COVERAGE UNDER THE ACT


Allotment of separate code numbers to different firms for coverage under the Act - Impugned order liable to be quashed.
Sunder Transport v. The Regional PF Commissioner, (1993) 66 FLR 528: (1993) 1 LLJ 810: (1993) 1 LLN 480: 1993 LLR 165 (Bom HC).


Application under - For exemption from the operation of the Act on the ground that the petitioner has started its own beneficial scheme for its employees - No decision taken - Whether the petition is liable to comply with the provisions of the Act? Yes - Till the exemption is granted.
Himachal Pradesh Agro Industries Corporation Ltd. v. Regional Provident Fund Commissioner, 1994 LIC 1280: 1993 LLR 987: 1993-II CLR 505 (MP HC).


The activities carried on by appellant pertaining to equipment leasing and merchant banking are intimately connected with 'goods' and appellant is commercial if not trading-establishment it cannot be said that said activities would fall outside the scope of the Notification dated 7-3-1962 for covering of 'trading and commercial' establishment to be covered under the Act.
Canbank Financial Services Ltd., Bangalore v. Regional Provident Fund Commissioner in Kilmataka, Bangalore, (1997) 3 Karn LJ 361: (1998) 1 LLJ 92: 1997 CLR II 734 (Karn HC).


Employees of the contractor working through contractors in an exempted establishment are to be covered under the EPF Act and the Scheme. The contractors should obtain their Code numbers and also deposit the contributions with the authorities.
Bata India Ltd. v. Union of India, (2001) 2 BLJR 887: (2001) 89 FLR 1092: (2001) 4 LLN 536: (2001) II LLJ 212: 2001 LLR (Sum) (Pat HC).


Beedi rollers engaged through contractor are to be covered under EPF & MP Act.
S.K. Nasiruddin Beedi Merchant Ltd. v. Central Provident Fund Commissioner, (2001) 2 sec 612: 2001 SCC (L&5) 479: AIR 2001 SC 850: (2001) 1 LLN 905: 2001 LLR 263 (SC).


The employees of a Hospital cycle stand engaged through a lessee will be covered under EPF & MP Act.
Santokba Durlabhji Memorial Hospital, Jaipur v. Assistant Provident Funds Commissioner, Jaipur, (2000) 3 CLR 684: (2000) 87 FJR 100: (2000) 3 RLW 1505: (2000) II LLJ 1504: 2001 LLR 68 (Raj HC).


Two schools run by the same society located adjacently at the same address will constitute a single establishment for coverage under Employees' Provident Funds Act.
Noor Niwas Nursery Public School v. Regional Provident Fund Commissioner, 2001 LIC 323: AIR 2001 SC 277: (2001) 88 FLR 533: 2001 LLR 99 (SC).


Starting entirely new business by the purchase of plant and machinery will not be continuity of business for coverage under Provident Funds Act.
Pregati Metal Works v. The Regional Provident Fund Commissioner, (2001) 3 LLN 985: (2001) 3 CLR 67: (2001) 89 FLR 981: (2001) II LLJ 55: 2001 LLR 678.


High Court will not set aside the coverage of a school under the Provident Fund when 20 persons were found as employed by the officials of the EPF Office and also the employer did not rebut the report of the inspector despite opportunity granted to this effect.
Ankur Vidya Mandir, Daloda, Dist. Mandsour v. Regional Provident Fund Commissioner, Indore, (2003) III LLJ 658: 2003 LLR 488 (MP HC).


The Director of the Company, not being an employee of the Company, cannot be taken into consideration for coverage of an establishment under the Employees' Provident Funds & Miscellaneous Provisions Act when exclusive of the Director (s) there were less than 20 employees for attracting the applicability of the Act upon the establishment.
Union of India v. Patna Tyre House Pvt. Ltd., (2004) III LLJ 778: 2004 LLR 468 (Pat HC).


When there has been functional integrality including unity of supervision, finance, managerial control and ownership, etc. etc., the two establishments will be clubbed and cover able under the Employees' Provident Funds & Miscellaneous Provisions Act.
Paranjape Metal Shapers Pvt. Ltd. v. Union of India, 2004 (I) LLJ 672 (Bom HC).


An establishment will be covered under the Provident Funds Act when 22 to 24 employees were found working.
Autocrat Tours v. Regional Provident Fund Commissioner, (2004) II CLR 763: (2004) 106 FJR 392: (2004) 102 FLR 268: (2004) III LLJ 143: 2004 LLR 780 (Del He).


Provident Fund Act will not be extended to a school canteen merely because the space was given by the school.
Ketola Samajam Model School through its Trust In-charge A.P,R. Nair v. Union of India, 2006 LLR 383 (Jhar HC).


Merely that a canteen was being nm in the premises of the school by the contractor, it will not be treated as a unit for extending provident fund.
Kerala Samajam Model School through its Trust In-charge A.P.R, Nair v. Union of India, 2006 LLR 383 Jhar HC).


Coverage of employee under Provident Funds from the day of joining will not be illegal.
Kay Iron Works (Pot.) Ltd. v. Union of India, 2007 LLR 175 (Bom HC).


Mineral water packing industry will not be covered under the Provident Funds Act since it does not come within Schedule I of the Act.
Shivam Aqua Industries Pvt. Ltd. v. Employees' Provident Fund Organization, Patna, 2007 LLR (SN) 323 (Pat HC).


Compensation in lieu of reinstatement would be proper when the workman has worked for 240 days in the preceding 12 months before his termination.
Prakash Budhaji Jadhav v. Bajaj Electricals Ltd., 2007 LLR 418 (Bom HC).


Coverage under Provident Funds is rightly made by including 12 piece-rated workers.
Jaggi & Co. v. Presiding Officer, Employees Provident Fund Appellate Tribunal, 2008 LLR 126 (Del 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