APPLICABILITY OF THE ACT

• Two units will be treated different and distinct for the applicability of Employees' Provident Funds Act when there is no inter-connection between them.
B, Gannpathy Bhandarkar vs. Regional Provident Fund Commissioner, Bangalore, (1994) III LLL) (Supp) 1193: 1990 LLR 147 (Karn HC).


• Petitioner engaged in manufacturing of eatables and selling them at the counter

After getting these articles manufactured from such needy women coming Lo the petitioner - Who get themselves registered as an associate members of payment of Rs. 2 as subscription fee - Such members are paid on daily rate or piece rate basis 

• Not entitled to attend meeting of the mandal or to vote or contest election of the mandal - Liable to be terminated by the office-bearers - Held, status of such associate members was that of an employee and, therefore, the provisions of the Act rightly applied to the establishment - Petition dismissed.
Shree Kutchi Visha Oshwal Mahila Mandal vs. Union of India, (1993) 1 LLJ 77: 1992 LLR 584: 1992(65) FLR 72 (Bom HC).


• Regional Provident Fund Commissioner holding that petitioner - Company was employing more than 20 employees and was, therefore, covered by the provisions of the Act. The decision of the Regional Provident Commissioner cannot be challenged in the High Court. Petition dismissed.
Skalini Damdar NiKarn vs. India United Mills, (1993) 66 FLR 47: (1993) 1 LLJ 793:1992 LLR 850 (Bom HC).


• Petitioner owned two factories one in Kerala and another in Tamil Nadu - Regd. Office and activities carried on by both have been the same - Balance sheet, income and expenditure account common for both - Transfer of cash from Tamil Nadu to head office and vice-versa - Same Managing Director, Finance Manager and Secretary empowered to operate bank aCCOlmt of both - But have separate licenses - Whether factory in Tamil Nadu is an establishment of the factory in Kerala? Yes.
Eddy Current Contracts(India) Ltd. v. Regional Provident Fund Commissioner, (1993) 67 FLR 928: (1993) 2 LLN 439: (1994) 1 LLJ 552: 1993 LLR 961 (Ker HC).


• Establishment having different department or branches at different places ­Whether all such branches constitute part of the same establishment for purpose of applicability of the Act? Yes - Determinative tests also laid down.
Eddy Current Controls (India) Ltd. v. Regional Provident Fund Commissioner, (1993) 67 FLR 928: (1993) 2 LLN 439: (1994) 1 LLJ 552: 1993 LLR 961 (Ker HC).


• Three schools, Nursery, Primary and High School, established by and functioning under the same Management are to be treated one for the purposes of applicability of the Act.
Sri Narayana Guru English Medium School Alake, Kudroli Mangalore v. Regional Provident Fund Commissioner, Mangalore, 1997 (3) LLN 585 (Kar HC).


• When the establishment as covered under the Act is closed down on 7-9-1988 and the last employee left 21-4-1989, the provisions of the Act would cease to apply to the establishment after 21-4-1989. Also in the absence of employees and no wages being paid, the provision under the Act will be applicable.
Purex Laboratories v. The Regional Provident Commissioner, (1998) 1 CLR 295: 1997 LLR 13: (1998) 1 LLJ 780: ILR 1997 Kar 13.


• For applicability of EPF & MP Act an establishment its profit or no profit motive is immaterial.
Padiyur Sarvodaya Sangh represented by its Secretary, R. Gnanasigamani Ponniah v. Union of India (represented by Secretary, Ministry of Labour), New Delhi, 1999 LLR 551: 1999-II LLN 224 (Mad HC).


• Employees' Provident Funds Act will apply to an establishment from the date of its commencement and not from the date when the electric power connection was given to new manufacturing unit.
Gem Properties Pvt. Ltd. v. Regional Provident Fund Commissioner, (1999) 4 LLN 1068: 1999 LLR 360: 1999 (82) FLR 414 (Kar HC).


• Merely the printed papers showing Head Office Kota of a school located in district Ajmer are not sufficient to club an establishment with another for applicability of Employees' Provident Funds & Miscellaneous Provisions Act.
Emmanual Public School Society v. The Regional Provident Fund Commissioner, (2000) 86 FLR 814: (2000) 3 CLR 673: 2000 LLR 1268 (Raj HC).


• Consultants providing experts services will be counted for applicability of Employees' Provident Funds Act.
Gain Financial Consultants (Pvt. Ltd., Bombay v. Regional Provident Fund Commissioner, Bombay, (2001) 90 FLR 1096: (2001) 2 LLJ 1050: (2001) 2 CLR 853: (2001) 4 LLN 272: 2001 LLR 1103 (Bom HC).


• Coverage of a hospital under the Employees' Provident Fund, wherein more than 20 employees were found working on physical verification, cannot be faulted with since it is immaterial whether the employees kept on changing or that they were employed to tide over any temporary emergency of excess work hence' the High Court will not interfere with the orders of the Authorities under the Employees' Provident Funds & Miscellaneous Provisions Act.
Midland Hospital and Research Centre (Pvt.) Ltd. v. Union of India, (2004) II CLJ 632: 2004 LLR 431 (Gau HC).


• An employer, employing 19 persons besides 3 trainees, will be liable to be covered under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 notwithstanding that no contributions will be payable for the trainees who were engaged prior to 1988 when the trainees were covered under the Act by virtue of amendment to section 2(f) of the Act.
Dr. Navnilal K. Shah v. Union of India, (2004) 1 Mah LJ 984: 2004-1 LLJ632 (Bom HC).


• Coverage of an advocates firm by the Employees' Provident Funds Act under the head of 'attorneys' will not be justified since the Advocates Act has deleted the 'attorneys',
Acme Company v. Union of India, 2004 LLR 1054 (Del HC).


• Extending of Employees' Provident Funds on non-nationalized banking companies will be arbitrary. 
Karnataka Bank Ltd. Mangalore v. Union of India, 2006 LLR (SN) 1279 (Karn HC).


• Coverage of an amusement park under the Provident Funds Act without ascertaining the 'head' will not be legal.
Polo Amusement Park Ltd. v. EPF Applt. Tribunal, 2008 LLR 411 (Del HC).


• Growing flowers with advanced technology will attract Provident Funds coverage.
Vasavi Florex, Kolur Village, Doddaballapur v. Regional Provident Funds Commissioner, Banglore, 2008 LLR 153 (Karn HC).


• Employees' Provident Funds Scheme comes within the purview of Consumer Protection Act, 1986.
Regional Provident Fund Commissioner v. Bhavani, 2008 LLR 661 (SC).


• Provident Fund Act will be applicable upon the 'expert services'.
Panther Security Services Pvt. Ltd. v. Employees Provident Fund Organization, Kanpur Nagar, 2009 LLR 94 (All HC).


• Provident Fund Act would be applicable to a welfare society also.
Bengal Services Society (School) v. Regional Provident Fund Commissioner, W.B., 2009 LLR 196 (Cal HC).



P F Act

P F Act

  • EPFO Launched new Grievance Management Portal


    • Enhancement of the cash benefit on Pension:

  • Enhanced the cash benefit payable to the family of EPF subscribers on their death in service from present maximum of rs.60,000 to rs.1.00 lakh. Published in the gazette of india, part ii, section 3, subsection (i), vide number g.s.r. 523(e), dated the 18th june, 2010
  • Download Notification


    • EPF(Amendment) Scheme, 2011


    MINISTRY’ OF LABOUR AND EMPLOYMENT
    NOTIFICATION
    New Delhi, the 15th January, 2011

    G.S.R. 25(E).—In exercise of the powers conferred by Section 5, read with sub-section (1) of Section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees’ Provident Funds Scheme, 1952. namely

    1. (1) This Scheme may be called the Employees’ Provident Funds (Amendment) Scheme, 2011.

       (2) It shall come into force from the 1st day of April, 2011

    2. In the Employees’ Provident Funds Scheme, 1952, (hereinafter referred to as the said Scheme), in paragraph 60, after sub-paragraph (5), the following sub-paragraph shall be substituted, namely:—

    “(6) Interest shall not be credited to the account of a member from the date on which it has become Inoperative Account, under the provisions of sub-paragraph (6) of paragraph 72”

    3. In the said Scheme, in paragraph 72, in sub-paragraph (6):—

       (a) for the words “but no claim has been preferred” the words “but no application for withdrawal under paragraphs 69 or 70 or transfer, as the case may be has been preferred ” shall he substituted:

       (b) for the words “three years”, at both the places where they occur, the words “thirty six months” shall be substituted.

        [F. No. S-35012/01/2010-SS-1I]
    S. K.. DEV  VERMAN, Jt. Secy.

    For more details :
    The PF old balance will stop earning interest. After three years of inactivity.
  • Download Notification

    • ESIC

    Employees’ State Insurance (Amendment) Act, 2010.


    Following are the some salient feature of the ESI (Amendment) Act, 2010.
    Extension Of The ESI Scheme To The Construction Site WorkerS :

  • The Construction site workers who were kept out of coverage of ESI act till date, Now covered with the implementation of it roll out "any time, anywhere". esic services will be available to these mobile and migratory workers with no geographical barrier.


    • APPRENTICES COVERED:

  • Benefits under the scheme have also been extended to apprentices and trainees employed under Apprentice Act and Standing Order Act.


    • POWER TO APPROPRIATE GOVERNMENT;

  • The appropriate Government is empowered to extend the provisions of ESIC Act 1948 to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise after giving one month’s notice of its intention of doing so by notification in Official Gazette instead of notice period of six months.


    • DEFINITION OF DEPENDENT EXPANDED:

  • Definition of “dependents” as contained in clause 6A of section 2 of the Act has been extended to enlarge the number of beneficiaries under the act such as:
  • A widow, a legitimate or adopted son below the age of 25 years and an unmarried legitimate or adopted daughter. The age limit of the dependants has been enhanced from 18 to 25.

  • Dependent parents as per definition of “family” has been substituted so as to include;

    • “A minor brother or sister wholly dependent upon the earnings of the insured person in case the insured person is unmarried and his or her parents are not alive”. It has been also clarified that dependent parents to include “Dependent parents, whose income from all sources does not exceed such income as prescribed by the Central Government”.

    SMALL FACTORIES ALSO ARE COVERED:

  • The definition of Factory under Section 2(12) has been amended to expand coverage of smaller factories. The amended Act covers all factories, which employ 10 or more persons irrespective of the fact whether the manufacturing process is being carried out with the aid of the power or without the aid of the power.


    • INSPECTORS RE-DESIGNATED AS SOCIAL SECURITY OFFICERS:

  • The designation of Inspector has been re-designated as “Social Security Officer” to enroll them as facilitator of the Scheme rather than to act as mere inspectors.


    • VRS EMPLOYEES ALSO COVERED:

  • Medical benefits to the insured person and his spouse have been extended under circumstances where insured person retires under Voluntary Retirement Scheme or takes premature retirement. In the earlier Act the benefit was applicable only on attaining the age of superannuation. Proviso to sub section 3 of section 56 has been substituted to provide the same.


  • NOTIONAL EXTENSION OF PREMISES:

  • Accident occurring to an insured person while commuting from his residence to the place of employment and vice-a-versa shall be deemed to have arisen out of and in the course of employment for the purpose of benefit under the Act. A new section 51-E has been added for this purpose.


    • UNORGANIZED SECTOR EMPLOYEES COVERED:

  • A new Chapter V-A has been added to enable provision for extending medical care to non insured persons against payment of user-charges to facilitate providing medical care to the below poverty line (BPL) families and other un-organized sector workers covered under the Rashtriya Swasthya Bima Yojana (RSBY).


  • Exemption of a factory or establishment or class of factories or establishments from the operation of this Act will be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.


  • Section 91 A of the Act is amended to removing. retrospective grant of exemption from the provision of the Act
  • Download ESI (Amendment) Act 2010


    • ESIC ONLINE PORTAL:

  • ESIC Launched New Online Portal for Submitting Application and Returns


    • ESI WAGE CEILING:

  • ESI WAGE CEILING ENHANCED FROM Rs. 10000 TO Rs. 15000 w.e.f 01-05-2010
  • Download ESI Wage Ceiling Notification

    •
    Minimum Wages

    AP MINIMUM WAGE

    SECURITY SERVICES :
  • Zone I:All Municipal Corporations
  • Zone II : All Municipalities
  • Zone III : Rest of the area


  • Highly Skilled :
    • (Security Supervisor/ Officer/ Field Officer)

    Z-I: 7500, Z-II: 6500,Z-III: 5000

  • Skilled :
    • (Security Inspector/ ASO/ Intelligance and Fire Fighting Personal, Head Gaurd)

    Z-I: 7000, Z-II: 6000, Z-III: 4500

  • Semi-Skilled :
    • (Asst. Security Inspector /Security Gaurds with Arms)

    Z-I: 6500, Z-II: 5500, Z-III: 4250

  • Un-Skilled :
    (Security Gaurds without Arms)

    • Z-I: 5000, Z-II: 4250, Z-III: 4000


    CONTRACT LABOUR :

    Andhra Pradesh contract labour minimum wages are revised w.e.f 18 aug'09 as:
  • Un-Skilled: Rs. 155 per day, Rs. 4030 per month

  • Semi-Skilled: Rs. 195 per day, Rs. 5070 per month

  • Skilled: Rs. 235 per day, Rs. 6110 per month
    •

    I D Act 2010

  • Enhancement of wage ceiling of a workman from Rs. 1600/- pm to Rs. 10000/- pm under section 2(s) of the Act

  • Direct access for the workman to the Labour Court or Tribunal in case of disputes arising out of section 2A of the Act

  • Expanding the scope of qualifications of Presiding Officers of Labour Courts or Tribunals under sections 7 and 7A of the Act
  • Establishment of Grievance Redressal Machinery in every Industrial establishment employing twenty or more workmen for the resolution of disputes arising out of individual grievances

  • Empowering the Labour Court or Tribunal to execute the awards, orders or settlements arrived at by Labour Court or Tribunal
  • Link to ID Act (Amnd) Act, 2010

    •

    HR Info.in

    Hr Info.in

    Workmen's compensation Act, 2010

    Given below are the synopsis of the changes.

  • THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009 and wherever "workman" or "workmen" is mentioned in the entire Act the same needs to be read as "Employee" to make it gender sensitive.


  • The compensation payable on death from the injury, is (i) minimum of Rs.80000 is increased to Rs.120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.


  • The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied by the relevant factor.


  • actual reimbursement of medical expenses incurred on account of injury caused during course of employment.


  • Empower the Central Government to specify monthly wages for the purpose of compensation. It is 50% of Rs.8000/-. This amendment is notified vide Central Government Notification No. S.O. 1258(E) vide Ministry of Labour & Employment dated 31st May 2010.


  • Definition of workmen replaced by "Definition of Employee"- also now includes CLERICAL employees.


  • The Commissioner shall dispose compensation cases within a time period of 3 months.
  • Download Emploee's Compensation (Amnd) Act, 2010
  • Download Emploee's Compensation Wage Limit Notification

    •