worker with wages and nationality EPF & MP Act 1952 Statement in 7 I W Main Code & Sub Codes - Remittance of Contribution ESIC Act 1948 By Challan Labour Welfare Fund Remittances 20th Oct 13 PF ESI 21st Oct 13 Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 15th Oct 13 Form ER I Strength Returns ESIC Act 1948 By Challan Factories Act 31st Oct 13 Renewal of Factory License As submission During month Safety Committee Meeting As meeting During month Canteen Committee Meeting As meeting
  3. Page 03 STRICTLY STATUTES Flash News ADP partnered with the Micro, Small and Medium Enterprises Development Institute and trains Entrepreneurs on Statutory Compliance A Newsletter from ADP India ADP partnered with MSME DI, Chennai, a Government of India initiative and trained 100 plus entrepreneurs on Statutory Compliance, which is mandatory for every organisation. Over hundred entrepreneurs from across industries ranging from Manufacturing, IT, ITeS, Educational Institutes to Staffing Companies and Service Organisations attended this two day training program held recently at Chennai. Officials from ADP India trained the participants on various State and Central Labour Legislations that are mandatory for every organization to follow. Participants were exposed to the complex maze of various local, regional and central acts and rules that are related to employer and employee compliance, which every employer is expected to comply with. The participants benefitted from this two day session, where ADP officials shared their expertise in an interactive format and trained them on running a 100% compliant organisation.
  4. Page 04 STRICTLY STATUTES A Newsletter from ADP India Circulars Canteen allowance is now part of basic wages for PF deduction Canteen allowance, paid by the employer to his employees is considered to be part of basic wages, and is required to be taken into account while computing the provident fund (PF) contribution, the Delhi High Court has stated in a recent ruling. The EPFO has published this order in its Web site, as a reference to its field staff, for adjudicatingsimilar issues and for defendingsimilar cases at EPFAT and high courts. The court delivered its recent judgement on a petition filed by Whirlpool Of India Ltd., on July 22 against an order of Regional Provident Fund Commissioner asking the company to pay PF contribution on canteen allowance provided to its workers. The court observed that the employer is splitting wages to reduce their PF and other tax liabilities, which is an anti-worker movement and against the social security scheme. The canteen allowance is part of basic wages itself and will be considered for PF computation. However, it is to be noted that the “Food and Consistence Allowances”, which is provided by the employer will continue to be treated separately and will not be included for PF calculation. EPFO Schemes excluded from the list of schemes identified for the implementation of direct benefit transfer With reference to the Ministry of Labour letter No. Z.25025/7/2012.SS.II, dated 27 May 2013, it should be understood that the schemes of EPFO have been excluded from the list of schemes of the ministry identified for the implementation of direct benefit transfer to the beneficiaries.
  5. Page 05 STRICTLY STATUTES SIGNIFICANT RECENT JUDGMENTS EMPLOYER IS LIABLE TO PAY ESI In a case (Appeal under ESI No. 2/2007, D/-2-5-2013) CONTRIBUTION between Regional Director, ESI Corporation, Goa vs. Farmacia Ananta, Goa, the Bombay High Court has FOR CONTRACT ruled that when the employer is unable to give details of labour charges and cost of material, the ESI WORKERS A Newsletter from ADP India When the activity of loading and unloading is a regular activity in the regular course of business, under the supervision and control of the employer, the employees like coolies / hamalies employed through contractors or directly by the employer, to carry out the job, will be employees under section 2 (9) of the Employees’ State Insurance Act, 1948. The employer is liable to pay the ESI contribution, irrespective of their engagement on contract basis or otherwise, if they have to perform work of regular nature under the supervision and control of the employer. Authority could fairly determine contribution at the rate of 25% of total amount as notified vide memorandum dated 16.11.1981 by the ESI Corporation. PARTNERS ARE NOT TO BE INCLUDED IN A FIRM FOR COVERAGE UNDER PROVIDENT FUND ACT In a recent judgment (C. Misc. W.P. No. 2922/2000,D/-19-10-2012), Allahabad High Court has pronounced that partners are not to be included in a firm for coverage under Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 – Section 1(3)(b). According to this ruling that was passed in the case of M/s. Sachan Nursing Home & Anr. Vs. Reg. P.F. Commissioner, Bhavishya Nidhi Bhavan, Varanasai & Anr., the partners of an establishment will not be included in a firm for coverage under the EPF & MP Act, since the partners have different status than the employees as held by the Supreme Court. The High Court quashed the decision of EPF Authorities and the ruling further states that the partners of a firm cannot be treated as employees as per Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 – Section 2 (f), to be covered under the EPF & MP Act and hence the coverage of Nursing Home stating that it was employees in addition to 3 doctors who were partners as such.
  6. Page 06 STRICTLY STATUTES A Newsletter from ADP India NORMAL DEATH EVEN DURING THE COURSE OF EMPLOYMENT WILL NOT ATTRACT ACCIDENT COMPENSATION The Gauhati High Court, in a case (M.F.A. (WC) No. 16/2002. D/-18-12-2012) between Santi Rani Debnath and Another vs. Anil Chandra Saha and Others, has ruled that the normal death even during the course of employment will not attract accident compensation. In its ruling the court has stated that normal death by bodily ailment even in course of employment cannot attract the liability of employer under the act. Only an unlooked mishap or an untoward event, which is not expected or designed is to be covered under “accident” as per judicial pronouncement. Death caused due to illness, not consequential or connected with discharge of duty, cannot be termed as accidental death. If the claimant fails to establish that the injury suffered by him is due to accident arising out of and in the course of his employment, the employer is not liable to pay compensation under the Workmens’ / Employees’ Compensation Act - 1923. An injury under section 3(1) of the Employees’ Compensation Act is a wide term than bodily injury or actual physical hurt and it may include a disease also, when a disease is contracted as a result of passage of virus i.e. consequential result of the injury.
  7. Page 07 STRICTLY STATUTES ADP Global A Newsletter from ADP India ADP India With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. ADP India offers a wide range of payroll, statutory and HR solutions, both as managed services and on cloud. ADP partners with organisations to handle their complex, yet critical functions of payroll, statutory compliance and HR administration tasks effectively. ADP’s proven Managed and On Cloud Payroll, Statutory Compliance, Leave Management and Time & Attendance solutions are designed to address the scalable and dynamic needs of an organisation. ADP partners with small, mid-sized and large enterprises to streamline their Payroll, Compliance and HR administration processes. ADP India is an ISO 9001:2008 and ISO 27001:2005 certified and SSAE 16 Type II compliant company and serves clients from all industries across the country. For more information about ADP India or to contact a local ADP sales office, reach us at 1-800-4190-237 or visit the company's Web site at www.adp.in Get the ADP expertise working for you. A 60 year track record that speaks for itself. ADP India Thamarai Tech Park, S.P Plot No. 16 to 20 & 20A . Thiru Vi Ka Industrial Est ate, Inner Ring Road, Guindy, Chennai - 600032. Phone 1-800-4190-237 Email contactadp@adp.com

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