ADP India - Labour Laws to be reviewed

1
SEP
2014
PAGES Compliance Calendar for Sep 2014
02 Important Judgments Contractors can seek
voluntary coverage 03 Any director of a
company, not 03 prosecuted
under minimum wages act. Merely working for 240
days cannot be the sole ground for
regularization. 04 News to note
Labour laws to be reviewed
05 Minimum wages act to be amended
05 Centre to amend labour laws
05 Apprenticeship opens more avenues
05 Haryana also to amend labour laws in 05
Hello Readers,
The Compliance Calendar for September
includes remittances for PF, ESI and Labour
Welfare
In Important judgements, the Honourable
Gujarat High court has held that Contractors can
seek voluntary coverage when not coverable under
PF Act. The Honourable Himachal Pradesh High
Court has held that any Director of a company,
not responsible for its affairs can't be
prosecuted under Minimum wages Act. The
Honourable Jharkhand High Court has pronounced
that merely working for 240 days cannot be
the sole ground for regularization.
when not coverable under pf act
responsible for its affairs can't be
In News to Note, the Labour ministry has approved
a new scheme for inspection
The country's Labour Laws are to be reviewed
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. Apprenticeship Plans are to bring BA,
B.Com, and BSc graduates under the act to enhance
their skills and employability to open more
avenues for youth. Haryana is likely to amend
Labour Laws in Rajasthan's footsteps to the
Industrial Disputes Act and the Factories Act
for youth
rajasthan's footsteps
We hope you find the contents of this
newsletter relevant and useful. We welcome your
suggestions and inputs for enriching the content
of this newsletter. Please write to
contactadp_at_adp.com
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PAGE 02
Compliance Calendar for the month of Sep 2014
Due Date
Activity
Due Under
Mode
Professional Tax Status Remittances
10th Sep 14
Andhra Pradesh Madhya Pradesh
State Wise regulations
By Challan
15th Sep 14
Gujarat
Gujarat PT regulations
By Challan
15th Sep14
Tamil Nadu
Tamil Nadu PT regulations
By Challan
20th Sep14
Karnataka
Karnataka PT regulations
By Challan
21st Sep14
West bengal
West bengal PT regulations
By Challan
30th Sep14
Maharashtra, Assam Orissa
State Wise regulations
By Challan
30th Sep14
Karnataka
Karnataka PT regulations
Online
30th Sep14
Pudhucheri
Pudhucheri PT regulations
By Challan
Labour Welfare Fund Remittances
20th Sep 14
Kerala
Kerala State Labour Welfare Fund
By Challan
PF Central
15th Sep 14
Remittance of Contribution
EPF MP Act 1952
By Challan
15th Sep 14
International worker with wages and nationality
EPF MP Act 1952
Statement in IW 1
ESI Central
21st Sep 14
Remittance of Contribution (Main code and Sub
Codes)
ESIC Act 1948
By Challan
Employment Exchange (Compulsory Notification of
Vacancies) Act, 1959
20th Sep 14
Occupation
Return Form
ER 2
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PAGE 03
CONTRACTORS CAN SEEK VOLUNTARY COVERAGE WHEN
NOT COVERABLE UNDER PF ACT. In a case of M/s.
K.M. Sarmah Electricals and Others vs. Indian oil
Corporation and others, the honourable Gujarat
High Court through the verdict by honourable
justices Mr. Harishikesh Roy pronounced
that The Employees of contractors can be assured
of the benefits of the employees' provident funds
and Miscellaneous provisions Act, 1952 if the
contractors are interested to work for Indian oil
corporation, they may apply for allotment of PF
code number by invoking section 1(4) of the Act
is a beneficial piece of legislation and its
benefits should reach all employees. The main
object of the employees' provident funds and
miscellaneous provisions act, 1952, is to
encourage the habit of regular saving by the
employees. The principal employer may recover
the employee's contribution from the contractor
under section 8A of the employees' provident
funds and miscellaneous provisions
Act,1952. When there is no employee employed by
the contractor, he can submit nil return to the
EPF authority.
ANY DIRECTOR OF A COMPANY, NOT RESPONSIBLE FOR
ITS AFFAIRS CAN'T BE PROSECUTED UNDER MINIMUM
WAGES ACT. In an extraordinary case Deputy
Manager, M/s. Bharat Heavy Electrical Ltd vs.
State of H.P. and Another, the honourable
Himachal Pradesh High Court through honourable
justice Mr. Rajiv Sharma pronounced that the A
criminal, complaint, filed before the chief
judicial magistrate, under the provisions of the
minimum wages Act, 1948, against any of the
Directors, managers or secretaries or such other
official of the company, without arraigning the
company is not maintainable as per requirement of
section 22C of the Act. A criminal complaint,
filed before the judicial magistrate, under the
provisions of the minimum wages Act, 1948,
against any of the directors, managers or
secretaries or such other official of the
company, is not maintainable if the accused is
not in-charge, responsible to the company for
its business. A director of the company cannot
be prosecuted, on account of his being director,
if he is not in charge or responsible to the
company for its day- today affairs. A person
even not holding any office or designation in a
company may be liable to be prosecuted if he
satisfies the main requirement of being in-
charge of and responsible of conduct of business
of the company at the relevant time.
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PAGE 04
MERELY WORKING FOR 240 DAYS CANNOT BE THE SOLE
GROUND FOR REGULARIZATION. In a case of their
Workmen, Bihar Colliery Kamgar union vs. Bharat
coking coal ltd. Another, the honourable
Jharkhand High Court through its bench comprising
honourable justices Mr.R.Banumathi and Mr.Shree
Chandrashekhar pronounced that Adverse inference
against the management for non-production of
attendance register is not justified in the
absence of any legal order passed by the
industrial tribunal in this respect. Without
there being employee employer relationship,
demand of regularization by the workmen is not
justified.erely working of 240 days" in a
calendar years cannot be the sole ground for
regularization. Non-compliance of the provisions
of contract labour (Regulation and Abolition)
Act, 1970 would not result in regularization,
rather it would result in prosecution under
section 23/24 of the Act. Wages /salary payment,
control and supervision are the main deciding
tests if the workmen are of contractor's
employees or of principal employer's
employees. Mere control and supervision of the
contractor's employees by the principal employer
will not make them employees of the principal
employer because when the contract is for supply
of labour will, work under the control and
supervision of the principal employer. If right
to regulate the employment and ultimate control
lies with the contractor, the contract labour
cannot claim to be employed by the principal
employer In the absence of any legal order,
passed by the labour court/industrial tribunal
for production of attendance record by the
management, drawing adverse inference by the
tribunal for non-production of attendance
register by the management, is erroneous.
LABOUR MINISTRY OKAYS NEW SCHEME FOR INSPECTION
The union labour ministry has approved a
more liberal inspection scheme aimed at
simplifying business regulation and bringing
"transparency and accountability" in the
system. For this purpose, a central Analysis and
Intelligence Unit (CAIU) will be set up to
analyze and collect field data "for a
transparent and accountable labour inspection
system". The scheme will be brought into effect
from October 1 for the employees' provident fund
organization (EPFO), and employees' state
insurance corporation (ESIC), inspection under
the ambit of the chief labour commissioner (CLC)
and the directorate general of mines safety
(DGMS).
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PAGE 05
LABOUR LAWS TO BE REVIEWED Existing labour laws
need to be amended and the government is actively
considering it, labour and employment minister
informed parliament on 16.7.2014. Minister of
state for labour and employment Vishnu deo Sai
told Rajya Sabha that the amendments in host of
labour Laws, including minimum wages Act 1948,
labour laws 1988, factories act 1948 and Child
labour act 1986 are under active consideration of
the government. Industry representatives have
been long demanding chances in labour laws which
they have often termed "archaic" and a hindrance
in raising and expanding their facilities.
MINIMUM WAGES ACT TO BE AMENDED As part of the
amendments, the labour ministry plans to set a
national floor for minimum wages for workers
across professions. The minimum wages would be
revised every five years by the center in
accordance with the NSSO's consumer expenditure
survey and it would also revised every six
months according to the consumer price index by
states. The proposed changes, which are a part of
the minimum wages (Amendment) Bill, 2013 has now
been put out for public comments by the labour
ministry. "All comments should be submitted by
June 30". Said the labour ministry. The planned
changes also provide for enhance penalties and
imprisonment for defaulters as well as higher
compensation to workers.
CENTRE TO AMEND LABOUR LAWS The latest move by
the new government is to push through key labour
reforms that have dented Indian's attractiveness
as an investment destination and also impacted
the domestic manufacturing sector. Over the last
one week the labour ministry has begun reviewing
pending legislations including amendments to the
factories Act, Industrial Disputes Act, Child
Labour Act and Minimum Wages Act.
APPRENTICESHIP OPENS MORE AVENUES FOR
YOUTH Finance Ministry Arun Jaitley, in his
Budget speech, said the apprenticeship act, 1961,
will be amended to make it more responsive to
industry and youth. The HR industry has been
seeking such an amended for a long time bring in
a lot more people on board for apprenticeship. In
a list of 17 suggestion, the IMG recommended to
bring BA, B.Com, and BSc graduates under the act
to enhance their skills and employability. At
present, apprenticeship training is restricted to
four categories of apprentices- trade
apprentices (ITI pass outs, 8th 10th 12th pass
outs), graduates apprentices (graduates
engineer), technician apprentices (diploma
holder) and technician vocational apprentices
(102 vocational subjects).
HARYANA ALSO TO AMEND LABOUR LAWS IN RAJASTHAN'S
FOOTSTEPS Following in the foot-steps of the
Rajasthan government, Haryana is set to change
certain labour laws The Haryana government is
mulling changes to the industrial disputes act,
the factories act and the Rajasthan government,
which recently decided to replace these acts,
said YS Malik, additional chief secretary,
Haryana. The state government has hired Wipro to
make industrial taxation go online "to reduce
paperwork and restore transparency in tax
administration", he said during an interaction
between the PHD chamber of Commerce and industry
and Haryana officials. Malik said the proposed
changes will be sent to the center for its
consideration. The Vasundhara Raje-led Rajasthan
government had filed its proposed changes to the
union labour ministry on July 03.
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