AUG2014

As part of the Compliance Calendar, Professional

Tax is due in Andhra Pradesh, Madhya Pradesh,

Karnataka, West Bengal, Maharashtra, Assam and

Kerala among other compliance requirements.

The Honourable Supreme Court has held that

artificial breaks in service are tantamount to 'unfair

labour practice'. The Honourable Punjab and

Haryana High Court have held that the termination of

a workman appointed for a fixed term is not illlegal.

The Court has also held that the employee of a

licensed contractor cannot raise a claim upon the

principal employer. The Honourable Delhi High

Court has pronounced that an employee employed

even for one day is to be counted for coverage under

Provident Fund Act. The Honourable Madras High

Court has held that Gratuity Act overrides all other

enactments.

The Ministry of Labour and Employment has

proposed certain amendments to the Factories Act,

1948, the Minimum Wages Act, 1948, the Child

Labour (Prohibition and Regulation) Act, 1986 and

the Labour Laws. The Centre may carry out

amendments to the Apprentice Act 1961 to drive

apprenticeship. The Delhi government has directed

employers of organised and unorganised labourers

to pay their employees' wages through cheque or

electronic mode. Construction companies and

developers will face cancellation of license if they do

not pay applicable minimum wages. Ministry of

Labour & Employment has signed a Memorandum

Of Understanding with Employee State Insurance

and Provident Fund Organisation for implementing

activities in the year 2014-2015.

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@adp.com

Hello Readers,Compliance Calendar for Aug 2014 02

PAGES

03Termination of a workman appointed for a fixed term is not illegal

Artificial breaks in service tantamount to 'unfair labour practice'

Employee of licensed contractor cannot raise claim upon principal employer

An Employee employed even for one day is to be counted for coverage under Provident Fund Act.

Gratuity Act overrides all other enactments

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News to note

Government proposes amendments to four labour laws

Centre may tweak bill to push apprenticeship

Pay labourers through cheque or e-transfers

Construction Companies Warned on Minimum Wages

How to get a digital signature

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Important Judgments

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Compliance Calendar for the month of Aug 2014

10th Aug 14

15th Aug 14

20th Aug 14

21st Aug 14

31st Aug 14

Andhra Pradesh & Madhya Pradesh

Gujarat

By Challan

By Challan

By Challan

By Challan

By Challan

Karnataka

West bengal

Maharashtra, Assam, Orissa

State Wise regulations

Gujarat PT regulations

Karnataka PT regulations

WB PT regulations

State Wise regulations

31st Aug 14 Karnataka Karnataka PT regulations On line

20th Aug 14 Kerala State Labour Welfare By Challan

Labour Welfare Fund Remittances

15th Aug 14 Central - Remittance of Contribution EPF & MP Act 1952 By Challan

15th Aug 14 Central - International worker with wages and nationality EPF & MP Act 1952 Statement in IW 1

21st Aug 14 Remittance of Contribution(Main code and Sub Codes) ESIC Act 1948 By Challan

ESI

Due Date Activity Due Under Mode

Professional Tax Remittances

PF

PAGE 03

TERMINATION OF A WORKMAN APPOINTED FOR A FIXED TERM IS NOT ILLEGAL In a case of Vijay Kumar Vs Industrial Tribunal Bhatinda and others, the honourable Punjab & Haryana High

Court through the verdict by honourable justices Mr. Sandhawalla pronounced that the termination of services

of a workman, appointed on contractual basis for a fixed term is not illegal retrenchment in violation of section

25F of Industrial Dispute Act, 1947 as it has protection under sec 2(00)(bb) of the act.

When contractual employment has protection under sec 2(00)(bb) of the Industrial Dispute Act, 1947,

termination of services of the workman would not be in violation of sections 25G and 25H of the Act.

ARTIFICIAL BREAKS IN SERVICE TANTAMOUNT TO 'UNFAIR LABOUR PRACTICE'In an extraordinary case of Bhuvanesh Kumar Dwivedi Vs M/s

Indalco Industries Ltd, the Honourable Supreme Court under its

bench comprising the Honourable justices Mr. Gyan Sudha

Mishra and Mr. V Gopala Gowda pronounced that the artificial

break in service every year by reappointing the employee on the

same post with same badge number and I.D number

tantamount to unfair labour practice under section 2(ra) of the

Industrial Dispute Act, 1947.

When the repeated artificial periodical breaks in service are

proved, the termination of services of the workman would not

have protection of Section 2(00)(bb) of the act, which would

attract relief of reinstatement with full back-wages being illegal

retrenchment.

For entitlement of back-wages, burden of providing that the

workman was gainfully employed lies upon the employer, failing

which the workman would be entitled with back-wages.

EMPLOYEE OF LICENSED CONTRACTOR CANNOT RAISE CLAIM UPON PRINCIPAL EMPLOYERIn a case of Charan Singh Vs Presiding Officer, Industrial Tribunal-cum-labour Court II, Gurgaon and Another,

the Honourable Punjab & Haryana High Court through the verdict by Honourable Justices Mr. Sandhawalla

pronounced that when the application seeking employment, appointment letter, wage register, maintained by

the contractor, shows that the workman was employed by the contractor, who was having valid license under

the Contract Labour (Regulation & Abolition) Act, the workman's claim against the principal employer is not

sustainable.

When the workman has not produced any independent evidence in support of his claim that he was employee

of the principal employer, his claim against principal employer is not maintainable.

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AN EMPLOYEE EMPLOYED EVEN FOR ONE DAY IS TO BE COUNTED FOR COVERAGE UNDER PROVIDENT FUND ACT.In a peculiar case of DSOI through its society Vs Employee's Provident Fund Organisation, the honourable Delhi High court under honourable justice Mr. V. Kameswar Rao pronounced that the definition of 'employee' as provided under section 2(f) of Employee's Provident Fund and Miscelaneous Provisions Act, 1952, read with clause 26(2) of the scheme does not exclude 'casual employee' even employed for one day or for more than one day, in or in connection with the work of the establishment against wages, from the coverage of the act.

GRATUITY ACT OVERRIDES ALL OTHER ENACTMENTSIn a case of Commissioner, Idappadi Municipalilty, Idappadi, Selam Vs Joint Commissioner of Labour, the appellate authority under the Payment of Gratuity Act, Coimbatore & others the Madras High Court under honourable Justice Mr. Hariprananthaman pronounced that there is no distinction between permanent or temporary or substitute employee under the Payment of Gratuity Act.

Exemption from payment of gratuity is only in respect of apprentice engaged under the Apprentice Act, 1961. The words 'any person' under Payment of Gratuity Act clearly imply that all employees including casual, temporary and / or substituted, are entitled to gratuity under the act. Even apprentices not engaged under Apprentice Act, 1961 are entitled to gratuity.

The Ministry of Labour and Employment has proposed certain amendments to the Factories Act, 1948, the Minimum Wages Act, 1948, the Child Labour (Prohibition and Regulation) Act, 1986 and the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988. The Ministry has invited comments from stakeholders on the proposed amendments to Minimum Wages Act, 1948 by June 30, 2014, Factories Act, 1948 by July 4, 2014 and Child Labour Act, 1986 by July 15, 2014 and Labour Laws Act, 1988 by July 22, 2014.

Key features of the proposed amendments are:

Factories Act, 1948: The owner or manager of a factory should ensure that the factory's expansion does not involve any hazard to the workers' safety and workers involved in hazardous processes have protective equipment and clothing. Adult women (except those who are pregnant or disabled) will now be allowed to work on moving machinery. The state government may allow women to work during night shifts.

Minimum Wages Act, 1948: The central government will revise the National Floor Level for Minimum Wages every five years, and update it every six months in line with consumer price inflation. State governments have to link minimum wages to inflation or revise them every two years. State governments are also obliged to fix minimum wages for all professions.

GOVERNMENT PROPOSES AMENDMENTS TO FOUR LABOUR LAWS

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Child Labour Act, 1986: The Child Labour (Prohibition and Regulation) Amendment Bill, 2012 is currently pending

in Rajya Sabha and the Standing Committee on Labour has submitted its report on the Bill. The Ministry has now

accepted two of the Standing Committee's suggestions: (i) to regulate the work of children in the entertainment

industry, and (ii) parents of adolescents working in hazardous occupations should not be punished in the first

instance, only repeat offenders.

Labour Laws Act, 1988: The Act exempts small establishments from filing returns and maintaining registers as

required by certain labour laws. The Labour Laws (Amendment) Bill, 2011 is currently pending in Rajya Sabha and

the Standing Committee on Labour has submitted its report on the Bill. The Ministry has now accepted some of the

Standing Committee's recommendations. These include: (i) allowing records to be maintained and submitted in

either physical or electronic form, (ii) changing the period and last date for submission of annual returns, and (iii)

including the names and addresses of employees/workers in annual return forms.

CENTRE MAY TWEAK BILL TO PUSH APPRENTICESHIPThe amendment to the Apprentice Act, 1961 which is approved by the cabinet will be the fist pending amendment to be taken up. It will bring hope to nearly a million unemployed, unskilled young citizens of India.

The Apprentice Act is key to component of the National Skill Development Program. It had been delayed because the government had to incorporate certain changes suggested by the industry.

PAY LABOURERS THROUGH CHEQUE OR E-TRANSFERSThe Delhi government has directed employers of organised and unorganized labourers to pay their employees' wages through cheque or electronic mode to keep a tab on payment records and take action against errant employers. The labour department had also directed employers including contractors to upload employee details like category, nature of work, bank account numbers and payment details on their web sites, and they are given 90 days time for compliance. Employers have also been asked to discourage deployment of contract workmen.

CONSTRUCTION COMPANIES WARNED ON MINIMUM WAGESConstruction companies and developers will face cancellation of license for not paying applicable minimum wages. Noticing large scale violations of its minimum wages order, the labour department of Delhi Government has issued another order making it mandatory for all companies and contractors to pay minimum wages by cheque or electronic cash transfer to workers and declare it on the website of companies.

All Joint Labour Commissioners have been made responsible for ensuring that the orders are complied with. Transaction between employee and employer will be verified when Licenses under CLRA Act, 1970 are renewed and if violations are found, the license will be cancelled.

Ministry of Labour & Employment signs a Memorandum Of Understanding with Employee State Insurance and Provident Fund Organisation for implementing activities in the year 2014-2015 (Provide attachment access provision)

HOW TO GET A DIGITAL SIGNATUREDigital signatures are now increasingly accepted for identification and authentication online It is mandatory for heads of companies to get a digital signature for filing taxes and other documents online.

Digital signatures reduce the possibility of fraud and ensure legal validity for online transactions Once you get your Digital Signature, keep it safely and do not share it with anyone unless you are sure of the website's credential. For more information, e-mail : info@cca.gov.in Website : http://cca.gov.in

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