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Compliance Calendar for April 2014
Irresponsible authority, in contestingtrivial Labour disputes..
Manager without managerial power, heldto be a workman and nature of duties..
Resignation is initiated by Employeesand Termination by Employer
Wrong Declaration of Dependency forMedical Benefit
Holiday on polling day: IT firms notexempted
Mandatory registration of digitalsignature for PF activities
TABLE OF CONTENTSEDITORS NOTE
Hello Readers,
We are happy to present the StrictlyStatutes issue for April 2014.The important
compliance dates for the month of April
2014 are listed for your convenience.
There have been several important
judgements that we would like to bring toyour notice.
The Supreme Court has held thatauthorities who act irresponsibly in
contesting trivial labour disputes will be
personally liable for the expenditureincurred on cases. The High Court of
Calcutta has held that it is the duties and not
the designation that will determine whether
the employee is a workman or a manager.In another judgement by the same court, the
ruling of the tribunal that resignation andtermination were separate and distinct was
overruled. The Madras High Court has heldthat compensation on accident under ESI is
essential than under the Employees
Compensation Act.
In other news of note, the wrong declaration
of dependency for medical benefits by anemployee is liable for criminal action. With
regard to the elections, IT firms will not be
exempted from declaring a holiday onpolling day. Employers will have to reconcile
international workers data with Foreign
Regional Registration Office (FRRO) on aperiodic basis with effect from 1st April,
2014.
We hope you find the contents of this
newsletter relevant and useful. We
welcome your suggestions and inputs forenriching content as well as your feedback.
Please write to: [email protected]
STRICTLY STATUTESA Newsletter from ADP India
APRIL
2014
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STRICTLY STATUTES A Newsletter from ADP India
Due Date Scope Due Under Mode
Compliance Calendar for April 2014
Professional Tax Remittances
10thApr 14
30thAug 13
Andhra Pradesh & Madhya Pradesh
Maharashtra, Assam & Orissa
State-wise regulations
State Wise regulations
By Challan
By Challan
Labour Welfare Fund Remittances
20thApr 14 KeralaKerala State LabourWelfare Fund
By Challan
PF
15thApr 14 Central - Remittance of Contribution EPF & MP Act 1952 By Challan
15thApr 14Central - International worker with wagesand nationality
Statement in IW1EPF & MP Act 1952
ESI
21stApr 14Main Code & Sub Codes - Remittance ofContribution
ESIC Act 1948 By Challan
15thApr 14 Gujarat Gujarat PT regulations By Challan
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20thApr 14
21stApr 14
Karnataka
West Bengal
Karnataka PT regulations
WB PT regulations
By Challan
By Challan
28thApr 14 Kerala, Maharashtra, Assam & Orissa State-wise regulations By Challan
30thAug 13 Maharashtra, Assam & Orissa State Wise regulations By Challan
30thApr 14 Karnataka State-wise regulations Annual Renewal
Employment Exchange
30thApr 14 Strength ReturnsEmployment Exchange (Compulsory Notification
of Vacancies) Act, 1959 By Return in ER - I
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STRICTLY STATUTES A Newsletter from ADP India
In a case of Haryana Diary Development Cooperative Federation Limited Vs Jagdish Lal, the Honourable Supreme
Court of India under bench comprising Honourable Justice Dr. BS. Chauhan and Honourable Justice
Mr. J Chelameswar pronounced that the attitude of Government Officials, not to take responsibilities even for petty
issues wasting public money by approaching court spending more than the total amount involved is not justified as
it is not only increases the burden of the court without any financial benefit but also unnecessary harassment to
general public at large.
Where the attitude of the government official is found to be irresponsible in dealing with small matters involving petty
amounts without just and reasonable cost, burdening concerned official with heavy cost or directing such officials to
pay personally the litigation expenses to the sufferer party is justifiable.
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Irresponsible authority, in contesting trivial Labour disputes, will be liable to
pay the expenditure personally
Important Judgements
In a case of Ranbaxy Laboratory Limited
Vs State of West Bengal and others, the
Honourable Calcutta High Court under
Honourable Justice Mr. Sambudhha
Chakrabarti pronounced that the decisive
factor for deciding an employee to be a
workman should be the nature of duties
irrespective of Managerial Designation or
handsome salary.
An employee having the designation of
District Manager, discharging the function
of sales promotion, having authority only
to recommend the leave application of
other employees and not having authority
to sanction the leave, to appoint, promote
or taking disciplinary action or exercising an independent decision making power has been held to be a workman.
It is settled principle of law that consent of employee in employment contract does not confer jurisdiction on a Courtwhich otherwise lacks jurisdiction will not confer any authority on such court to try the dispute.
Manager without managerial power, held to be a workman and nature of duties,
not designations will determine the status of workman
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STRICTLY STATUTES A Newsletter from ADP India
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In a case of G.I.S Limited Vs State of West Bengal and others, the Honourable Calcutta High Court under Honourable
Justice Mr. Harish Tandon pronounced by over ruling the direction by the tribunal that the resignation andtermination are separate and distinct terms as resignation is initiated by the employee whereas termination of
service of an employee is to be initiated by the employer.
This was pronounced in case of employee rendering his resignation and on removal from employment, contesting
that the removal was a termination.
Also advised that the Industrial Tribunal is statutorily bound to act within the precincts of reference and those points
which are incidental to the terms of reference and it cannot travel beyond the same. An order if reference is
quashable by the high court if the same is found to be made without application of mind by the appropriate
government
Resignation is initiated by Employees and Termination by Employer
In a case of Manager, Kannan Jubilee Coffee Company Vs
Kalimuthu, Rani and the Deputy Director, State Insurance
Corporation, the Honourable Madras High Court under
Honourable Justice Mr. GM Akbar Ali, on a claim petition by
the respondents before the Deputy Commissioner of Labour,
Coimbatore claiming compensation of the death of their son
employed under the appellant, where the deceased employee
was also an Insured person under ESI Act through the
appellant pronounced that the as per section 2(14) of the
Employee State Insurance Act, 1948, the corporation is liable
to pay compensation to the dependents of the deceased,
irrespective of date of registration or non-payment of
contribution by the employer at the time of accident as the
date of payment of contribution is not material.
Benefit under ESI Act is more than the under Employees Compensation Act as held by Supreme Court of India.
Compensation on accident under ESI is essential and substantial than
under Employees Compensation Act.
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STRICTLY STATUTES A Newsletter from ADP India
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News to note
Employees State Insurance Corporation through
its circular No. 13/2/Serious
Discrepancy/2011-Bft.I, instructed for a criminal
case/civil suit against employees who give a wrong
dependent declaration to extract undue benefit
and thus resulting in loss to ESI Corporation fund.
In case, it is found that the employer also
accomplice of such an offence then he should also
be prosecuted.
Wrong Declaration of Dependency for Medical Benefit
Holiday on polling day: IT firms not exempted
Election Commission of India through its circular No, 78/2014/EPS , dated 18th Mar 2014 called the attention for a
reminder on Section 135B in The Representation Of The People Act, 1951 for the declaration of Holiday with wages
on Poll day for General Elections to the Lok Sabha, 2014 & General Election to the Legislative Assemblies of Andhra
Pradesh, Odisha, Sikkim and Arunachal Pradesh and Bye Elections.
The extract of the said section is as follows
135B. 5 [Grant of paid holiday to employees on the day of poll]
Every person employed in any business, trade, industrial undertaking or any other establishment and entitled
to vote at an election to the House of the People or the Legislative Assembly of a State shall, on the day of poll,
be granted a holiday,
No deduction or abatement of the wages of any such person shall be made on account of a holiday having
been granted in accordance with sub- section (1) and if such person is employed on the basis that he would
not ordinarily receive wages for such a day, he shall nonetheless be paid for such day the wages he would have
drawn had not a holiday been granted to him on that day.
If an employer contravenes the provisions of sub- section (1) or sub- section (2), then such employer shall be
punishable with fine which may extend to five hundred rupees.
This section shall not apply to any elector whose absence may cause danger or substantial loss in respect ofthe employment in which he is engaged.
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STRICTLY STATUTES A Newsletter from ADP India
RECONCILIATION OF INTERNATIONAL WORKERS DATA WITH FOREIGN
REGIONAL REGISTRATION OFFICE ( FRRO )
Employee Provident Fund Organisation called the attention of employers through its circular No.
IWU/7(15)2011/general/23 dated, 01 April 2014, for a self- reconciliation of IWs.
It was not done in the past and it will be done for the first time by 30 June 2014 and hence forth every three
months or any other period as module agreed with Foreign Regional Registration Office.
It also directs its officials to connect with such Foreign Regional Registration Office and obtain a list of foreign
nationals employed in the establishments covered in their jurisdiction. The officials will also reconcile the FFRO
data with the IW-I return filled by the employers and ensure compliance.
EXEMPTION OF KA INDUSTRIAL EMPLOYMENT STANDING ORDERS ACT 1946
Karnataka Government exempts IT / ITES / Startups / Animation / Gaming / computer graphics / telecom / BPO
/ KPO / Other knowledge based industries from the applicability of Karnataka Industrial Employment Standing
Orders Act 1946, (Central Act of 1946) for a period of five years from the date of publication of the Karnataka
Government Notification No. LD 53 LET 2013, dated 25 Jan 2014, with a few conditions like
Each Exempted establishment to constitute Internal Committee as per Sexual Harassment of Women atWork place (Prevention, Prohibition, Redressal) Act 2013 and Rules formed there under
Each Exempted Establishment shall intimate information about the cases of disciplinary actions like
suspension, discharge, termination, demotion, dismissal etc. of its employees to the Jurisdictional Deputy
Labour Commissioner of Labour in Karnataka.
MANDATORY REGISTRATION OF DIGITAL SIGNATURE FOR PF ACTIVITIES
The Central PF Commissioner in exercise of
powers conferred on him under Para 36(7) of
EPF Scheme1952, made it mandatory by
order for registration of employers/its
authorized signatories with digital signature
(Class 2 and above), with EPFO through EPFO
circular No. Coord/40(24)2010/DPG Review
Meeting, dated 25 March 2014.
Establishments with employee strength above500 to comply with digital signature on or
before 30 April 2014 and Establishments with
employee strength between 100 and 500 to comply with digital signature on or before 30 June 2014.
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STRICTLY STATUTES A Newsletter from ADP India
CSR RULES TO BE EFFECTIVE FROM APRIL 01, 2014
The ministry of Corporate Affairs has notified Section 135 and Schedule VII of the Companies Act 2013 as well as
the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 to come into effect from
April 1, 2014 to bring every company, private limited or public limited, which either has a net worth of Rs.500 crore
or a turnover of Rs.1,000 crore or net profit of Rs. 5 crore, to spend at least 2% of its average net profit for the
immediately preceding three financial years in Corporate Social Responsibility (CSR) activities.
The CSR activities should not be undertaken in the normal course of business
Contribution to any political party is not considered to be a CSR activity
Only activities in India would be considered for computing CSR expenditure.
The activities that can be undertaken by a company to fulfil its CSR obligations include eradicating hunger,
poverty and malnutrition, promoting preventive healthcare, promoting education and promotion gender equality,setting up homes for women, orphans and the senior citizens, measures for reducing inequalities faced by
socially and economically backward groups, ensuring environmental sustainability and ecological balance,
animal welfare, protection of national heritage and art and culture, measures for the benefit of armed forces
veterans, war windows and their dependents, training to promote rural, nationally recognized. Paralympic or
Olympic sports, contribution to the prime ministers national relief fund or any other fund set up by the Central
Government for socio economic development and relief and welfare of SC, ST, OBCs, minorities and women,
contributions or funds provided to technology incubators located within academic institutions approved by the
Central Government and rural development projects.
A CSR Committee is required to formulate and monitor the CSR activities and the committee should consist ofthree directors including the independent director. The report of the Board of Directors attached to the financial
statements of the Company would also need to include an annual report on the CSR activities of the company in
the format prescribed in the CSR Rules setting out inter alia a brief outline of the CSR policy, the composition of
the CSR Committee, the average net profit for the last three financial years and the prescribed CSR expenditure.
If the company has been unable to spend the minimum required on its CSR initiatives, the reasons for not doing
so are to be specified in the Board Report.
CLARIFICATION OF DEFINITION FOR A PERSON UNDER WEST BENGAL STATETAX ON PROFESSIONS, TRADES, CALLINGS & EMPLOYMENTS ACT1979
Government of West Bengal, Directorate of Commercial Taxes & Profession Tax clarified Consequent upon the
amendment in section 2(f) of the West Bengal State Tax on Professions, Trades, Callings & Employments
Act1979, to consider every branch or office of a firm, company, corporation, or other corporate body, any society,
club or association to be separate person, on a question which has come up whether a factory or godown /
warehouse (of such entity) shall be treated as a separate person for the purpose of obtaining separate certificate
of enrolment and payment of Tax.
After careful consideration into the matter, it is now clarified that no factory or godown / warehouse of a firm,
company, corporation, or other corporate body, any society, club or association, unless it acts person for the
purpose of the Act.
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Thamarai Tech Park,S.P. Plot No. 16 to 20 & 20AThiru Vi Ka Industrial Est ate,Inner Ring Road, Guindy,Chennai - 600032.
Phone1-800-4190-237
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STRICTLY STATUTES A Newsletter from ADP India