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ADP labour ministry prepares mega housing scheme - Jan 2015

The Ministry intends to collaborate with PSU banks, housing finance companies, state-owned construction firms like NBCC and authorities like DDA, PUDA, HUDA to build houses at a price to be fixed by the government.

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ADP labour ministry prepares mega housing scheme - Jan 2015

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  1. JAN 2015 PAGES Hello Readers, The Compliance Calendar for January includes remittancesforPF,ESI,LabourWelfareFundand CLRA. Inimportantjudgements,theHonourablePunjab& HaryanaHighCourthasheldthatabandonmentof employmentdependsuponintentionofaworkman. The Honourable Karnataka High Court has pronouncedthatamorebeneficialgratuityscheme, over payment of gratuity act, is permissible. The HonourableUttarakhandHighCourthasopinedthat back-wagesshouldberightlydeniedintheabsence of proof for unemployment. The Honourable BombayHighCourthaspronouncedthatfullback wages on reinstatement should be paidwhen workmanprovedunemploymentduringinterregnum andwhenterminationofworkmanisnotontechnical ground.TheHonourableBombayHighCourthas ruledthatahospitalengagedinwelfareactivitiesis an'industryunderI.D.Act'. In news to note, a separate bill to regulate small factories is being drafted by labour ministry. The employees'providentfundorganization(EPFO)has constituted a five member sub-committee on constructionworkers.TheEPFAppellateTribunal has held that bifurcation of minimum wages into allowancesisnotillegal.CentralGovernmenthas releasedanotificationforamendmentinApprentice Act,1961.ESIChasreleasedbookletsforemployee & employers online. The Bonus Act has got an amendment. RBI has extended timing for RTGS transactions till 8PM. The Labour Ministry has preparedamegahousingschemetoofferaffordable houses to over 5 crore subscribers of retirement fundbodyEPFO. We hope you find the contents of this newsletter relevantanduseful.Wewelcomeyoursuggestions and inputs for enriching the content of this newsletter. Pleasewritetocontactadp@adp.com 02 Compliance Calendar for Dec 2014 Important Judgments 04 04 05 05 Abandonment of employment depends upon intention of a workman More beneficial gratuity scheme, over payment of gratuity act, is permissible Back-wagesshouldberightlydeniedinthe absenceofproofforunemployment Full back wages on reinstatement should be paid when workman proved unemployment during interregnum and when termination of workman is not on technical ground Ahospital engaged in welfare activities is an 'industry under I.D.Act. 06 News to note 07 07 08 08 09 09 09 10 Separate bill toregulatesmallfactories draftedbylabourministry EPFO panel on Construction workers Bifurcation of minimum wages into allowances-not illegal CentralGovernmentreleasednotification foramendmentinApprenticeAct,1961 ESIC releases booklets for employee & employers on line, through the below links BonusAct gets an amendment RBI extendsTiming for RTGS Transactions till 8PM. Labour Ministry prepares a mega housing scheme to offer affordable houses to over 5 crore subscribers of retirement fund body EPFO

  2. PAGE02 Compliance Calendar for the month of Jan 2015 Activity Due Under Mode DueDate Professional Tax - States - Remittances AndhraPradesh&MadhyaPradesh State wise regulations By Challan 10th Jan 15 Gujarat By Challan Gujarat PTregulations 15thJan 15 Karnataka PTregulations By Challan Karnataka 20thJan 15 West Bengal PTregulations West Bengal By Challan 21stJan 15 By Challan State wise regulations Maharashtra,Assam & Orissa 30thJan 15 Karnataka PTregulations Karnataka Online 20thJan 15 Labour Welfare Fund Remittances Kerala StateLabourWelfareFund By Challan Kerala 20thJan 15 PF Central By Challan EPF & MPAct 1952 RemittanceofContribution 15thJan 15 International worker with wages and Nationality EPF & MPAct 1952 StatementinIW1 15thJan 15 ESI Central Remittance of Contribution (Main code and Sub Codes) By Challan ESICAct 1948 21stJan 15

  3. PAGE03 Compliance Calendar for the month of Jan 2015 Activity Due Under Mode DueDate CLRACentral ReturnbyPrincipalEmployer CLRA, 1970 By Form XXV 31st Jan 15 Employment Exchange (Compulsory Notification of Vacancies)Act, 1959 By Form ER-1 & ER-2 Strength&OccupationReturn 15th Jan 15 FactoriesAct, 1948 Central AnnualReturnMedicalExamination, PressureVesselexamination, SafetyCommitteeMeeting& CanteenCommitteeMeeting FactoriesAct By Form 22 31st Jan 15 During the month Maternity BenefitAct, 1948 Return 31st Jan 15 By Form K Minimum WagesAct, 1948 Return By Form III 31st Jan 15 Payment of WagesAct, 1936 By Form IV, VI & VII Return 31st Jan 15 Tamil Nadu Indl Est (Conferment of Permanent Status)Act, 1981 Return 31st Jan 15 By Form 2 & Copy of Form 1 Tamil Nadu Labour Welfare FundAct, 1972 By FormA Particularsofcontribution 31st Jan 15 Payment of SubsistanceAllowanceAct By Form 2 Return 31st Jan 15

  4. PAGE04 • ABANDONMENTOFEMPLOYMENTDEPENDSUPONINTENTIONOFAWORKMAN • In a case of Dal Chand vs. M/s. K.B. Hydraulic Engineering Works (regd) and another, the HonourablePunjab&HaryanaHighcourtthroughHonourableJusticeMr.RajivNarainRaina pronouncedthat • Abandonment of employment by a workman is dependentuponhisintention. • Failure of the management in allowing workman for resumption ofdutiesduring conciliation proceedings would justify the claim of the workman that he has not abandonedhisjobofhisownaccord. • Reinstatement would be appropriate when the management has alleged that the workman has abandonedhisjobofhisownaccordand,assuch,it amountedtoviolationofsection2(oo)oftheIndustrial DisputesAct,1947. • Anyterminationorevenabandonmentofjobonthe part of a workman would attract section 25F of the IndustrialDisputesActandifitscompliancesnotmade, theabandonmentofjobwouldbetreatedasillegaland theworkmanwillbeentitledtoreinstatement. • Whenthelabourcourthasheldthatthemanagement has wrongly presumed that the workman has kept away from work and abandonment has been rightly grantedwhereasinsteadof10%back-wagesfullback- wagesshouldhavebeenawarded. • MOREBENEFICIALGRATUITYSCHEME,OVERPAYMENTOFGRATUITYACT,ISPERMISSIBLE • In an case of R.Balurao, s\o Late Ramachandran Shivabhatjois vs. Divisional controller, KSRTC, Mysore,andothers,thehonourableKarnatakaHigh CourtthroughHon'bleJusticeMr.RamMohanReddy pronouncedthat • Anemployeeisentitledtogratuityunderaprovisionof any other law or regulation or scheme framed thereunderifthesameismorebeneficialthanthoseas providedunderthePaymentofGratuityAct,1972. • Anemployeeisnotentitledtogratuityifheisnotableto claimthesameunderanyprovisionoflaw.

  5. PAGE05 BACK-WAGESSHOULDBERIGHTLYDENIEDINTHEABSENCEOFPROOFFORUNEMPLOYMENT • In a case of Laxmi Sugar Mills Co. Ltd. vs. presiding officer, labour court, haridwar &Anr., the Honourable Uttarakhand High Court through the verdict by the honourableJusticeMr.AlokSinghpronouncedthat • Awardingreinstatementtoaworkman,after10yearsof terminationofhisservices,seemstobetotallyunjustified. • Lumpsumcompensationisappropriateafter10yearsof termination of services of the workman instead of reinstatement. • When no material was ever produced before the labour courtbytheworkmantoshowthattheywerenotengaged gainfullyortotallyremainedidleafterterminationoftheir services till impugned award was passed, non-grating back-wagesbythelabourcourtisjustified. • FULLBACKWAGESONREINSTATEMENTSHOULDBEPAIDWHENWORKMANPROVEDUNEMPLOYMENTDURINGINTERREGNUMANDWHENTERMINATIONOFWORKMANISNOTONTECHNICALGROUND • In a case of Shashikantgangaramnarkar vs. Advance Transformers and Equipment Pvt Ltd, Mumbai and Another, the Honourable Bombay High Court through the verdict by Honourable JusticeMr.M.S.Sonak.Jpronouncedthat • Denialof50%back-wagesbythelabourcourton reinstatement of the workman without stating any reason needs modification hence the workman wouldbeentitledtofullback-wages. • When the workman, in his evidence, before the labour court stated that after termination he remained unemployed and made efforts for employmentbutcouldnotgetthesame,wouldjustify fullback-wages. • Failure of the employer to rebut the evidence of unemploymentduringinterregnumwouldjustifythe claimoftheworkmanforfullback-wages. • Labourcourterredinnotgrantingfullback-wagesto the workman on his reinstatement when the terminationwasnotononlytechnicalground.

  6. PAGE06 • Ifaworkmanstatesthatheremainedunemployedduringpendencyoftheproceedingsbeforethe labourcourt,theburdenofprooftoproveemploymentbytheworkmanshiftsupontheemployertorebut thesame. • Grantoffullwageswouldbejustifiedonreinstatementwhenthepetitioner-workmanhasservedthe employerforalongperiodwithoutanyblemishedpastrecord. • Danielofback-wages,whichweretobeawarded,wouldjustifylevyofinterestonpaymenttothe workmanconcerned. • Whenthereisdenialofback-wagesandtheterminationisheldasillegal,theHighCourt,inwritpetition, willinterfereintheaward. • AHOSPITALENGAGEDINWELFAREACTIVITIESISAN'INDUSTRYUNDERI.D.ACT. • InacaseofUnionofIndiathroughdirector&Ors.Vs.MohanP.Gore,thehonourableBombayHighCourt throughtheverdictbyHonourableJusticeMr.M.S.Sonakpronouncedthat • Aninstitutionisanindustryifityieldsprofitsbutthesameissiphonedoffforaltruisticobjectsorifit makesnoprofitbuthirestheservicesofemployeesasinlikebusiness,butthegoodsandservices, whicharetheoutputofthatinstitution,aremadeavailableatthelowornocosts,totheindigentneedy whoarepricedoutofthemarket. • If an institution is oriented on a humane mission, which is fulfilled by the men who work, not because theyarepaidwagesbutbecausetheysharethepassionforthecauseanddevicejobsatisfactionfromtheir contribution,itmaynotbecoveredbythedefinitionof'industry'asobservedinthecaseofBangaloreWater SupplyandSewerageBoardvRajappa,1978LIC467(SC)byJusticeMr.KrishnaIyer. • ThescopeandparametersofthedefinitionofStateundertheArticle12oftheConstitutionofIndiaand Industryundersection2(j)oftheIndustrialDisputesAct,1947arecompletelydifferent. • Ahospitalengagedincharitableactivitiesisalsoanindustryundersection2(j)oftheIndustrialDisputes Act1974.

  7. PAGE07 • SEPARATEBILLTOREGULATESMALLFACTORIESDRAFTEDBYLABOURMINISTRY • TheSmallFactories(RegulationofEmploymentandConditionofService)Bill,2014,whichhasbeen uploadedonthelabourministry’swebsiteforpubliccommentstillNovember10,islikelytobeintroduced inthewintersessionDecember-endthelabourministrysaidthedraftwasfinalizedafterextensive discussionsbytheworkinggroupconstitutedbyit. • Thedraftdeniesasmallfactory“asanypremisewhereinamanufacturingprocessiscarriedonand whichemployslessthan40workers”andseekstoexemptemployersfromcomplyingwith14act. (forcompletebillvisit:labourlawreporter.com) • Theemployerscanregisterandevenclosedowntheirfactoriesbyelectronicallynotifyingittothe authoritiesconcerned.Whilemandatoryregistrationofasmallfactoryistobedonewithin60daysofits commencementafterpayingtheprescribedfees,inthecaseofclosure,theowner/employerneedsto electronically notify this to the chief inspector within 15days of closing the factory. On 'Financial inclusion'.ThedraftproposesthatwagesofoverRs.1000“Shallbepaidtotheworkersbydepositing theminthebankaccountoftheworkers,electronically”.Itshallbetheresponsibleoftheemployertoget azerobalanceaccountopened.Itadds. • Onminimumwages,thedraftmandatesthatnoemployershallpaylessthanthefixedminimumwages, butproposesnopenaltyfornon-compliance,addingthatanyclaiminthismatteristobedecidedbyan authoritytobesetupbytheStateGovernment.Thedraftincludesproposalsonchildlabour,healthand safetystandards,maternitybenefits,leaveentitlement,bonus,andgratuityamongotherthings.Thebill having55sectionalsohasprovisionregardingunfairlabourpractices,serviceconditions,adjudication ofdisputes,etc. • EPFOPANELONCONSTRUCTIONWORKERS • The Employees' Provident Fund Organization (EPFO) has constituted a five member sub-committee on construction workersunderthetripartitecentralboardoftrusteestosuggest a mechanism for increasing social security coverage for workersinthesector.Thesub-committeewillbechairedbythe centralprovidentcommissioner,saidanEPFOcirculardated October15,andwillincludeonegovernmentrepresentativeto benominatedbythelaboursecretaryandanadditionalcentral PF commissioner. The employers will be represented by SSPatilandRaviWig,whiletheemployeeswillberepresented byRamenPandeyofcongress-ledINTUCandMJRaoofthe BJP - led Bhartiya Mazdoor Sangh. The tenure of the sub- committeeshallbe“AtthepleasureoftheChairman”according tothecircular.

  8. PAGE08 • BIFURCATIONOFMINIMUMWAGESINTOALLOWANCES-NOTILLEGAL • Anappealwasfiledbytheappellant,beforetheEmployees'ProvidentFundAppellateTribunalagainstthe orderdated06.07.2011,passedbytheEPFauthority,undersection7Aoftheact,assessingP.Fduesand alliedduesonallowancesalsowhichisillegal. • TheEPFAppellateTribunalobservedthattheemployerhasbifurcatedtheminimumwagesintodifferent headslikebasicwages,houserentallowance,conveyanceallowance,etc.Theemployerhasbeenpaying employees'contributiononlyonthebasic wages asprovidedunder theEmployees'ProvidentFunds and MiscellaneousProvidentAct,1952excludingallowances.TheEPFauthoritypleadedthatPFduescan never be calculated on wages lower than minimum wages. Accordingly, the EPF authority initiated proceedingundersection 7Aoftheact,takingintoconsiderationtheminimum wagesundertheminimum wagesactanddirectedtheemployertopaythecontributionsodetermined.TheEPFappellatetribunal opined that minimum wages has not been defined under the Employees' Provident Funds and MiscellaneousProvidentAct,1952.OnlybasicwagesisdefinedundertheAct.EPFauthorityhasnopower toholdwhetherminimumwagesamounttobasicwagesornot.WhileinterpretingaprovisionofanyAct,the courtonlyhastointerpretthelawandcannot legislateit.Ifaprovisionoflawismisusedandsubjectedto abuseofprocessoflaw,itisforthelegislaturetoamend,modifyorrepealit,ifdeemednecessary.Thereis nocompulsiontoholdthatthedefinitionofbasicwagesshouldbeequatedtothedefinitionofminimum wagesasdefinedundersection2(b)readalongwithsection6oftheEmployees'ProvidentFundsand MiscellaneousProvisionsAct,1952andnotonMinimumWagesAct.Hence,impugnedorderissetaside. Appealisallowed. • CENTRALGOVERNMENTRELEASEDNOTIFICATIONFORAMENDMENTINAPPRENTICEACT,1961 • Thequalification,periodofapprenticeshiptraining,holdingoftest,grantofcertificateandotherconditions relatingtotheapprenticesinoptionaltradeshallbesuchasmaybeprescribed. • TheemployermayengageapprenticesfromotherStatesforthepurposeofprovidingapprenticeship trainingtotheapprentices. • TheCentralGovernmentshallprescribethenumberofapprenticestobeengagedbytheemployerfor designatedtradeandoptionaltrade. • Several employers may join together either themselves or through an agency, approved by the ApprenticeshipAdviser,accordingtotheguidelinesissuedfromtimetotimebytheCentralGovernmentin thisbehalf,forthepurposeofprovidingapprenticeshiptrainingtotheapprenticesunderthem. • Everyemployershallmakesuitablearrangementsinhisworkplaceforimpartingacourseofpractical trainingtoeveryapprenticeengagedbyhim. • Suchofthetradeapprenticeswhohavenotundergoneinstitutionaltraininginaschoolorotherinstitution recognised bytheNationalCounciloranyotherinstitution affiliatedtoorrecognised byaBoardorState CouncilofTechnicalEducationoranyotherauthoritywhichtheCentralGovernmentmay,bynotificationin theOfficial Gazette,specifyinthisbehalf,shall, before admissionintheworkplaceforpracticaltraining, undergoacourseofbasictrainingandthecourseofbasictrainingshallbegiventothetradeapprenticesin anyinstitutehavingadequatefacilities. • Everytradeapprenticewhohascompletedtheperiodoftrainingmayappearforatesttobeconductedby the National Council or any other agency authorised by the Central Government to determine his proficiencyinthedesignatedtradeinwhichhehasundergoneapprenticeshiptraining.

  9. PAGE09 • ESICRELEASESBOOKLETSFOREMPLOYEES&EMPLOYERSONLINE,THROUGHTHEBELOWLINKS • Employer: http://esic.nic.in/CIRCULARS/ESIC%20Employers%20Booklet%20English.pdf • Employees: http://esic.nic.in/CIRCULARS/ESIC%20Employees%20Booklet%20English.pdf • BONUSACTGETSANAMENDMENT • AnnualReturns-Everyemployershallonorbeforethe1stdayofFebruaryineachyearuploadannual returnsinFormDonthewebportaloftheMinistryofLabourandEmploymentgivinginformationasto theparticularsspecifiedinrespectoftheprecedingyear,Providedthattheannualreturnsshallbefiled withinthetimelimitspecifiedinsection19oftheAct. • Everyemployeronorbeforethe1stdayofFebruaryineachyearmayfileannualreturnsintheFormDto theInspectorgivinginformationastotheparticularsspecifiedinrespectoftheprecedingyear. • Providedthatduringinspection,theinspectorshallrequiretheproductionoftheaccounts,books, registerandotherdocumentsifthesamearemaintainedinmanualformorinelectronicform,asthe casemaybe. • RBIEXTENDSTIMINGFORRTGSTRANSACTIONSTILL8PM. • With effect from 29.12.2014 RBI has extended the working hours for Weekdays/RegularDays to08.00Am to08.00PMfromexisting09.00AMto • 04.30PManditfurtherextended the workinghoursforRTGSonSaturdays/ Sundayto08.00Amto03.30PMfrom existing 09.00AMto02.00PM.

  10. PAGE10 • LABOURMINISTRYPREPARESAMEGAHOUSINGSCHEMETOOFFERAFFORDABLEHOUSESTOOVER5CRORESUBSCRIBERSOFRETIREMENTFUNDBODYEPFO • The Ministry intends to collaborate with PSU banks, housing finance companies, state-owned constructionfirmslikeNBCCandauthoritieslikeDDA,PUDA,HUDAtobuildhousesatapricetobe fixedbythegovernment. • Labour Ministry is preparing a scheme under which affordable houses will be provided to the Employees'ProvidentFundOrganisation(EPFO)subscribers,particularlythosewhoareinthelow incomebracket,"asourceintheministrysaid. • Inarecentnote,thePrimeMinister'sOfficehadaskedEPFOtopromoteaffordablehousingforits subscribersanduseitsfundsforthepurpose. • Accordingtothenote,deploymentof15percentofEPFOfundsasloanforlowcosthousingwould generateacreditflowofRs70,000croreandcancreate3.5lakhadditionallow-costhomes.TheLabour MinistryiskeenonaschemeunderwhichEPFOsubscriberscouldwithdrawtheirPFdepositstomake part-paymentofthetotalcostofthehouse. • TheMinistryalsointendstoprovidesubsidytotheEPFOsubscribersinlow-incomebrackettohelp themavailbenefitsofvariouslow-costhousingschemesofthegovernment. • Financialinstitutions,sourcessaid,wouldberopedintoprovidehousingloanatlowinterestratesunder the priority sector lending for construction of affordable houses under the scheme. Thescheme,however,willbeoptionalforEPFOsubscribersasthereisnoneedtoprovideaffordable housestothosewhoalreadyownone. • Under the housing scheme, there would be three different income categories--Low Income, Middle IncomeandHighIncome.Housesand financialincentivesunderthescheme will be offered on the basis of the incomeofasubscriber. • Thesubscriberswouldbefacilitatedto pay equated monthly instalments of their home loan through their providentfundaccount. • The source said that under the schemeEPFOmayuseitsfundsto create a corpus for providing housing loanataffordableinterestratetoits subscribers.

  11. PAGE11 web site at www.adp.in Get theADPexpertise working for you. A60 year track record that speaks for itself. ADPIndia ThamaraiTech Park, S.P. Plot No. 16 to 20 & 20A Thiru Vi Ka Industrial Estate,Inner Ring Road, Guindy, Chennai - 600 032. Phone:1-800-4190-237 Email:contactadp@adp.com

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