DAMAGES - LEVY OF - FOR LATE OR NON-DEPOSIT OF CONTRIBUTIONS


• Levy of damages under section 14B - Delay spread over a period of twenty two years from 1966 to 1987 - Not even once the payment was made in time during all these years - Prayer of condonation of delay in view of regularity of payment at the rate of 25% p.a. for the delayed payment - Writ petition challenged that imposition of damages by respondent No.1 is colourable and mala fide exercise of powers - Whether maintainable? 
No.
Satish Motors (Pvt.) Ltd. (through its Executive Director) Aurangabad v. Regional Provident Fund Commissioner- II, Maharashtra and Goa, Bombay, 1992 LLR 652 (Bom HC).


• Factors to be taken into consideration - While imposing penalty under section 14B. Only those factors which have been mentioned in the order will be taken into consideration.
Cannanore Shop v. Regional P.F. Commissioner, 1992 LIC 2477: (1992) 8 CLR 305: 1995 111 LLJ (Supp) 134: 1992 LLR 667: 1992(65) FLR 714 (Ker HC).


• Procedure for imposing of damages - The authority must take note of several relevant circumstances.
State of Gujarat Textile Mills Ltd.  v. Regional Provident  Fund Commissioner, Ahmedabad, 1993 LLR 210 (Guj HC).


• Levy of damages under section 14B of the Act - Order must be speaking order since it is quasi-judicial order - While imposing damages, the Commissioner shall give reasons in support of his order.
Regional Provident Fund Commissioner, Punjab, Haryana, Himachal Pradesh and Union Territory, Chandigarh v. Taylor Instrument Company (India) Ltd., 1993 LLR 334 (P&H HC).



• Levy of damages under - In respect of defaults committed in deposit of contributions - For the periods between May 1974 and May 1982 - Notice to show cause issued in December 1984 - Whether section 14B provides any limitation for taking action against the defaulters - Whether delay in issuing notice vitiates the proceedings - Held, No.
Mathur Alloy Steels Pot. Ltd. v. The Union of India, (1993) 2 CLR 728: 1993 LLR 886: 1993 Lab IC 1707: 1993(67) FLR 1028 (Bom HC).



• Limitation - Levy of damages after 3 years from the date of deposit of contribution - Delay - If amounts to waiver of right to impose damages? No.
Himachal Pradesh Agro Industries Corporation Ltd. v. Regional Provident Fund Commissioner, 1993 LLR 987: 1993(82) FJR 574 (HP HC).


• Levy of damages - For not making deposit of dues within time for the period from 1.1.75 to 26.2.1976 - Factory incorporated on September 24, 1970 and commenced production in June/July 1971 - Order of levy of damages during infancy period - If liable to be vitiated? Yes.
Himachal Pradesh Agro Industries Corporation Ltd. v. Regional Provident Fund Commissioner, 1994 LIC 1286: 1993 LLR 987: 1993(82) FJR 574 (HP HC).


• High Court will not interfere in levying of damages by the PF Authorities if an employer has failed to deposit the contributions.
New Precision (India) Ltd v, The Regional Provident Fund Commissioner (Indore), 1995 LLR 58 (MP HC).


• Levy of damages for late payment of EPF's Contribution can be mitigated to nil if the same was due to strike, etc., in the factory.
Vegetable Vitamins Foods Company Ltd. v. Regional Provident Fund Commissioner, Maharashtra & Goa, (1995) 70 FLR 1012: (1995) 1 LLJ 1145: (1995) 1 LLN 242: 1995 LLR 244: 1994-II CLR 1062 (Bom HC).


• No damages can be levied if no reason is given for refusal to grant exemption to an establishment under section 17 of the Employees' Provident Funds & MP Act.
Indian Seamless Metal Tubes Ltd. v. Union of India, (1995) 1 LLI 773: 1995 LLR 535 (Bom HC).


• Inordinate delay by EPF authorities to levy damages and penalty for late payment will not be sustainable.
Orissa Forest Development Corporation Ltd. v. Regional Provident Fund Commissioner, Orissa, (1995) 1 LLJ 936: 1995 LLR 978 (Ori HC).


• While levying damages for late payment of EPF's contribution, the authority should take into consideration various factors.
Popular Saw Mills v. Regional Provident Fund Commissioner, 1995 LIC 2624: (1996) 1 LLJ 201: 1996 LLR 357 (Gau HC).


• Power to recover damages for - Default of employer in payment of contribution to the funds - Discretion with Regional Provident Fund Commissioner only to reduce percentage of damages - He has no power to waive penalty altogether ­Respondent had no justification to deposit and keep on depositing the amount in the University account after the matter had been decided by Supreme Court in writ petition in February 1988 - Mere fact that University had given permission to redeposit amount with appellant did not enable respondent to take shelter for non-deposit of amount in the Fund - No justification for waiver of penalty of 25% imposed by Regional Provident Fund Commissioner.
Regional Provident Fund Commissioner v. S.D. College, Hoshiarpur, (1997) 1 see 241: 1997 SCC (L&S) 449: AIR 1997 SC 3645: 1997 LIC 910: (1997) 2 LLJ 55: 1997 LLR 186 (SC).


• Plea of delay of 14 years in recovering damages for late payment of EPF contributions will not be sustainable.
Hindustan Times Ltd. v. Union of India, (1998) 2 SCC 242: AIR 1998 SC 688: (1998) 1 SLR 495: (1998) 1 LLJ 682: (1998) 2 LLN 37: 1998 LLR 97: 1998 (78) FLR 332 (SC).



• No limitation is prescribed for recovery of EPF contributions but an employer must be given opportunity before levying of damages.
Bhubaneshwar City Distribution Division v. Union of India, 1998 LLR 312 (Od HC).


• Mere financial crunch will not be sufficient for waiving penal damages for delay in deposit of EPF contributions.
Esskay Machinery (Pvt.) Ltd. v. Regional Provident Fund Commissioner, Orissa, (1998) LIC 2258: (1998) 68 FLR 619: 1998 LLR 925 (Ori HC).


• While imposing damages the Authority under EPF and MP Act has to perform his duty promptly and cannot keep quiet for number of years at its sweet will and at pleasure wake up to issue show cause notice levying penalty against the employer, there must be determination of loss sustained by the department before levying penalty.
Snap Tap Machine Accessories India (Pvt.) Ltd. v. KP.F. Commissioner, (1997) 70 FJR 220: 1998 II LLJ 848 (Mad HC).


• Failure to pay EPF contribution due to non-allotment of Code numbers by Authorities when alternative mode of payments are available would not absolve the employer from payment of contribution in time and the employer will be liable to pay damages.
Ujwal Transport Agency, Madras v. Union of India, 1998 LLR 1150: 1998-11 LLJ 833 (Mad HC).


• Delay in issuing of show cause notice for levy of damages for delaying EPF contributions will not be a ground for waiver.
Regio1Ull Provident Fund Commissioner v. Snap Tap Machine Accessories (India) Pvt. Ltd., 2002 LLR 716 (Mad HC).


• Levy of damages for late payment of EPF contributions cannot be faulted with when justified reasons have been given in the order.
Process Syndicate v. Central Board of Trustee, (2002) 99 DLT 625: (2002) III CLR 821: (2002) 95 FLR 981: (2002) III LLJ 856: 2002 LLR 1088 (Del HC).


• When there is delay in payment of EPF contributions for no apparent fault, the damages should not be penal.
Shanti Garments Pvt. Ltd. v. Regional Provident Fund Commissioner, (2002) 101 FJR 997: (2003) 1 CLR 228: (2003) 2 LLN 850: 2003 LLR 256: 2003-1 LLJ 467 (Mad HC).


• Levy and recovery of damages by attaching of unit with certain conditions for belated deposit of EPF contribution without giving reasonable opportunity of being heard before levying and recovery of damages by the Recovery Officer will not be in exercise of powers as vested and also not with an open mind.
Puthiyara Tile Works v. Union of India, 2004 LLR 190 (Ker HC).


• Levy of damages for delayed payment of EPF contributions, by the concerned Authorities, will be quashed if the Authorities have failed to apply their mind to the actual fact that the employer has timely deposited in the nationalized bank.
Karnla Spinning Mills v. Regional Provident Fund Commissioner, Faridabad, 2005 LLR (SN) 1069 (P&H HC).


• Evan if the provident fund department failed to explain the delay while levying damages for the late payment of contribution, the employer cannot escape the liability from paying damages.
South Kanara Home Industries Kungibettu v. Employees' Provident Fund Appellate Tribunal, 2006 LLR (SN) 537 (Karn HC).


• Recovery of damages for payment of deficit amount of EPF contributions will not be sustainable when the employer paid the amount to the consultant who did not deposit full amount.
Saurashtra Solvent Extraction Company Pvt. Ltd. v. Regional Provident Fund Commissioner, 2006 LLR 644 (Guj HC).


• Damages for late deposit of provident funds contributions can't be imposed when, despite requests, code number was not allotted.
Poona Shims Pvt. Ltd. v. B.P. Ramaiah, Regional Provident Fund Commissioner, 2007 LLR 488 (Bom HC).


• Levy of damages for delayed payment of P.P. contributions at uniform rate of 25% will not be legal.
M/s. Systems & Stamping v. Employees' Provident Fund Appellate Tribunal, 2008 LLR 485 (Del HC).


• Levy of damages for late payment of provident fund contributions without holding enquiry under section 7 A is liable to be quashed.
Saroj Hospital and Heart Institute v. Employees' Provident Fund Organization, 2008 LLR 696 (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