ADP India the payroll experts presents strictly statutes along with the compliance management calendar. On the instructions by the Labor Ministry to provide permanent PF account number to its 50 million members in a time bound manner, the EPFO had asked its field staff to clean up records to issue universal account numbers soon to its subscribers. Read More at: http://www.adp.in/resources.aspx

1. Compliance Calendar for May 2014
Managing Director, who is not managing
the affairs of the company cannot..
Legal Assistance holding power of
Attorney need not be a workmen..
Termination of Employment justified..
Employer, not the court to decide as to
where an employee should be posted..
Owner of vehicle has to ensure his driver
to possess valid license..
IT Companies in Karnataka to remain
exempt from labour laws..
In Six years, shortage of welders will
raise to 22 lakh..
ESIC day celebrated across country and
empanels…
EPFO may be allowed to use
SARFA ESI Act to recover dues..
TABLE OF CONTENTSEDITOR’S NOTE
Hello Readers,
Professional Tax, ESI and PF are some of the
compliance dues that need to be addressed
in the month of May 2014 as part of the
compliance calendar.
There have been several important
judgments this month. The Kerala High Court
has held that a Managing Director cannot be
prosecuted for violation of the ESI Act if he is
not managing the affairs of the company. The
Delhi High Court has pronounced that the
legal assistant holding Power of Attorney
need not be a ‘workman’ as determined
under the Industrial Disputes Act. In another
ruling by the same court, the termination of
an employee’s services was upheld as he
had not provided sufficient notice before
proceeding on leave. The Delhi High Court
has also held in another case that the
employer and not the court shall determine
where the employee is to be posted. The
Himachal Pradesh High Court has held that
the owner of a vehicle has to ensure that the
driver’s license is valid.
In other important news, IT companies in
Karnataka will continue to be exempted from
labour laws. The welding industry is expected
to have a serious shortfall of welders by 2020
– as many as 22 lakhs. ESIC day has been
celebrated across the country by expanding
the number of private hospitals providing
cashless treatment. An employer aggrieved
by an order of the Chief Inspector of
Factories/Director, Industrial Health and
Safety can file an appeal under the
competent appellate authority. The Labour
ministry has instructed the EPFO to provide a
permanent account number, in a time-bound
manner to the 50 million enrolled members.
In another development, the ministry wants
the EPFO to be able to recover dues by
defaulting companies under the SARFAESI
Act
STRICTLY STATUTES
A Newsletter from ADP India
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2014
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2. STRICTLY STATUTES A Newsletter from ADP India
Due Date Scope Due Under Mode
Compliance Calendar for May 2014
Professional Tax Remittances
10th
May 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
15th
May 14 Punjab Punjab Labour Welfare
Fund
By Challan
PF
15th
May 14 Central - Remittance of Contribution EPF & MP Act 1952 By Challan
15th
May 14
Central - International worker with wages
and nationality
Statement in 7 IFEPF & MP Act 1952
ESI
21st
May 14
Main Code & Sub Codes - Remittance of
Contribution
ESIC Act 1948 By Challan
15th
May 14 Gujarat Gujarat PT regulations By Challan
Page 02
20th
May 14
21st
May 14
Karnataka
West Bengal
Karnataka PT regulations
WB PT regulations
By Challan
By Challan
31th
May 14 Maharashtra, Assam & Orissa State-wise regulations By Challan
15th
May 14 Chandigarh Punjab Labour Welfare
Fund
By Challan
20th
May 14 Kerala Kerala Labour
Welfare Fund
By Challan

3. STRICTLY STATUTES A Newsletter from ADP India
In a case of Biju Ramesh Vs Employees’ State Insurance Corporation the Kerala High Court Honourable Justice Mr.
A, Hariprasad pronounced that the petitioner-Managing Director of the company and owner of was not person
responsible for supervision and control of the company and there were no averment in the complain that the
petitioner was in charge and responsible to the company for the conduct of business. Hence, no prosecution under
section 80(a) of the act will lie against the petitioner being the Managing Director.
Page 03
Managing Director, who is not managing the affairs of the company cannot
be prosecuted for violation of ESI Act
Important Judgements
In a case of Bhim Sain Vs The Government of NCT of Delhi through its
Secretary (Labour) and others, the Delhi High Court Honourable
Justice Mr. V. Kameswar Rao pronounced that the legal assistant
worked for Delhi Power Company Ltd, who was given with the Power
of Attorney to defend and prosecute the cases for and against the
company and was appointing the advocates by signing the
‘Vakalathnamas’ while engaging advocates for and on behalf of the
company has been held not to be a ‘workman’ under section 2(s) of the
Industrial Disputes Act. The case was initially rejected by tribunal
holding that the petitioner-Legal Assistant- was a professional, hence, being a professional, cannot be termed as
‘workman’ within the meaning of section 2(s) of the Industrial Dispute Act.
Legal Assistance holding power of Attorney need not be a workmen
In another case of Vinod Kumar Taneja Vs M/s Indian
Overseas Bank and another, the same Delhi High Court
Honourable Justice Mr. V. Kameswar Rao pronounced
that the termination from the services of an employee
is justified in view of his long absence from duty as he
went abroad without permission and submitted leave
application only 2 days before leaving for abroad as
against the Bank’s Rules of submitting leave
application one month in advance. The terminated
employee’s acknowledgement of receipt of printed
form towards staff’s PF contribution which proves
receipt of termination letter as the same was also sent
to him to the same address.
Termination of Employment justified on intimation before two days of
leaving abroad for long period.

4. STRICTLY STATUTES A Newsletter from ADP India
Page 04
In one another case of M/s North Delhi Power Ltd now Tata
Delhi Power Distribution Ltd Vs Tilak Raj the same Delhi
High Court Honourable Justice Mr. V. Kameswar Rao
pronounced that the transfer of an employee holding
transferable employment should not have been set aside
by the Industrial Tribunal merely that as per order of the
Management it could not be beyond 15 KMs form the
residence of the employee.
While transferring an employee form one place to another,
it is for employer to decide as to where the services can be
utilized properly. Hence, the court or the Industrial
tribunals shall not override the decision of the employer and substitute the decision of the employer by their own
decisions.
Employer, not the court to decide as to where an employee should
be posted
In a case of Oriental Insurance Company Vs Smt. Deepa and others the
Himachal Pradesh High Court Honourable Justice Mr. Sanjay Karol on an
appeal by the Insurance company challenging the award of compensation to
the deceased employee in a road accident by the Compensation
Commissioner, it was pronounced that owner of vehicle is expected only to
see driving license of the driver at the time of providing employment and not
to get the same verified from Licensing Authority.
It was also ordered that the insurer to discharge the burden not only to prove
ingenuineness of the driving license but also breach of policy by the employer.
Hence, insurer is liable to pay compensation with interest.
Owner of vehicle has to ensure his driver to possess valid license and
not to verify form Licensing Authority

5. STRICTLY STATUTES A Newsletter from ADP India
Page 05
News to note
Information Technology firms and other
knowledge- based industries across Karnataka will
be exempted from labour laws for an additional five
years, state IT, BT, and science & Technology
minister S. R . Patil Said.
“The Knowledge-based sector will be considered
essential services and barred from strikes and
shutdowns from April. They will also be exempted
from complying with working hours regulations as
stipulated in the Karnataka Industrial Employment Rules, 1946 for another five years”, Patil told reporters
in Bangalore.
The clause for protection of women employees and prevention of sexual harassment at workplace in the
order will, however, be applicable.
IT Companies in Karnataka to remain exempt from labour laws:
In Six years, shortage of welders will raise to 22 lakh
With consumption of steel growing steadily, the welding industry is expected to face a shortage of 22 lakhs qualified
welders in the next six years.
Even at the current per capital steel consumption of 50Kg, there is a shortage of about 1.5 lakh welders. The
world’s average per capita steel consumption is 3.5 Kg.
ESIC day celebrated across country and empanels private
hospitals to extend cashless treatment
Employees’ State Insurance Corporation (ESIC) is a pioneer
social security Organisation under the control of
Ministry of Labour & Employment. Every year the ESIC Day
is celebrated on February 24th in all the establishments
across the country. On this day in the year 1952, the then
Prime Minister Pandit Jawaharlal Nehru inaugurated the
ESIC scheme at Kanpur.
To celebrate above, the ESIC has empanelled few private
hospitals to extend cashless and super specialty treatment
to its 1,53,000 plus insured persons and their families.

6. Page 06
STRICTLY STATUTES A Newsletter from ADP India
COMPETENT APPELLATE AUTHORITY FOR EMPLOYER AGGRIEVED BY AN
ORDER OF THE CHIEF INSPECTOR OF FACTORIES/DIRECTOR,
INDUSTRIAL HEALTH AND SAFETY
Under section 107 of the Factories Cat, 1948, the appropriate state government will be the Competent appellate
authority for employer to file an appeal against any order passed by the Chief Inspector of Factories/Director,
Industrial Health and Safety. An aggrieved employer or Manager or person, who has been served with an order in
writing may within 30 days of receipt of such orders can file an appeal against such an order to the State
Government.
EPFO FOR UNIVERSAL ACCOUNT NUMBER SOON
On the instructions by the Labour Ministry to provide permanent
PF account number to its 50 million members in a time bound
manner, the EPFO had asked its field staff to clean up records to
issue universal account numbers soon to its subscribers. The
account number will help those workers in the organised sector
workers who frequently change jobs. It will help subscribers to
avoid Filing claims transfer of PF accounts on change of job.
EPFO MAY BE ALLOWED TO USE SARFA ESI ACT TO RECOVER DUES
With the economic slowdown resulting in raising corporate defaults,
including that for PF dues, the labour ministry wants to enable
EPFO to use Sarfa Esi to recover its dues from defaulting
companies.
Although EPFO’s outstanding dues of Rs. 4093 crores are a small
fraction of its Rs. 6.32 lakh crores corpus, their faster recovery
could help the country’s largest retirement fund to offer higher
returns to its subscribers.
Since “The Securitisation and Reconstruction of Financial Assets
and Enforcement of Securities Act of 2002” now allows only banks to
recover loans from defaulters, sources said the labour ministry will have to seek finance ministry’s help to bring
in necessary amendments to the Sarfa Esi.

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STRICTLY STATUTES A Newsletter from ADP India