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Labour Laws

The Minimum Wages Act is to be amended with plans to set a national floor for minimum wages for workers across professions. The Centre is to amend labour laws - said the labour and employment minister to parliament on 16th July, 2014.

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Labour Laws

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  1. SEP 2014 PAGES ComplianceCalendarforSep201402 ImportantJudgments Contractorscanseekvoluntarycoverage03 Anydirectorofacompany,not03 prosecutedunderminimumwagesact. Merelyworkingfor240dayscannotbe thesolegroundforregularization.04 Newstonote Labourlawstobereviewed05 Minimumwagesacttobeamended05 Centretoamendlabourlaws05 Apprenticeship:opensmoreavenues05 Haryanaalsotoamendlabourlawsin05 HelloReaders, TheComplianceCalendarforSeptemberincludes remittancesforPF,ESIandLabourWelfare InImportantjudgements,theHonourableGujarat HighcourthasheldthatContractorscanseek voluntarycoveragewhennotcoverableunderPF Act.TheHonourableHimachalPradeshHighCourt hasheldthatanyDirectorofacompany,not responsibleforitsaffairscan'tbeprosecutedunder MinimumwagesAct.TheHonourableJharkhand HighCourthaspronouncedthatmerelyworkingfor 240dayscannotbethesolegroundfor regularization. whennotcoverableunderpfact responsibleforitsaffairscan'tbe InNewstoNote,theLabourministryhasapproveda newschemeforinspection Thecountry'sLabourLawsaretobereviewed;the MinimumWagesActistobeamendedwithplanstosetanationalfloorforminimumwagesforworkersacrossprofessions.TheCentreistoamendlabourlaws-saidthelabourandemploymentministertoparliamenton16thJuly,2014.Apprenticeship:PlansaretobringBA,B.Com,andBScgraduatesundertheacttoenhancetheirskillsandemployabilitytoopenmoreavenuesforyouth.HaryanaislikelytoamendLabourLawsinRajasthan'sfootstepstotheIndustrialDisputesActandtheFactoriesAct foryouth rajasthan'sfootsteps Wehopeyoufindthecontentsofthisnewsletter relevantanduseful.Wewelcomeyoursuggestionsandinputsforenrichingthecontentofthisnewsletter.Pleasewritetocontactadp@adp.com

  2. PAGE02 ComplianceCalendarforthemonthofSep2014 DueDate Activity DueUnder Mode ProfessionalTaxStatusRemittances 10thSep14 AndhraPradesh&MadhyaPradesh StateWiseregulations ByChallan 15thSep14 Gujarat GujaratPTregulations ByChallan 15thSep14 TamilNadu TamilNaduPTregulations ByChallan 20thSep14 Karnataka KarnatakaPTregulations ByChallan 21stSep14 Westbengal Westbengal PTregulations ByChallan 30thSep14 Maharashtra,Assam&Orissa StateWiseregulations ByChallan 30thSep14 Karnataka KarnatakaPTregulations Online 30thSep14 Pudhucheri PudhucheriPTregulations ByChallan LabourWelfareFundRemittances 20thSep14 Kerala Kerala StateLabourWelfareFund ByChallan PFCentral 15thSep14 RemittanceofContribution EPF&MPAct1952 ByChallan 15thSep14 Internationalworkerwithwagesandnationality EPF&MPAct1952 StatementinIW1 ESICentral 21stSep14 RemittanceofContribution (MaincodeandSubCodes) ESICAct1948 ByChallan EmploymentExchange(CompulsoryNotificationofVacancies)Act,1959 20thSep14 Occupation ReturnForm ER2

  3. PAGE03 CONTRACTORSCANSEEKVOLUNTARYCOVERAGEWHENNOTCOVERABLEUNDERPFACT. InacaseofM/s.K.M.SarmahElectricalsandOthersvs.IndianoilCorporationandothers,the honourableGujaratHighCourtthroughtheverdictbyhonourablejusticesMr.HarishikeshRoy pronouncedthat ¡TheEmployeesofcontractorscanbeassuredofthebenefitsoftheemployees'providentfundsand MiscellaneousprovisionsAct,1952ifthecontractorsareinterestedtoworkforIndianoilcorporation,they mayapplyforallotmentofPFcodenumberbyinvokingsection1(4)oftheActisabeneficialpieceof legislationanditsbenefitsshouldreachallemployees. ¡Themainobjectoftheemployees'providentfundsandmiscellaneousprovisionsact,1952,istoencourage thehabitofregularsavingbytheemployees. ¡Theprincipalemployermayrecovertheemployee'scontributionfromthecontractorundersection8Aofthe employees'providentfundsandmiscellaneousprovisionsAct,1952. ¡Whenthereisnoemployeeemployedbythecontractor,hecansubmitnilreturntotheEPFauthority. ANYDIRECTOROFACOMPANY,NOTRESPONSIBLEFORITSAFFAIRS CAN'TBEPROSECUTEDUNDERMINIMUMWAGESACT. InanextraordinarycaseDeputyManager,M/s.BharatHeavyElectrical Ltdvs.StateofH.P.andAnother,thehonourableHimachalPradesh HighCourtthroughhonourablejusticeMr.RajivSharmapronounced thatthe ¡Acriminal,complaint,filedbeforethechiefjudicialmagistrate,underthe provisionsoftheminimumwagesAct,1948,againstanyoftheDirectors, managersorsecretariesorsuchotherofficialofthecompany,without arraigningthecompanyisnotmaintainableasperrequirementofsection 22CoftheAct. ¡Acriminalcomplaint,filedbeforethejudicialmagistrate,underthe provisionsoftheminimumwagesAct,1948,againstanyofthedirectors, managersorsecretariesorsuchotherofficialofthecompany,isnot maintainableiftheaccusedisnotin-charge,responsibletothecompanyfor itsbusiness. ¡Adirectorofthecompanycannotbeprosecuted,onaccountofhisbeing director,ifheisnotinchargeorresponsibletothecompanyforitsday- todayaffairs. ¡Apersonevennotholdinganyofficeordesignationinacompanymaybe liabletobeprosecutedifhesatisfiesthemainrequirementofbeingin- chargeofandresponsibleofconductofbusinessofthecompanyatthe relevanttime.

  4. PAGE04 MERELYWORKINGFOR240DAYSCANNOTBETHESOLEGROUNDFORREGULARIZATION. InacaseoftheirWorkmen,BiharCollieryKamgarunionvs.Bharatcokingcoalltd.&Another,the honourableJharkhandHighCourtthroughitsbenchcomprisinghonourablejustices Mr.R.BanumathiandMr.ShreeChandrashekharpronouncedthat ¡Adverseinferenceagainstthemanagementfornon-productionofattendanceregisterisnotjustifiedinthe absenceofanylegalorderpassedbytheindustrialtribunalinthisrespect. ¡Withouttherebeingemployeeemployerrelationship,demandofregularizationbytheworkmenisnot justified.erelyworkingof240days"inacalendaryearscannotbethesolegroundforregularization. ¡Non-complianceoftheprovisionsofcontractlabour(RegulationandAbolition)Act,1970wouldnotresultin regularization,ratheritwouldresultinprosecutionundersection23/24oftheAct. ¡Wages/salarypayment,controlandsupervisionarethemaindecidingtestsiftheworkmenareof contractor'semployeesorofprincipalemployer'semployees. ¡Merecontrolandsupervisionofthecontractor'semployeesbytheprincipalemployerwillnotmakethem employeesoftheprincipalemployerbecausewhenthecontractisforsupplyoflabourwill,workunderthe controlandsupervisionoftheprincipalemployer. ¡Ifrighttoregulatetheemploymentandultimatecontrollieswiththecontractor,thecontractlabourcannot claimtobeemployedbytheprincipalemployer ¡Intheabsenceofanylegalorder,passedbythelabourcourt/industrialtribunalforproductionofattendance recordbythemanagement,drawingadverseinferencebythetribunalfornon-productionofattendance registerbythemanagement,iserroneous. LABOURMINISTRYOKAYSNEWSCHEMEFORINSPECTION ¡Theunionlabourministryhasapprovedamoreliberal inspectionschemeaimedatsimplifyingbusinessregulation andbringing"transparencyandaccountability"inthesystem. ¡Forthispurpose,acentralAnalysisandIntelligenceUnit (CAIU)willbesetuptoanalyzeandcollectfielddata"fora transparentandaccountablelabourinspectionsystem". ¡TheschemewillbebroughtintoeffectfromOctober1forthe employees'providentfundorganization(EPFO),and employees'stateinsurancecorporation(ESIC),inspection undertheambitofthechieflabourcommissioner(CLC)and thedirectorategeneralofminessafety(DGMS).

  5. PAGE05 LABOURLAWSTOBEREVIEWED Existinglabourlawsneedtobeamendedandthegovernmentisactivelyconsideringit,labourandemployment ministerinformedparliamenton16.7.2014.MinisterofstateforlabourandemploymentVishnudeoSaitoldRajya SabhathattheamendmentsinhostoflabourLaws,includingminimumwagesAct1948,labourlaws1988, factoriesact1948andChildlabouract1986areunderactiveconsiderationofthegovernment.Industry representativeshavebeenlongdemandingchancesinlabourlawswhichtheyhaveoftentermed"archaic"anda hindranceinraisingandexpandingtheirfacilities. MINIMUMWAGESACTTOBEAMENDED Aspartoftheamendments,thelabourministryplanstosetanationalfloorforminimum wagesforworkersacrossprofessions.Theminimumwageswouldberevisedeveryfive yearsbythecenterinaccordancewiththeNSSO'sconsumerexpendituresurveyandit wouldalsorevisedeverysixmonthsaccordingtotheconsumerpriceindexbystates. Theproposedchanges,whichareapartoftheminimumwages(Amendment)Bill,2013 hasnowbeenputoutforpubliccommentsbythelabourministry."Allcommentsshould besubmittedbyJune30".Saidthelabourministry. Theplannedchangesalsoprovideforenhancepenaltiesandimprisonmentfor defaultersaswellashighercompensationtoworkers. CENTRETOAMENDLABOURLAWS ThelatestmovebythenewgovernmentistopushthroughkeylabourreformsthathavedentedIndian's attractivenessasaninvestmentdestinationandalsoimpactedthedomesticmanufacturingsector.Overthelast oneweekthelabourministryhasbegunreviewingpendinglegislationsincludingamendmentstothefactoriesAct, IndustrialDisputesAct,ChildLabourActandMinimumWagesAct. APPRENTICESHIP:OPENSMOREAVENUESFORYOUTH FinanceMinistryArunJaitley,inhisBudgetspeech,saidtheapprenticeshipact,1961,willbeamendedtomakeit moreresponsivetoindustryandyouth. TheHRindustryhasbeenseekingsuchanamendedforalongtimebringinalotmorepeopleonboardfor apprenticeship. Inalistof17suggestion,theIMGrecommendedtobringBA,B.Com,andBScgraduatesundertheacttoenhance theirskillsandemployability.Atpresent,apprenticeshiptrainingisrestrictedtofourcategoriesofapprentices-trade apprentices(ITIpassouts,8th10th&12thpassouts),graduatesapprentices(graduatesengineer),technician apprentices(diplomaholder)andtechnicianvocationalapprentices(10+2vocationalsubjects). HARYANAALSOTOAMENDLABOURLAWSINRAJASTHAN'SFOOTSTEPS Followinginthefoot-stepsoftheRajasthangovernment,Haryanaissettochangecertainlabourlaws TheHaryanagovernmentismullingchangestotheindustrialdisputesact,thefactoriesactandtheRajasthan government,whichrecentlydecidedtoreplacetheseacts,saidYSMalik,additionalchiefsecretary,Haryana. ThestategovernmenthashiredWiprotomakeindustrialtaxationgoonline"toreducepaperworkandrestore transparencyintaxadministration",hesaidduringaninteractionbetweenthePHDchamberofCommerceand industryandHaryanaofficials. Maliksaidtheproposedchangeswillbesenttothecenterforitsconsideration.TheVasundharaRaje-led RajasthangovernmenthadfileditsproposedchangestotheunionlabourministryonJuly03.

  6. PAGE06 GettheADPexpertiseworkingforyou. A60yeartrackrecordthatspeaksforitself. ADPIndia ThamaraiTechPark,S.P.PlotNo.16to20&20AThiruViKaIndustrialEstate,InnerRingRoad,Guindy,Chennai-600032. Phone:1-800-4190-237 Email:contactadp@adp.com

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