PROSECUTION - LAUNCHING OF

• Prosecution of all the Directors of a Company for not depositing of the Employees' Provident Fund contribution after deducting from the employees will not be justified and only those persons would be liable who have actually deducted the employees' contribution and not the other person.
Kailashkumar Radhakrishan Kilnoria v. State of Gujarat, (1994) III LLJ (Supp) 428: 1991 LLR 733: 1991(63) FLR 794. (Guj HC).



• Initiation of prosecution proceedings by the Provident Fund authorities without deciding the pending representation will not be valid.
Motoshri Mudranalaya v. State of Maharashtra, (1994) III LJ (Supp) 428: 1991 LLR 900: 1991 (63) FLR 736: 1991-II LLN 900 (Bom HC).


• Employees' Provident Fund Scheme, 1952 - Paragraphs 36A, 43, 67(b) ­Prosecution against the Directors of the Company - For non-submission of statements in Form No. 12 and contribution cards in Form No. 3A - Alleging that all the accused are the persons in charge of the said establishment. Respondent for the conduct of its business. Except against the petitioner, the complaint is untenable against other 13 accused.


Transport Corporation of India Ltd. v. RM. Gandhi, 1991 LIC 2017: 1992 LLR 40: 1992(64) FLR 697 (Bom HC).



• Prosecution of Directors for default in payment of fund amount in time - Filing of declaration by the Company on Form SA - Stating the names of Managing Director and the two Directors including the appellant - As not only the owners but as in charge are responsible for the conduct of the business of the establishment - Prosecution of the appellant - Director being in charge and responsible for the Management of the factory - Whether legal? Yes.
Srikanta Datta Narasimharaja Wodiyar v. Enforcement Officer, Mysore, (1993) 3 see 217: AIR 1993 SC 1656: 1993 LIC 1359: (1993) 2 LLN 69: 1993 LLR 497 (SC).



• Executive or the Financial Director will not be liable for prosecution under EPF & MP Act when General Manager is responsible for compliance of the same.
B.I.E. Ltd. Cawnpore Woollen Mills Branch v. The Provident Fund Inspector, Kanpur, 1998 LLR 266 (All HC).



• Prosecution of a Managing Director, not incharge of company's business, for failure to pay P.F.'s contributions will not be justified.
Rajgopalachari S. v. Bellary Spinning and Weaving Company Ltd., 1998 LLR 344 (Karn HC).



• A Director of the company being incharge of administration will be liable for prosecution for non compliance of Provident Funds Act.
Bhagchand Jain v. P.F. Inspector, (1994) 4 LLN 939: 1998 CWN 595: 2000 II LLJ 599: 1999 LLR 912: 1999 (82) FLR 608 (Cal HC).



• Acquittal of employer for violation of EPF & MP Act will be justified when the Act did not apply to the establishment.
State through Inspector of Provident Fund, Office of the Regional Provident Fund Commissioner, Orissa, Bhubaneshwar v. M/s. Rameshwarlal Mallram, 2000 LLR 346 (Ori HC).



• Arrest of a Director declaring as employer in Form 5 for non-payment of provident fund dues will not be set-aside.
Binod Kumar Biyala v. The Regional Provident Fund Organization, West Bengal, (2001) 88 FLR 216: (2001) I LLJ 305: 2000 LLR 1172 (Cal HC).



• Recovery of EPF contributions will not be stalled on company's plea that it is before BIFR.
Universal Paper Mills Ltd. v. Regional Provident Fund Commissioner, (2001) 91 FLR 591: (2001) 2 LLJ 1139: 2002 LLR 41 (Cal HC).



• Prosecution of a Director for non-deposit of EPF contributions is to be re­examined to determine responsibility.
M. Shivram v. The Enforcement Officer, Employees' Provident Funds Shimoga, 2002 LLR 132 (Karn HC).



• Prosecution of Managing Director for non-deposit of EPF contribution cannot be quashed because the offences were committed before his joining.
Aniruddha Kumar Dhote v. State of Maharashtra, (2002) 94 FLR 94: 2002 LLR 914 (Bom HC).



• High Court cannot direct closure or prosecution for non-payment of provident contribution due to pendency of proceedings under SICA.
Aluminium Industries Ltd. v. Provident Fund Inspector, (2002) 101 FJR 128: (2002) 3 LLN 826: (2002) III LLJ 422: 2002 LLR 943 (AP HC).



• A private complaint filed by General Secretary of the Union for prosecution of the executives of the Company will not be set aside when the EPF contributions amounting to Rs. 1,72,80, 485 have been deducted but not deposited.
Shrikant Bangur v. Shree Synthetics Shramik Union, 2004 LLR 403 (MP HC).



• Prosecution of a Director of the Company for default in payment of EPF contributions will be quashed when the Director was not in over all charge of the Company and also he had ceased to be Director as under revealed from the Form 32 the Companies Act before the alleged non-payment of contributions.
R. Dhandayuthnpani v. C.R. Kaleel, 2004 LLR 142 (Mad HC).



• A complaint for prosecution in defaulting the payment of provident fund dues as filed after three years from the default will barred by limitation when the punishment for violation of the provisions is also prescribed for three years.
R. Dhandayuthapani v. C.R. Kaleel, 2004 LLR 142 (Mad HC).



• Prosecution of directors of a Company for non deposit of EPF contributions though deducted from the wages of the employees will be quashed since they do not come within the purview of 'employer' as defined by the Employees' Provident Funds & Miscellaneous Provisions Act.
Sharad Mittersain Jain v. State of Maharashtra, (2004) I Mah LJ 776: 2004 LLR 367 (Bom HC).



• Penal action and withdrawal of the exemption by the PF Authorities will be set aside when there was reasonable explanation for not producing the balance sheet.
Mitra S.K. Pvt. Ltd. v. The Regional Provident Fund Commissioner, (1) West Bengal, (2) Sikkim, (2005) 30 AIC 764: 2005 LLR 428 (Cal HC).



• Issuance of arrest warrant of the employer for failure to furnish the required information for determination of provident fund contribution will he gross misuse of power.
Vignan Education Development Society, Ongole v. Assistant Provident Fund Commissioner and Authority, Guntur, 2005 LLR 451 (AP HC).



• Prosecution under IPC for non-deposit of provident contributions despite deductions will not be quashed.
Ram Prasad Sao v. State of Bihar, 2007 LLR 1172 (Jhar HC).



• Acquittal of employer will not to be interfered when the Provident Fund Inspector did not lead supporting evidence.

Provident Fund Inspector, Kota v. Bhagi Bai, 2008 LLR 1048 (Raj HC).




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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

    •