CLUBBING OF ESTABLISHMENTS

• In order to club three different units for the applicability of Employees' Provident Fund Act, there has to be mutual dependence by one upon the others.
Majestic Trading House v. Union of India, 1990 LLR 394 (All HC).


• Three concerns separately owned by three members of one family situated in the same premises will not be treated and/or clubbed together as one establishment to attract the applicability of the Act.
Khoja Lime Udyog v. RP.F. Commissioner, (1992) 1 LLJ 903: 1991 LLR 201: 1991 (62) FLR 252 (Raj HC).


• Whether an establishment consists of different branches or has establishments ¬Whether situated in the same place or in different places - All such departments or branches shall be treated as part of the same establishment - But does not provide for different establishments. Whether clubbing of four firms separately registered under Sales Tax, Shops & Estts. Act and separately assessed under the Income-tax Act justified? No.
Sunder Transport v. The Regional P.F. Commissioner, (1993) 66 FLR 528: (1993) 1 LLJ 810: 1993 LLR 165 (Bom HC).


• Functional integrality - Question as to existence of functional integrality ¬Between two units under one owner - Determinative test mere co-ownership by itself not sufficient for functional integrality.
Ebrahim Currin & Sons v. The Regional Provident Fund Commissioner, Maharashtra and Goa, (1993) 67 FLR 1124: 1993 UC 1740: 1993 LLR 916 (Bom HC).


• Two different establishments will not be clubbed together for applicability of Employees' Provident Fund Act merely because they carryon business at the same place.
Evans Food Corporation v. Union of India, (1994) LIC 1439: (1994) 1 LLN 761: (1994) 69 FLR 74: (1994) 84 FLR 400: 1994 LLR 569 (Ker HC).


• Mere common ownership of two establishments will not justify their clubbing under Employees' Provident Funds and Miscellaneous Provisions Act.
Devesh Sandeep Associates v. Regional Provident Fund Commissioner, (1997) 2 LLN 867: (1997) 1 CLR 273: (1997) 1 FLR 35: 1997 LLR 137 (Karn HC).


• Establishments of 22 tenants working as diamond cutters/polishers in the same building will not be clubbed.
Harshad Kumar M. Patel v. K.CD. Gangawani, (1997) 1 CLR 857: (1997) 2 LLN 220: (1996) 2 Guj LR 67: 1997 LLR 595 (Guj HC).


• Clubbing of school of speech and its branches as part of the same establishment will be justified since the petitioner had got full control over the branches and there is no independence and financial integrality between the petitioner and the branches.
E. Gajendran v. Regional Provident Fund Commissioner, Karnataka, Bangalore, 1997 II CLR 1193 (Karn HC).


• Three schools functioning under the same Management will be treated one entity for coverage under Employees' Provident Funds & MP Act.
Sri Narayana Chiru English Medium School Alake, Kudroli, Mangalore v. Regional Provident fund Commissioner, Mangalore, 1998 LLR 38 (Karn HC).


• Two establishments separately registered under Shops & establishments Act can be clubbed together for coverage under EPF & MP Act.
Kiltari Colouring Factory v. Regional Provident Fund Commissioner, (2000) 1 LLJ 1041: 2000 LLR 169 (Del HC).


• Three units of a company cannot be clubbed together in the absence of functional integrality.
Maharashtra General Karngar Union v. Indian Gum Industrial Ltd., (2000) 86 FLR 533: 2000 LLR 948 (Bom HC).


• Common ownership and similar manufacturing activity will not be decisive factor to club the establishments for applicability of EPF & MP Act.
Niton Industries v. Union of India, (2000) 85 FLR 536: (2000) 1 LLJ 1518: 2000 LLR 599 (Bom HC).


• A restaurant and the hotel in the same premises will be clubbed together by applying the principles of functional integrality.
Hotel Mahaveer v. The Regional Provident Fund Commissioner, 2002 LLR 75 (Karn HC).


• There will be functional unity and integrality between two establishments e.g. Hamdard (Wakf) Laboratory (India) and the Institute (Respondent No.4) since some employees have been transferred from the Wakf to the Institute and their EPF contributions were deducted by the Institute and deposited with the Wakf hence the institute will be coverable under the EPF & MP Act from the date of its set up.
Hamdard (Wakf) Laboratory (India) v. KL. Sehgal, Regional Provident Fund Commissioner, (2003) 98 FLR 61: (2003) 103 FLR 399: 2003 LLR 715: 2003 (98) FLR 61 (Del HC).


• Unity of ownership, functional integrality and interlinking etc. is further proved since land of the institute belonged to the Wakf, electricity bills were paid by the Wakf and a printing press belonging to the Wakf was being nm in premises of the Institute.
Hamdard (Wakf) Laboratory (lndia) v. KL. Sehgal, Regional Provident Fund Commissioner, (2003) 98 FLR 61: (2003) 103 FLR 399: 2003 LLR 715: 2003 (98) FLR 61 (Del HC).


• Merely because the Regional Provident Fund Commissioner has written a latter to the Institute that it is liable to be covered under the EPF & MP Act and also a separate code number was allotted to the Institute will not make it a separate entity to seek, exemption and/or non-applicability of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 from the dale of its set up.
Hamdard (Wakf) Laboratory (India) v. KL. Sehgal, Regional Provident Fund Commissioner, (2003) 98 FLR 61: (2003) 103 FLR 399: 2003 LLR 715: 2003 (98) FLR 61 (Del HC).


• Even when the two establishments are governed by different Acts e.g. one by Muslim Wakf Act and the other by Societies Registration Act it will not make them separate entities when the activities are inter-linked including unity of management, finance, functional besides supervision and control etc.
Hamdard (Wakf) Laboratory (India) v. K.L. Sehgal, Regional Provident Fund Commissioner, (2003) 98 FLR 61: (2003) 103 FLR 399: 2003 LLR 715: 2003 (98) FLR 61 (Del HC).


• Two restaurants will be clubbed for covering under the Employees' Provident Funds when there is functional integrality, geographical proximity, unity of ownership and inter-dependence.
Kaka's Restaurant v, Sh, K.L. Sehgal, Regional Provident Fund Commissioner, Delhi, (2003) 105 DLT 85: (2003) 3 LLN 582: (2003) III LLJ436: 2003 LLR 839 (Del HC).


• Clubbing of three units being run at one place with unity of Management, supervision, control, financial integrality and geographical proximity, as one unit for coverage and demand for provident fund contributions, as made by the Regional Provident Fund Commissioner, cannot be set aside in the writ petition.
Mohan Bro/hers v. Regional Provident Fund Commissioner, (2003) 2 CLR 752: (2003) 103 FJR 409: (2003) III LLJ 424: 2003 LLR 856 (Del HC).


• Clubbing of two shops with the factory for coverage under the Employees' Provident Funds & Miscellaneous Provisions Act will not be justified when two shops at Mangalore and Bangalore had 6 employees and were maintaining independent and separate account books, balance sheets and trading accounts. Hence, there was neither any financial nor any functional dependency between the factory and the two shops. .
Regional Provident Fund Commissioner, Mangalore v. B. Ganapathy Bhandarkar, 2003 LLR 1022: 2003 (98) FLR 987 (Karn HC).


• Merely that a hotel and a restaurant have a common counsel and telephone, will not justify clubbing of both for Provident Fund Act.
Hotel Yamuna Villa, a Partnership Firm through its Partner Subodh Kumar Singh v. Regional Provident Fund Commissioner, Sub-Regional Office 'C' and 'D' Block, 2006 LLR 388 (Jhar HC).


• Two establishments, having no inter-dependence, cannot be clubbed for coverage under the Provident Funds Act.
C.L. Khanna v. Union of India, 2007 LLR (SN) 329 (Del HC).


• Clubbing of two non inter-dependent units for coverage under the EPF will not be legal.
Regional P.F. Commissioner v. EPF Appellate Tribunal, 2007 LLR 350 (Del HC).


• When one establishment was under the control of husband and the other with partnership of his wife, both are rightly clubbed for coverage under Provident Funds Act.
Regional Provident Fund Commissioner v. Nath Traders, 2007 LLR 378 (Del HC).


• Merely because the proprietor of one concern was Managing Director of the other unit will not justify for coverage under Provident Funds Act.
Regional Provident Fund Commissioner v. M/s. Raj's Continental Exports (P) Ltd., 2007 LLR 642 (SC).


• Unless there is evidence of any financial or managerial control, it could not be said that one was the branch of other establishment.
Regional Provident Fund Commissioner v. M/s. Raj's Continental Exports (P) Ltd., 2007 LLR 642 (SC).


• Coverage of three establishments for provident funds would be appropriate when there is functional integrality amongst them.
Times Publishing House Ltd., Jaipur v. Regional Provident Fund Commissioner, 2007 LLR 842 (Raj HC).


• Clubbing of two establishments for coverage under Provident Fund when copies of reports were riot furnished to the employees.
Small Gauges Ltd. v. V.P. Ramaiah, Regional Provident Fund Commissioner, Pune, 2009 LLR 28 (Bom 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

    •