AUG

2014
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
03
Termination 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
03
03
04
04
04
05
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
05
05
05
Important Judgments
PAGE 02
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 EMPLOYER
In 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.
PAGE 04
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 ENACTMENTS
In 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
PAGE 05
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 APPRENTICESHIP
The 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-TRANSFERS
The 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 WAGES
Construction 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 SIGNATURE
Digital 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
PAGE 06
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