editorial - naip.in · mumbai office - 204, corporate corner, near dalmia college,sunder nagar, s v...

MONTHLY NEWSLETTER PUBLICATION MONTH – DECEMBER 12, VOL. – 3, ISSUES -12

Editorial

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NATIONAL ACADEMY OF INDIAN PAYROLLMumbai Office - 204, Corporate Corner, Near Dalmia College,Sunder Nagar, S V Road, Malad (west)Mumbai 400064

UK Office – 90 Long Acre, Arne Street Entrance, Convent Garden, London, WC2E 9RA,

Telephone 022 42757100, E-MAIL: , [email protected] www.naip.in

Welcome to the December issue of our newsletter

Our Articles are designed in such a way that they will keep you informed and up to date with HR/Payroll related latest News, Notifications, Compliance due date, case laws & much more.

As usual the Payroll / HR scene has been very busy and this issue we include articles on :

• Provident fund news for expats and international workers. • There is relaxation of Labour Laws, Job growth, Salary hikes, Outplacement of job, etc. Notification / Amendments of Laws :

• Hike in Minimum wages for State of Delhi & Uttar Pradesh. • IT/ITeS Establishments in Karnataka (Bangalore) Exempted from Industrial Employment.

Special topics on ESIC benefits, six types of social security benefits.

Compliance Due dates.

Some legal cases with important judgment from Supreme Court and other cases from High Court with reference number.

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Expats from Select Countries can Withdraw PF before they Turn 58

Now, Adlar will be eligible to withdraw from provident fund on completion of his Indian assignment.

Also, Adlar can now claim refund from the provident fund through his employer, says Iyer.

The change will benefit all foreign nationals who have contributed to the provident fund in India before

the social security agreement between their home country and India came into force. It will no

longer be mandatory for international workers to hold an Indian bank account to claim the

provident fund withdrawal, says Sonu Iyer, partner & national leader, human capital at Ernst &

Young. For example, let us assume Adlar, a Dutch national was seconded to India for a two- year

assignment on April 1,2011.As on April 1,2011,there was no social security agreement between

India and the Netherlands. Therefore, Adlar was mandatorily required to become a member of the

provident fund in India as an international worker. The social security agreement between India and

the Netherlands is effective from December 1,2011.Adlar then obtained a certificate of coverage in

the Netherlands and was exempt from making provident fund contributions in India.

However, it is important to note that this benefit is available for expatriates coming from countries

with which India has signed an SSA, says Vineet Agarwal, executive director, KPMG. From non-SSA

countries, the expatriates will be able to withdraw their provident fund only at 58 years or under

specified conditions. As per notification, expatriates from SSA countries shall be eligible to

withdraw provident fund upon cessation of employment with a covered establishment or a

company which is covered under employees provident fund (EPF) in India. As long as the expatriate

continues to work for a covered establishment in India, he will have to continue depositing

provident fund and can withdraw the same only after completing the Indian assignment.

Provident fund refund is allowed on completion of the Indian assignment and the amount can be

received in expatriates bank account directly or through the employer, the notification said.

Moreover, the number of years of service in a SSA country will be combined with the services in

India for determining pension eligibility. With this notification, the provident fund amount can be

withdrawn on completion of the Indian assignment which has made the expatriates happy.

Expatriates from some countries may soon be able to withdraw their provident funds before they

reach 58 years. The ministry of labour and employment has issued a notification last month

allowing PF refund for expatriates coming from countries that have Social Security Agreements

(SSA) with India. As on date, India has Social Security Agreements with twelve countries. Out of this,

SSAs with eight countries, which include Belgium, Germany, France, Switzerland, Luxembourg,

Denmark, Korea and the Netherlands have come into effect. The Social Security Agreements with

Hungary, Czech Republic, Finland and Norway are yet to come into force. Earlier, expatriates could

withdraw the amount only after they had achieved 58 years or under specified conditions.

Those from countries with a Social Security Agreement with India can go for withdrawal of money, says Vidyalaxmi

Telephone 022 42757100, E-MAIL:

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THE NOTIFICATION FINE PRINT

Following this circular, all eligible international workers who have paid contributions since November 2008 and have since finished their assignment in India, can apply for provident fund withdrawal. The provident funds department, however, has not issued any separate instructions with respect to documents submitted to claim provident fund refunds. As of now, expatriates and the employer can file a joint application in the prescribed Form No 19.This form does not require any supporting documents to be submitted along with the application. An important aspect that requires clarification is whether provident fund contributions from 2008 can be withdrawn or only the contributions made after SSA has become effective can be withdrawn.

We may expect some clarifications shortly as all SSAs which India has with countries have come into effect only after 2008, says Agarwal.

The provident fund amount is taxable in India if the contributions were for less than five years. If the individual takes up another job in the home country and applies for a PF refund while his total tenure has been less than 5 years in India, then the amount withdrawn shall be taxable, says Agarwal. Withdrawal from provident fund is exempt from tax in any of the following situations :

If the employee has rendered continuous service with the employer for the period of 5 years or more.

If the employee has withdrawn from provident fund by reason of ill-health, or any other reason beyond his/her control.

If on termination of employment, the refund amount is transferred to the provident fund of another employer in India. If the individual takes up another job in India and works for more than 5 years in total in India, the lump sum amount will be exempt from tax, provided contribution made in the first employment is transferred to the provident fund account with the second employer, says Iyer vidyalaxmi.

TAX IMPLICATIONS




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PF Withdrawal Made Easier for 'International Workers'

The concept of 'international worker' was introduced as a special category in the Indian Provident Fund Scheme for the first time in October 2008, requiring foreign nationals working in India to contribute towards the Provident Fund. Back then, the rules relating to contribution and withdrawal were same for them as for the local employees. Then, in September 2010, restrictions were imposed on the withdrawal from Provident Fund for 'international workers' until they reach the age of 58 years. Now, last month, there was a partial roll-back on the restrictions to withdraw from Provident Fund for them.

'International workers', covered under a social security agreement entered into between India and another country, will now be allowed to withdraw their contributions from the Provident Fund on termination of employment with the Indian employer. As of now, India has eight social security agreements in force — with Belgium, Germany, Switzerland, Luxembourg, France, Denmark, Korea and the Netherlands.

For example, Phil, an alpha geek from France, was seconded by his home entity on April 1, 2010, for 30 months assignment to work in India. As on April 1, 2010, there was no existing social security agreement between India and France. Therefore, Phil was mandatorily required to become a member of the Provident Fund in India as an 'international worker'. The social security agreement between India and France is operative from July 1, 2011. Since then, Phil, an existing member of social security scheme in France obtained a certificate of coverage in France and was no longer required to contribute to the Provident Fund in India.

Now, after the recent change, Phil will be eligible to apply for withdrawal of his Provident Fund contributions while repatriating on completion of his assignment in India. The change will benefit all foreign nationals who have contributed to the Provident Fund in India before the social security agreement between their home country and India came into force.

However, foreign nationals on assignment from countries with whom India has not entered into a social security agreement will still be eligible to withdraw from the Provident Fund on retirement after reaching the age of 58.

Another change in the rules now allows 'international workers' to claim withdrawal from the Provident Fund either into their bank account directly or through the employer. Previously, 'international workers' were required to hold an Indian bank account to claim a withdrawal from the PF. It may no longer be mandatory for them to hold an Indian bank account to do so.

In the example above, Phil can now claim refund from the PF through his employer and can close his Indian bank account immediately on completion of Indian assignment. These changes are surely a thumbs up for foreign nationals on assignments to India.



, [email protected] www.naip.inTelephone 022 42757100, E-MAIL:

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Basu pitches for flexible labour laws

Making a strong case for relaxation of labour laws, World Bank chief economist Kaushik Basu today said that rigid regulations were hurting India's growth.

“India's labour market is over regulated. India's rigid labour laws are hurting India's growth ... Flexible labour laws will help both organised and unorganised sector,” Basu said at a World Bank event here.

He said there was a need for flexibility in labour market even as there exists regulatory framework.

“If we will create legal environment, there would be much demand for these workers...so we need regulatory framework but we need greater flexibility in labour market. But we don't want completely free labour market,” he said.

Labour reforms have been pending in India for long.

Amendments to various labour laws have been awaiting Parliamentary approval. India has plethora of labour laws dealing with trade unions, provident funds, industrial disputes and industrial establishments.

India's economic growth rate has fallen to a nine-year low of 6.5 per cent in 2011-12. In the first (April-June) quarter of the current fiscal, the growth has slowed to 5.5 per cent.

As per the estimates of the Reserve Bank, the economy is likely to grow by 5.8 per cent in 2012-13.

Basu was earlier the Chief Economic Advisor in the Ministry of Finance, before being chosen as the chief economist by the World Bank.

He further said that manufacturing jobs are gradually moving from developed countries to developing economies.

“With new technology and new innovation, jobs move around the world ... This is to remind industrial countries to not to indulge in protectionism. It is bad for rich country, it is bad for poor countries,” he said.

Keywords: Labour laws, relaxation of labour laws, regulatory framework for labour laws, rigid labour regulations, legal environment for labour laws, amendments to labour laws, economic growth, Kaushik Basu,




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Tata Steel to shed 900 jobs in U.K.s

Employees at MNC banks like Citigroup, StanChart, HSBC may

get just 6 pc pay hike this year

Tata Steel has decided to axe 900 jobs at its British operations and close 12 sites, in what the company claims a restructuring move to improve competitiveness.

It has also decided to restart blast furnace 4 in the first quarter of 2013. This is one of two blast furnaces in Port Talbot, South Wales, which is being rebuilt as part of a £250 million investment programme.

It will also lead to the restarting of the hot strip mill at Llanwern site in Newport, South Wales. The proposal includes the restructuring of management and administrative functions which would lead to a loss of 500 jobs at Tata Steel's Port Talbot-based production hub. “The proposed changes are expected to lead to a net loss of 900 jobs in the U.K., including 580 in South Wales, 155 in Yorkshire, 120 in the West Midlands and 30 in Teesside,” the company said.

These changes would concentrate services at six distribution and processing hubs which would benefit from £22 million of new investment, but would also lead to the closure of 12 sites, including Tafarnaubach and Cross Keys in South Wales.

In addition, shift levels at the company's Rotherham and Hartlepool operations would be reduced to match production to lower demand for bar products and pipelines.Tata Steel will be working with the trade unions and government to ensure that it provides the affected workers as much assistance and support as possible.

Executives at multinational banks such as Citigroup, Standard Chartered and HSBC in India are staring at just about half the rate of salary hike they received last year, as slowing deals and a sluggish global economy crimp payouts.

Front-office workers, who bring in customers, and traders, who directly make profits, will benefit more than their colleagues who monitor risks and do paperwork, said people familiar with the plans. Increases this year may be about 5-6 per cent, compared with 10-11 per cent last year, they said, but did not want to be identified.

"The pay hike and bonus will be lower than that was offered last year," said a banker at a multinational bank who did not want to be identified.

A slowing economy has taken a toll on deals, with equity and debt offerings remaining sluggish. Although mergers and acquisitions have been looking up with deals such as Diageo buying a stake in United Spirits, they are few and far between for the industry as a whole.

"The increments are expected to be less across the sector on account of the global slowdown and lower growth in the country,"




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Third-Party Pros to Check Safety Norms for Labour

Surge in demand for MBAs in Asia

To free construction firms from the clutches of inspector raj, the government plans to allow independent accredited professionals to check their compliance with labour safety norms. The new system, apart from curbing corruption and harassment, is also expected to boost workers safety in the high-risk sector that directly employs over 30 million Indians.

Currently, around 600 labour safety inspectors appointed by state governments are responsible for ensuring safety at over 3,00,000 construction sites across the country. The rate of fatal accidents among construction workers is five times higher than manufacturing sector workers, and 165 out of every 1,000 workers get injured at the workplace, making it the riskiest sector to work in. We have asked the Quality Council of India to develop a programme for accredited professionals who can go to building sites where inspectors are unable to go, and regularly certify their compliance with safety norms, said Anoop Chandra Pandey, joint secretary in the union labour and employment ministry. Though the powers of regulation will remain with the state government, the use of third party professionals is expected to help red-flag genuine safety risks without causing harassment to the industry.

Apart from the risk of fatal accidents, workers also face health hazards from the materials they work with such as asbestosis, silicosis and lead poisoning. Construction workers are the most vulnerable segment of the workforce across the world, as their work is unorganised in nature, Pandey said. Till 1996,India didn't have any laws for such workers protection and the implementation of the Building and Other Construction Workers Act introduced that year has been patchy. We are not satisfied with the status of the legislation and policy to ensure workplace safety, the labour ministry official said. The implementation of the law is not good, though it is slightly better in bigger projects, compliance is worse in smaller construction sites, he said, pointing to the difficulties of monitoring lakhs of sites with just 600 inspectors

Demand for management graduates is set to grow from 15 percent in 2012 to 26 percent in 2013, Economic Times reports. According to the “QS TopMBA.com Jobs and Salary Trends Report 2012/2013”, MBAs are needed in consulting and professional services, manufacturing, IT/computer services and microfinance. In India in particular, the demand has grown phenomenally. It increased 43 percent in 2010, 57 percent in 2011 and 16 percent in 2012. It is estimated to grow 29 percent in 2013. India is now ahead of the U.S. in terms of the volume of jobs for fresh MBA graduates. The job portal iimjobs.com, for top MBA graduates, has seen a 15 percent to 20 percent increase in job listings. Employers prefer MBAs with international experience, strong interpersonal and “soft skills”. Language and intercultural communication skills are equally important.

Move to free construction cos from clutches of inspector raj




Tax Rebate Allowed on Capital Gains After Property Sale

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Income-Tax Appellate Tribunal (ITAT) of Chennai has held that interest on home loans will continue to remain out of the tax net even if the house is sold later.

The tribunal clarified that the interest paid on loans is certainly an expenditure that should be taken into account while computing the income from house property as well as in computing capital gains arising from sale of the same property. The order was given on October 31 by a two-member bench comprising OK Narayanan and SS Godara. In this case, the taxpayer C Ramabrahmam borrowed money for buying property and claimed deduction for interest paid for the borrowed funds, while computing income from house property.

However, when the house was sold, the taxpayer treated the interest paid on loan as "cost of acquisition" for the purpose of computing capital gains and claimed deduction there too.

The assessing officer, however, refused to accept the claim on the ground that interest has been allowed as deduction under section 24 (b) of the Income-tax Act that deals with income from house property and the deduction cannot be allowed again while computing capital gains arising from the sale of house.

The first appellate authority, Commissioner (Appeal), allowed the claim of the tax payer but the income-tax department moved the Income-tax Appellate Tribunal (ITAT), the second appellate authority for deciding tax disputes.

The ITAT dismissed the appeal, holding that deduction under section 24 (b) of the Income-tax Act and computation of capital gains under section 48 of the Income-tax Act are covered under different heads of income.

The first section deals with house property and the other section deals with capital gains. The first deduction was claimed when the taxpayer computed income from house property, while the second claim was made when the house was sold and capital gains were computed.

The ITAT held that both these provisions of the Income-tax Act are altogether different, the taxpayer is entitled to claim deduction of interest paid on borrowed loans while computing capital gains too.




AMENDMENTS and NOTIFICATIONS

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Notification No. 01/2012 under CPR Scheme 2011

Dated 23rd October, 201

Subject: Extension of time limit for filing ITR-V forms for A.Y. 10-11 and A.Y. 2011-12

In exercise of its powers under clause (ii) of Para 14 read with clause (7) of Para 4 of the 'Centralized Processing of Returns Scheme, 2011' , issued vide CBDT Notification No. SO 16(E) dated 4.1.2012, the Director General of Income Tax (System) hereby extends the time limit for filing ITR-V forms relating to Income Tax Returns filed electronically (without digital signature Certificate) for A.Y. 2010-11 (filed during F.Y. 2011-12) and for A.Y. 2011-12 (filed on or after 1st April, 2011). These ITR-V forms can now be filed upto 31st December, 2012 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later. This direction is issued to mitigate the hardship and grievance of the tax payers who have been prevented by reasonable causes to file the ITR-V in time.

Sd/-

(RANI SINGH NAIR)

Director General of Income Tax (Systems)




Job growth registers sharp drop in Q1

Salary hikes may inch downward next year

Companies warm up to outplacements

Job creation grew at its slowest pace in three quarters in eight key sectors in manufacturing and services, Indian Express reports. According to Labour Bureau data, the number of new jobs during the first quarter of 2012 declined marginally in metals and automobiles by 0.04 lakh and 0.05 lakh, respectively. There was virtually no hiring in sectors such as leather, handloom and transport, said the 15th quarterly report on the “Effect of Economic Slowdown on Employment in India”. There was a marginal increase in textiles, where jobs grew by 0.50 lakh, gems and jewellery 0.05 lakh and IT and BPO 0.27 lakh. In the 12 months ended June, job growth was a moderate 6.94 lakh against 8.37 lakh at the end of March. Sunil Sinha, head of economic research at rating agency CRISIL, attributed the trend to the slowdown in economic growth.

Pay hikes in 2013 will likely head lower than last year as the economy continues to grapple with the downturn, Economic Times reports. The average increment this year has been 10 percent to 12 percent, but may fall to 8 percent to 9 percent next year, says Ganesh Shermon, partner and country head, human capital, KPMG India. Anandorup Ghose, practice head for executive compensation and corporate governance at Aon Hewitt, expects increments to be 10.6 percent on an average, which is slightly below the 11 percent level in 2012. If the forecasts are correct, increments in March 2013 may be the lowest in four years. The worst year so far has been 2009, when hikes were just 6.6 percent. Some companies may increase the bonus component in salaries, but are likely to cut back on guaranteed payments.

Firms have started using outplacement to lend a more humane face to the employee trimming-down process.

In a bid to reduce employees and maintain their employer brand, companies have started using outplacement to lend a more humane face to the employee trimming-down process.Outplacement refers to helping employees, mostly with a work experience of 10 years and above, in getting an alternate employment, before he/she is relieved from the company. This work is usually outsourced to external agents and would also include aspects like soft skill building, resume polishing and counselling, all of which is paid for by the host company.

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Industry experts said that outplacement had become more and more prevalent, as companies could no longer afford to let go an employee in a bitter manner. "Since the job market is gloomy, we do not know when we would need our old employees to come back and work with us. If the downsizing process is smooth, he/she can be called back. This makes the employee actually feel grateful to the company than feeling unhappy. A frustrated employee leaving the organisation may prove costly for us," explained the human resource head of an IT services firm.

About 13 per cent of employers surveyed have indicated a need for Employee Outplacement services, that is, facilitating displaced employees to find a new job and manage this challenging phase in their career.

The survey also said that companies are not only assisting employees to find fitment but also investing in the softer side of Outplacement through services like Executive Coaching, to help employees cope with the pink-slip syndrome.

"Now that companies are publicly informing shareholders of downsizing their employee strength, they are open to employees about the outplacement process. It has now become a standard practice for corporate branding. However, this does not necessarily mean that the company is reducing employee strength. We have seen cases, especially in IT industry, where the skill-set requirements change over time. Hence the company would outplace the existing employee and get an individual with the requisite skills."

Human resource consultants also agree. Tthat outplacements by companies had increased atleast by 35 per cent compared to last year. According to him, this is because certain sectors are facing a tough time retaining its employees and hence they would need to need to make the relieve employees in an appropriate manner.

"It is a smoother and employee-friendlier way of doing pink-slips. However, this cannot be done in abundance by companies at this market as there are no adequate jobs to choose from in the industry. However, it is crucial that the senior employees are relieved in this smooth fashion,"

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Delhi Revised Minimum wages w.e.f. 1-10-2012




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Uttar Pradesh Minimum Wages Revised Oct 1 2012 To Mar 31 2013




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SECTION 192 OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - SALARY - INCOME-TAX DEDUCTION FROM SALARIES

UNDER SECTION 192 DURING THE FINANCIAL YEAR 2012-13

CIRCULAR NO. 8/2012 [F.NO. 275/192/2012-IT(B)], DATED 5-10-2012

IT/ITeS Establishments in Karnataka (Bangalore) Exempted fromIndustrial Employment (Standing Orders) Act, 1946 Until March 31, 2013 While Their Draft Standing Orders Are Being Reviewed

Reference is invited to Circular No. 05/2011, dated 16-8-2011 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961 (hereinafter 'the Act'), during the financial year 2011-12, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2012-13 and explains certain related provisions of the Income-tax Act, 1961 (hereinafter the Act) and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.

Information Technology (IT) and Information Technology-enabled Services (ITES) establishments in the State of Karnataka (which includes the city of Bangalore) will be exempted from the provisions of the Industrial Employment (Standing Orders) Act, 1946 ("Standing Orders Act") until March 31, 2013 during review of their draft standing orders, the State Government of Karnataka has determined in a notification dated September 24, 2012. This exemption is subject to the condition that the IT and ITES establishments to which the Standing Orders Act applies submit their draft standing orders for certification with the Labour Commissioner by December 31, 2012, which will then become binding effective April 1, 2013 after the labor department has reviewed the orders and consulted with the employees' associations.

As set out in the previous alert on the subject,1 the Standing Orders Act, inter alia, requires the employer to define and publish uniform conditions of employment, including in relation to classification of workmen, manner of specifying the period and hours of work and holidays, shift work, attendance and late arrival, conditions and procedure for granting leave, requirements to enter the premises and liability to search, closing and reopening of the establishment, termination of employment, suspension and dismissal for misconduct, etc.




ESIC - Benefits

The section 46 of the Act envisages following six social security benefits :-

(a) Medical Benefit : Full medical care is provided to an Insured person and his family members from the day he enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/- .

(b) Sickness Benefit(SB) : Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year. In order to qualify for sickness benefit the insured worker is required to contribute for 78 days in a contribution period of 6 months. Extended Sickness Benefit(ESB) : SB extendable upto two years in the case of 34 malignant and long-term diseases at an enhanced rate of 80 per cent of wages. Enhanced Sickness Benefit : Enhanced Sickness Benefit equal to full wage is payable to insured persons undergoing sterilization for 7 days/14 days for male and female workers respectively.

(c) Maternity Benefit(MB) : Maternity Benefit for confinement/pregnancy is payable for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year

(d) Disablement BenefitTemporary disablement benefit (TDB) : From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.

Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board

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(e) Dependants' Benefit(DB) : DB paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured person in cases where death occurs due to employment injury or occupational hazards.

(f) Other Benefits :- Funeral Expenses : An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment. - Confinement Expenses : An Insured Women or an I.P.in respect of his wife in case confinement occurs at a place where necessary medical facilities under ESI Scheme are not available.

In addition, the scheme also provides some other need based benefits to insured workers.

- Vocational Rehabilitation :To permanently disabled Insured Person for undergoing VR Training at VRS. - Physical Rehabilitation : In case of physical disablement due to employment injury. - Old Age Medical Care: For Insured Person retiring on attaining the age of superannuation or under VRS/ERS and person having to leave service due to permanent disability insured person & spouse on payment of Rs. 120/- per annum. - Rajiv Gandhi Shramik Kalyan Yojana - This scheme of Unemployment allowance was introduced w.e.f. 01-04-2005. An Insured Person who become unemployed after being insured three or more years, due to closure of factory/establishment, retrenchment or permanent invalidity are entitled to :-Unemployment Allowance equal to 50% of wage for a maximum period of upto one year.Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives unemployment allowance.Vocational Training provided for upgrading skills - Expenditure on fee/travelling allowance borne by ESIC.

An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers wages, whereas, they are provided social security benefits according to individual needs without distinction.

Cash Benefits are disbursed by the Corporation through its Branch Offices (BOs) / Pay Offices (POs), subject to certain contributory conditions.

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Due Date Act Form Description

07/12/2012 TDS e-payment Month for Nov-12

15/12/2012 Provident Fund Electronic Challan cum Return (ECR)

E-Payment of PF for Nov-12 ( Cheque to be cleared by 20th)

21/12/2012

31/12/2012

ESI

P. Tax

ESI Challan

Challan

Payment of ESI of Nov-12

Month for Nov-12

TODO LIST - SEPTEMBER 2012

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LATEST CASE LAWS

Appellant company issued a notification inviting applications from workmen for selection process to undergo a two year long period as an Officer Trainee Notification stated that after the successful completion of the said two years, the trainees were to be designated as Junior Executive Officers - 1st respondent trade union filed a complaint u/s. 28 of the Act for unfair labour practices challenging the notification on the ground that though the designation of Junior Executive Officer was that of an officer belonging to the management cadre, in fact it was merely a nomenclature, with negligible content of managerial work - Labour Court allowed the complaint holding that the nature of work to be performed by Officer's Trainee, showed that there was breach of cl. 7 of the Settlement entered into between the parties and as such, 1st respondent had succeeded to prove the unfair labour practice under Item 9 of Schedule IV of the Act - Appellant challenged the Labour Court order before the HC - Single Judge dismissed appellant's writ petition - Appellant's appeal before the DB also dismissed thereafter - Whether the appellant management had practiced any unfair labour practices in its organization - Held, management of the company was not prevented from rearranging its business in the manner it considered best, if in the process it did not indulge in victimisation - In the instant case no allegation of victimization had been made by the respondent-union in its complaint - In the absence of any allegation of victimization it was rather difficult to find out a case of unfair labour practice against the management in the context of the allegations in the complaint - It was nobody's case that the management was punishing any workmen in any manne- Further, no workmen of the appellant-company had made any complaint either to the management or to the union that the management was indulging in any act of unfair labour practice - Both the Labour Court and the HC failed to take into consideration that the workers voluntarily applied for the promotion scheme pursuant to its introduction - Nowhere had the Labour Court or HC been alleged by the workers that any force or pressure was brought upon them to apply - In the instant case no malafide had been alleged against the appellant company- Nor it was anybody's case that as a result of reorganization of its working pattern by introducing the scheme of promotion any person was either retrenched or was rendered surplus - Hence impugned HC order was set aside Appeal allowed.

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Important judgment from Supreme Court

Siemens Ltd Vs. workman




Back-wages on reinstatement is not a rule. Ref. - LLR Del. HC 1200

Prosecution under CLRA Act, not launched within three months, to be quashed. Ref. - LLR Pat. HC 1192

Gratuity, if not paid by contractor, principal employer will pay.

Ref. - LLR Mad. HC 1160

Rs.5 lakh cost to be paid by Provident Fund officials for harassing the employer.

Ref. - LLR All. HC 1221

Transferring low paid employee far away not justified.

Ref. - LLR P&H HC 1146

Deliberate refusal of work results into loss of confidence.

Ref. - LLR Del. HC 1176

Unsatisfactory past conduct of a workman adds to the gravity of charge.


Staying away from work, without availing leave, not justified.

Ref. - LLR AP HC 1162

Reinstatement appropriate when transfer is illegal.

Ref. - LLR P&H HC 1146

Disablement of workman for work he was capable to perform before accident would be total.


Dismissal for insubordination is not disproportionate punishment.


Management can prove misconduct before Labour Court.


Minimum Wages Act is Authority empowered to decide claim for lesser wages.

Ref. - LLR Jhar. HC 1211

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