mandatory registration of digital signature for pf activities

5/27/2018 Mandatory Registration of Digital Signature for PF Activities

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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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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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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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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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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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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.


8/8

ADP Global

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

ADP India offers a wide range of payroll, statutory and

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effectively.

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ADP India is an ISO 9001:2008 and ISO 27001:2005

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serves clients from all industries across the country.

For more information about ADP India or to contact alocal ADP sales office, reach us at 1-800-4190-237 or

visit the company's Web site at www.adp.in

ADP India

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

[email protected]

Get the ADP expertise working for you.A 60 year track record that speaks for itself.

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