STRICTLY STATUTES
A Newsletter from ADP India

EDITOR’S NOTE

FEBRUARY
2014

TABLE OF CONTENTS
Pages

Hello Readers,
We st...
Page 02

STRICTLY STATUTES

A Newsletter from ADP India

Compliance Calendar for February 2014
Due Date

Scope

Due Under
...
Page 03

STRICTLY STATUTES

A Newsletter from ADP India

Important Judgements
An appeal protesting levy of interest by RPF...
Page 04

STRICTLY STATUTES

A Newsletter from ADP India

Misuse of loan taken for construction of house would justify dism...
Page 05

STRICTLY STATUTES

A Newsletter from ADP India

News to note
SBI agrees to issue receipt for EPFO cheques
Shri K....
Page 06

STRICTLY STATUTES

A Newsletter from ADP India

EPFO SETTLES 28% MORE CLAIMS
IN ONE MONTH

ACTION PLAN TO RECOVER...
Page 07

STRICTLY STATUTES

ADP Global

A Newsletter from ADP India

ADP India

With more than $11 billion in revenues and...
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SBI Agrees to issue receipt for EPFO cheques

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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.

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Transcript of "SBI Agrees to issue receipt for EPFO cheques"

  1. 1. STRICTLY STATUTES A Newsletter from ADP India EDITOR’S NOTE FEBRUARY 2014 TABLE OF CONTENTS Pages 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: contactadp@adp.com Compliance Calendar for Feb 2014 02 An appeal protesting levy of interest by RPFC is not… 03 Abandonment cannot be presumed when… 03 Misuse of loan taken for construction of house would… 04 Sexual harassment of an employee would… 04 SBI agrees to issue receipt for EPFO cheques! 05 Women can do Night Shifts in Gujarat! 05 Violation of Labour Laws in Tea Plantations… 05 EPFO settles 28% more claims in one month! Action plan to recover PF arrears… 06 06
  2. 2. Page 02 STRICTLY STATUTES A Newsletter from ADP India Compliance Calendar for February 2014 Due Date Scope Due Under Mode Professional Tax Remittances 10th Feb 14 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan 15th Feb 14 Gujarat Gujarat PT regulations By Challan 15th Feb 14 Tamil Nadu Tamil Nadu PT regulations By Challan 20th Feb 14 Karnataka Karnataka PT regulations By Challan 21st Feb 13 30th Aug 14 West Bengal Maharashtra, Assam & Orissa WB PT regulations State Wise regulations By Challan 28th Feb 13 30th Aug 14 Kerala, Maharashtra, & Orissa Orissa Maharashtra, Assam Assam & State-wise regulations State Wise regulations By Challan Kerala Kerala State Labour Welfare Fund By Challan 15th Feb 14 Central - Remittance of Contribution EPF & MP Act 1952 By Challan 15th Feb 14 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 Annual Return Payment of Wages Act By Return in Form IV Annual Return by Principle Employer CLRA Act By Return in Form XXV Labour Welfare Fund Remittances 20th Feb 14 PF ESI 21st Feb 14 Wages 15th Feb 14 CLRA 15th Feb 14
  3. 3. Page 03 STRICTLY STATUTES A Newsletter from ADP India Important Judgements An appeal protesting levy of interest by RPFC is not defensible before EPF appellate tribunal 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. Abandonment cannot be presumed when no enquiry is held for UNAUTHORIZED absence 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.
  4. 4. Page 04 STRICTLY STATUTES A Newsletter from ADP India Misuse of loan taken for construction of house would justify dismissal 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. Sexual harassment of an employee would justify forfeiture of gratuity 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”.
  5. 5. Page 05 STRICTLY STATUTES A Newsletter from ADP India News to note SBI agrees to issue receipt for EPFO cheques 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 Women can do Night Shifts in Gujarat Violation of Labour Laws A labour department survey, conducted in some 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 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. Justice Bhaskar Bhattacharya and Justice J B The scenario is dismal on the front of provident Pardiwala fund and gratuity. We will release the survey said the section is in breach of fundamental rights guaranteed under Article 14 (right to equality) of the constitution, so it was invalid. report soon, said the minister.
  6. 6. Page 06 STRICTLY STATUTES A Newsletter from ADP India EPFO SETTLES 28% MORE CLAIMS IN ONE MONTH ACTION PLAN TO RECOVER PF ARREARS 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. 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. 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. 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.
  7. 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 assist with 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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