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APRIL 2014
EDITORS NOTE
Hello Readers, We are happy to present the Strictly Statutes 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 to your notice. The Supreme Court has held that authorities who act irresponsibly in contesting trivial labour disputes will be personally liable for the expenditure incurred 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 and termination were separate and distinct was overruled. The Madras High Court has held that 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 an employee is liable for criminal action. With regard to the elections, IT firms will not be exempted from declaring a holiday on polling day. Employers will have to reconcile international workers data with Foreign Regional Registration Office (FRRO) on a periodic 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 for enriching content as well as your feedback. Please write to: contactadp@adp.com
TABLE OF CONTENTS
Pages
Compliance Calendar for April 2014 Irresponsible authority, in contesting trivial Labour disputes.. Manager without managerial power, held to be a workman and nature of duties.. Resignation is initiated by Employees and Termination by Employer Wrong Declaration of Dependency for Medical Benefit Holiday on polling day: IT firms not exempted Mandatory registration of digital signature for PF activities
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STRICTLY STATUTES
Compliance Calendar for April 2014
Due Date Professional Tax Remittances 10th Apr 14 15th Apr 14 20th Apr 14 21st Apr 14
th Apr 14 28th 30 Aug 13
Scope
Due Under
Mode
Andhra Pradesh & Madhya Pradesh Gujarat Karnataka West Bengal Kerala, Maharashtra, Assam & Orissa Maharashtra, Assam & Orissa Karnataka Maharashtra, Assam & Orissa
State-wise regulations Gujarat PT regulations Karnataka PT regulations WB PT regulations State-wise State Wise regulations regulations State-wise State Wise regulations regulations
Labour Welfare Fund Remittances 20th Apr 14 PF 15th Apr 14 15th Apr 14 Central - Remittance of Contribution Central - International worker with wages and nationality EPF & MP Act 1952 EPF & MP Act 1952 By Challan Statement in IW1 Kerala Kerala State Labour Welfare Fund By Challan
ESI 21st Apr 14 Main Code & Sub Codes - Remittance of Contribution ESIC Act 1948 By Challan
Employment Exchange 30th Apr 14 Strength Returns Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 By Return in ER - I
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STRICTLY STATUTES
Important Judgements
Irresponsible authority, in contesting trivial Labour disputes, will be liable to pay the expenditure personally
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.
Manager without managerial power, held to be a workman and nature of duties, not designations will determine the status of workman
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 Court which otherwise lacks jurisdiction will not confer any authority on such court to try the dispute.
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STRICTLY STATUTES
Compensation on accident under ESI is essential and substantial than under Employees Compensation Act.
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.
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STRICTLY STATUTES
News to note
Wrong Declaration of Dependency for Medical Benefit
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.
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STRICTLY STATUTES
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.
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STRICTLY STATUTES
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 of three 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 STATE TAX 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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STRICTLY STATUTES
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