STRICTLY STATUTES. A newsletter from MYND SOLUTIONS Volume 1, Edition 1, Aug - Oct

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1 STRICTLY STATUTES A newsletter from MYND SOLUTIONS Volume 1, Edition 1, Aug - Oct

2 Editor's Note Hello Readers, We are happy to present the 1st edition of our Mynd Newsletter Strictly Statutes which looks at a variety of areas, including recent court decisions, updates on labour laws and of course the upcoming amendment and proposals. This newsletter is indeed a great medium to spread information and keep everyone updated on the latest Judgements, news, amendments on various statutory labour laws. In our newsletter, we have addressed recent judgments of the honorable Supreme Court and the honorable High courts covering issues like reinstatement, termination of services, liability of EPF dues etc. In News to note we have covered proposed amendment in the eligibility criteria under ESI Act, proposed bills under Employee Compensation Act, Maternity Benefit Act,Model Shops and Establishments Bill 2016, Procedure/Plan for Merger of Duplicate (UAN) by EPFO. The latest amendments includes launch of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), amendment in investment patterns, new districts covered under ESI Scheme, revised minimum wages. We hope you find the contents of this newsletter relevant and useful. We welcome your thoughts and feedback. Please write to mynd-labourlawupdates@myndsol.com

3 Table of Contents Latest Amendments Launch of Pradhan Mantri Yojana by Government of India 1 ESI Corporation to reduce contributions for entirely new implemented areas 2 Amendment in investment pattern applied to exempted establishments 3 Introduction of declaration form (new form 11) by EPFO 3 New districts covered under ESI scheme 3 Applicability of PF regulations for Stipend paid 4 Digitization of registers and other documents 4 EPFO to settle death claims within 7 days 5 State minimum wages- October News to Note Proposed Amendment in the eligibility criteria under ESI Act 12 Proposal by Ministry of Labourand employment to amend standing order rules 13 ESI maternity leave increase to 24 weeks from 12 weeks-draft rules notification 13 EPFO prescribes procedures/plan for merger of duplicate UAN 14 Maternity Benefit (Amendment) Bill The Model Shops and Establishment Bill Employee s Compensation Amendment Bill

4 Important Judgement SC: Construction Workers Not Part of the Factories Act 18 SC: Courts have no discretion to reduce fine amount prescribed in ESI Act 19 Delhi HC: Abandonment of employment by workman be presumed only when an enquiry is held against him 20 Bombay HC: Liability of EPF dues lies upon the ultimate controller of the establishments 21 P&H HC: ESI Contribution not to be deposited when salary crosses Rs. 15,000 pm 22 Delhi HC: Report of Internal committee will be deemed as enquiry report for disciplinary action under Sexual Harassment Act 22 Madras HC: Liability for depositing PF contributions 23

5 LATEST AMENDMENTS Launch of Pradhan Mantri Yojana by Government of India In recent times, Modi Government has taken quite a lot of initiatives to boost up the employment in India. As the nation terribly suffers from high unemployment rate, the Government has been keen to encourage employment generation in various ways. After launching the Stand-up India Scheme successfully now the Central Government by way of a notification no. KN/MN/SHG/Coord/115/ dated 6th October 2016 has launched another employment generation scheme for the unemployed people namely Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). Under this Scheme people who are getting wages upto Rs 15,000 per month will be getting employment facilities to enhance their employment skills Key Features This Scheme will be applicable to those with salary upto Rs. 15,000/- permonth. Government will pay 8.33% of the basic wage as pension in EPS on behalf of the employer for new employment up to three years All establishments registered with EPFO can apply for availing this benefit The establishment should have LIN allotted to them under Shram Suvidha Employee should have a valid Aadhar linked UAN with wages less than Rs.15000/- Textile sector establishments with NIC codes 1410 & 1430 are eligible to get 3.67% of EPF Contribution also Registration on PMRPY Portal is mandatory to avail benefits 1

6 ESI corporation to reduce contributions for entirely new implemented areas The Ministry of Labour and Employment by way of a notification no. GSR 959(E) dated 6th October 2016 has incorporated Rule 51B in ESI Rules 1950, which provides that in the area where the scheme is implemented for the first time, the Employer s contribution and the employee s Employer s contribution and the employee s contribution would beas follows for the initial period of 24 months from the day it s been implemented. 1. Employer s contribution: A sum (rounded to the next higher rupee) equal to 3% of the wages payable to an employee. 2. Employee s contribution: A sum (rounded to the next higher rupee) equal to 1 % of the wages payable to an employee. After completion of the aforesaid 24 months, the rate of contribution would be the same as existing i.e. 4.75% in respect of employer and 1.75% in respect of employee. To read the notification: Click here.pdf 2

7 Amendment in investment pattern applied to exempted establishments There is an amendment in the existing pattern of investment in Category (i) relating to the Category/Sub Category Government Securities and Related Investments where by the maximum percentage of investment in Government Securities and Related Investments has been raised from 50% to 65% with effect from 17th March, This may please be taken into account while making further investments. Introduction of declaration form (new form 11) by EPFO EPFO has introduced revised/new Declaration Form 11 under PF to replace existing Form No. 11, w.e.f. September 23, Also, this new declaration Form 11 (PF) will replace Form 13 for transfer of funds by members availing UAN facility. To read the notification: Click here.pdf New districts covered under ESI scheme ESI Corporation has extended the coverage of ESI Scheme to more districts of the following states.the details of the same is being given here under- Andhra Pradesh: 9 Districts of AP are covered under ESIC from September 1, Bihar: 16 Districts of Bihar are covered under ESIC from September 1, Karnataka: 4 Districts of Karnataka are covered under ESIC from September 1,

8 Madhya Pradesh: 22 Districts of Madhya Pradesh are covered under ESIC from September 1, Maharashtra: 20 Districts of Maharashtra are covered under ESIC from August 1, Rajasthan: 28 Districts of Rajasthan are covered under ESIC from August 1, 2016 Jammu & Kashmir: 8 Districts of J&K are covered under ESIC from August 1, Haryana: 1 District of Haryana is covered under ESIC from July 1, Telangana : 4 Districts of Telangana are covered under ESIC from July 1, 2016 Applicability of PF regulations for Stipend paid The Employee Provident Organization (EPFO) has clarified that stipend paid to student trainees of educational or technical institutes recognized by Government or any authority constituted by them shall not be subjected to the provisions of employee s provident fund and miscellaneous provisions Act. The EPFO has further clarified that PF regulations are not applicable due to the absence of employer employee relationship and the students are exposed to technical development and hands on training only during the training period. However, if the students are getting placement in companies as employees of companies, the PF regulations would be applicable and the stipend paid will be subjected to PF. Digitization of registers and other documents The EPFO has instructed their officers to accept and entertain the digitize records of employees concerning inspections, returns etc. that may be produced by the employer. Further Ministry of Labour & Employment has requested to issue following directions:- if any employer/ establishment makes available registers/ records in electronic form and accessible to the inspector/ uthority so as to be usable 4

9 for a subsequent reference, then that employer/ establishment should not be required to produce print/ hard copy of these documents. Impact It appears the circular is a step towards integrating the maintenance of records under various related statutes for employees. It will avoid duplication of work and ensure accuracy. Data will be integrated with other social security schemes and output reports will be available in prescribed registers as per different Acts. To read the notification: Click here.pdf EPFO TO SETTLE DEATH CLAIMS WITHIN 7 DAYS EPFO has issued guidelines to field offices to take "proactive action to settle death claims within seven days and retirement cases on or before the day of retirement. The Employees Provident Fund Organisation (EPFO) has decided to settle PF money claimed after death of an employee within seven days from 20 days at present, in the wake of concerns raised by Prime Minister Narendra Modi about delays in settlement of EPF /EDLI/EPS claims, especially in death cases. To read the notification: Click here.pdf 5

10 State minimum wages- October 2016 The table below reflects current state minimum wages w.e.f October1, 2016 DELHI MINIMUM WAGES Category of workers Previous Wages Revised Wages w.e.f Dearness Allowances (pm) Per-Month Per-Day Un-skilled Semi-skilled Skilled Non Matriculates Matriculates but not graduates Graduate and above PUNJAB MINIMUM WAGES Category of workers Previous Wages Revised Wages w.e.f Per-Month Per-Month Per-Day Un-skilled Semi-skilled Skilled Highly Skilled

11 MP MINIMUM WAGES Category of workers Previous Wages Revised Wages w.e.f Dearness Allowances (pm) Per-Month Per-Day Un-skilled Semi-skilled Skilled High Skilled GUJRAT MINIMUM WAGES Category of workers Revised Wages w.e.f ZONE-1 ZONE-11 Category of workers Per-Month Per-Day Per-Month Per-Day Un-skilled Semi-skilled Skilled UP MINIMUM WAGES Category of workers Previous Wages Revised Wages w.e.f Per-Month Per-Day Un-skilled Semi-skilled Skilled

12 CHATTISGARH MINIMUM WAGES Category of workers Previous Wages Revised Wages w.e.f Per-Month Per-Month Per-Day Un-skilled Semi-skilled Skilled UTTRAKHAND MINIMUM WAGES Category of workers Previous Wages Revised Wages w.e.f Per-Month Per-Month Per-Day Un-skilled Semi-skilled Skilled HARYANA MINIMUM WAGES Category of workers Revised Wages w.e.f Dearness Allowances Revised wages per month (Rs.) Revised wages per day (Rs.) Unskilled , Semi-skilled A , Semi- skilled B , Skilled A , Skilled B , Highly skilled ,

13 AP MINIMUM WAGES Category of workers Revised Wages w.e.f Basic VDA Per-Month Per-Day Un-skilled Peon/Attender/ Watchman/ Water Boy/ Helper/ Messenger Peon/Attender/ Watchman/ Water Boy/ Helper/ Messenger Semi-Skilled Clerk/ Typist/- Clerk-cum-Typist/ Godown Incharge/Lineman/ Assistant Salesman/ Asst.Accountant/ Xerox Machine Operator Skilled Salesman, Stenographer,Receptionist,Auction Bider, Type Writer Instructor, Electrician, Radio Mechanic, Optical Mechanic, Surfacer, Grinder,Photographer, Photo Artist, Typewriter, Mechanic, T.V.Mechanic, Fitter, Turner, Welder and Plumber, Mason etc Highly Skilled Accountant/ Asst.Manager/ Sales Executive/ Supervisor/ Purchaser/ Store Keeper/ Agent/ Sales Promotion Employees Manager/ Field Officer/ Development Officer/ Office Incharge/ Computer Programmer

14 TELENGANA MINIMUM WAGES Name of the Category Basic Wage VDA Total Wage COMMERCIAL ESTAB- LISHMENTS Zone1 Zone11 Zone1 Zone11 Zone1 Zone11 Manager/ Field Officer/ Development Officer/ Security Officer/ Office Incharge/ Computer Programmer Accountant/ Asst.Manager/ Sales Executive/ Supervisor/ Purchaser/ Store Keeper/ Agent/ Sales Promotion Employees Salesman/ Stenographer/ Receptionist/ Auction Bider/ Tradesman/ Type Writer Instructor Clerk/ Typist/Clerk-cum-Typist/ GodownIncharge/Lineman / Assistant Salesman/ Asst.Accountant/ Xerox Machine Operator Weighman/ Kolgari Peon/Attender/ Watchman/ Water Boy/ Helper/ Messenger/ Security Guard Computer Operator

15 BIHAR MINIMUM WAGES Category of workers Revised Wages w.e.f Revised wages per month (Rs.) Revised wages per day (Rs.) Un-skilled Semi-skilled Skilled Highly Skilled Supervisory Clerical

16 NEWS TO NOTE Proposed Amendment in the eligibility criteria under ESI Act The Ministry of Labour Employment has We are of the view that the Business issued a notification no. GSR 957 (E) dated 6th October 2016, whereby it has been chambers and employers Association may approach the Government with suggestions proposed to increase the eligibility criteria of opposingto the proposed amendment an employee from Rs /- to Rs.21000/- primarily for the following reasons: and has sought objections/ suggestions from the all concerned to the same within 30 days. 1. The employees who earn Rs.15,000/- and more may not prefer to avail the ESI medical facilities as the medical facilities otherwise available are found to be moreconvenient. 2. The ESIC does not have an efficient network of Clinics available particularly in remote areas and defeats the very purpose. 3. Such coverage would discourage the employers to extend the internal medical benefits and policies to employees which are very useful. To read the notification: Click here.pdf 12

17 Proposal by the Ministry of Labour and employment to amend the standing order rules The proposed amendment is related to Further the contract of temporary incorporation of fixed term employment in respect of Apparel Manufacturing Sector. It further proposes that fixed term employees shall be entitled to the benefits as that of permanent employees. employees, badli, Probationer in Apparel manufacturing Sector could be terminated on renewal of contract without advance notice or payment of salary in lieu thereof. It further provides that such employees cannot be terminated for misconduct without following principles of natural justice. To read the notification: Click here.pdf ESI maternity leave increase to 24 weeks from 12 weeks-draft rules notification ESI Maternity Leave increase to 24 weeks from 12 weeks- Draft Rules Notification The proposed amendment is related to incorporation of benefits to a female employee as maternity benefit which is in line with the amendments as already undertaken in Maternity Benefits Act. According to the new Gazette proposal, after its final approval women with following category will also be eligible for ESI Maternity Benefits A commissioning mother who as biological mother wishes to have a child and prefers to get embryo implanted in any other woman; A woman who legally adopts a child upto three months of age; To read the notification: Click here.pdf 13

18 EPFO prescribes procedures/plan for merger of duplicate UAN The EPFO has prescribed procedure and plan for deactivation or merger of duplicate UANs erroneously allotted to same EPF members in certain special circumstances. It has stated that though UAN has been allotted legitimately i.e. under the prescribed criteria, there has been cases where duplicate UANs have been issued. This could be due to the fact that at the time of initial allotment, the employer has not furnished the date of exit in the ECR (electronic challan cum return) even if the member has left the employment and joined some other establishment. Thus, two UANs have resulted to such members for both the employments. Secondly, at the time of joining the present employment, a new UAN has been allotted to the members due to wrong declaration by member/employer under the UAN programme. To read the notification: Click here.pdf 14

19 Maternity Benefit (Amendment) Bill 2016 The Bill amends provisions related to the duration and applicability of maternity leave, and other facilities. Key features of Maternity Benefit (Amendment) Bill 2016 Duration of maternity leave: The Act states that every woman will be entitled to maternity benefit of 12 weeks. The Bill increases this to 26 weeks. Under the Act, this maternity benefit should not be availed before six weeks from the date of expected delivery. The Bill changes this to eight weeks. In case of a woman who has two or more children, the maternity benefit will continue to be 12 weeks, which cannot be availed before six weeks from the date of the expected delivery. Maternity leave for adoptive and commissioning mothers: The Bill introduces a provision to grant 12 weeks of maternity leave to: (i) a woman who legally adopts a child below three months of age; and (ii) a commissioning mother. A commissioning mother is defined as a biological mother who uses her egg to create an embryo implanted in another woman. The 12-week period of maternity benefit will be calculated from the date the child is handed over to the adoptive or commissioning mother. Option to work from home: The Bill introduces a provision that states that an employer may permit a woman to work from home. This would apply if the nature of work assigned to the woman permits her to work from home. This option can be availed of, after the period of maternity leave, for a duration that is mutually decided by the employer and the woman. Crèche facilities: The Bill introduces a provision which requires every establishment with 50 or more employees to provide crèche facilities within a prescribed distance. The woman will be allowed four visits to the crèche in a day. This will include her interval for rest. Important Note: Informing women employees of the right to maternity leave: The Bill introduces a provision which requires every establishment to intimate a woman at the time of her appointment of the maternity benefits available to her. Such communication must be in writing and electronically To read the notification: Click here.pdf 15

20 The Model Shops and Establishment Bill 2016 Recently the Central Government has approved the Model Shops and Establishment (Regulation of Employment & Conditions of Service) Bill The bill is one of the intrepid steps toward employment generation and providing favourable environment for doing business..it will also give a boost to employment opportunities to women as they will be permitted to work during night shifts with adequate safety and security provisions. Key features of the bill It shall apply to the shops and establishments employing ten or more workers. It provides for women to be employed during night shift with adequate security. It calls for no discrimination against women in the matter of recruitment, training, transfer or Analysis The model law aims at improving the working conditions of workers, creating more job opportunities, especially for women and providing favourable environment for doing business. The model Shops and Establishments Bill is one of the important legislation, which will boost employment opportunities for Indian youths. The provision of night shift will enhance the working hours of shops and establishments and due to enhanced working hours, more job opportunities would be created. Allowing employment of women in night shifts will enhance the gender diversity at work places and boost to employment opportunities to women. The establishments will have to ensure safety and better working conditions for female employees. Similarly model bill tries to bring uniformity in legislative provisions, making it easier for all the States to adopt it and it would promote the fair competition among the States in improving the Governance and ease of doing business. Conclusion The proposed model bill if implemented effectively will definitely generate more employment and creates favourable environment for doing business. It is welcome that the government has adopted a model law to remove the restrictions on shops and establishments in the country functioning as per the requirements of a globalised economy. It is a suggestive piece of legislation and states have liberty for adjustments as per their requirements. It is expected that the Model law if adopted by State will lead to growth in jobs especially in the retail, IT, hospitality and services sector. 16

21 Employee s Compensation Amendment Bill 2016 The Employee s Compensation (Amendment) Bill, 2016 was introduced in Lok Sabha on August 5, 2016 by the Minister for Labour and Employment to amend few provisions of the Employee s Compensation Act and the proposals are as mentioned below:- Key Highlights of the proposal The Bill introduces a provision which requires an employer to inform the employee of his right to compensation under the Act. Such information must be given in writing (in English, Hindi or the relevant official language) at the time of employing him. The Bill penalises an employer if he fails to inform his employee of his right to compensation. Such penalty may be between fifty thousand to One lakh rupees. The Act stipulates that appeals can be made against orders related to compensation, distribution of compensation, award of penalty or interest, etc. only if the amount in dispute is at least three hundred rupees. The Bill raises this amount to ten thousand rupees. It permits the Central Government to further raise this amount. Withholding payments pending appeal: Under the Act, if an employer has appealed against a Commissioner s order, any payments towards the employee can be temporarily withheld. The Commissioner may do so only by an order of the High Court, until the matter is disposed of by the Court. The Bill deletes this provision. The Bill introduces a provision which requires an employer to inform the employee of his right to compensation under the Act. Such information must be given in writing (in English, Hindi or the relevant official language) at the time of employing him. The Bill penalises an employer if he fails to inform his employee of his right to compensation. Such penalty may be between fifty thousand to One lakh rupees. The Act stipulates that appeals can be made against orders related to compensation, distribution of compensation, award of penalty or interest, etc. only if the amount in dispute is at least three hundred rupees. The Bill raises this amount to ten thousand rupees. It permits the Central Government to further raise this amount. With holding payments pending appeal: Under the Act, if an employer has appealed against a Commissioner s order, any payments towards the employee can be temporarily withheld. The Commissioner may do so only by an order of the High Court, until the matter is disposed of by the Court. The Bill deletes this provision. To read the notification: Click here.pdf 17

22 IMPORTANT JUDGEMENTS SC: Construction Workers Not Part of the Factories Act In a case of Lanco Anpara Power Ltd. Vs. State of Uttar Pradesh & others the Hon ble Supreme Court of India through Hon'ble Justice Mr. A.k.Sikri pronounced that The Construction workers are not covered by the Factories Act, 1948 (Factories Act) and, therefore, welfare measures specifically provided for such workers under the building and other construction workers (Regulation of Employment and conditions of service) Act, 1996 ( BOCW Act ) and buildings and other Construction Workers Welfare Cess Act, 1996 ( Welfare Cess Act ) cannot be denied. The subject matter of the present case lies in the fact that Lanco Anpara Power Ltd. is not covered by the definition of factory as provided under Section 2 (m) of the Factories Act in view of the absence of any operation or manufacturing process. That mere obtaining a license under section 6 of the Factories Act would not suffice and rescue them from their liability to pay cess under the Welfare Cess Act. 18

23 SC: Courts have no discretion to reduce fine amount prescribed in ESI Act In case of Employees State Insurance Corporation vs. A.K. Abdul Samad & Anr, thehon ble SC through Hon ble justice Mr. Ashok KM pronounced that The Courts have no discretion to reduce the fine prescribed in Sec 85 (a) (i) (b) of the Employees State Insurance Corporation Act, once the offence has been established. The discretion as per proviso to Section 85 (a) (i) (b) is confined only in respect of term of imprisonment. The Law 85(a)(i)(b) of the Employees State Insurance Corporation Act prescribes punishment for a particular offence under ESI Actas imprisonment which shall not be less than six months and the convict shall also be liable to fine of five thousand rupees. The provison however empowers the court that it may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term; Background Facts The appellants were found guilty and were punished by imposing a fine of Rs.1000/- and with imprisonment till rising of the Court. Contending that the Court has no power to reduce the fine amount prescribed in the ESI Act, the ESI Corporation approached Karnataka High Court by filing revision. The object of creating offence and penalty under the Employees State Insurance Act, 1948 is clearly to create deterrence against violation of provisions of the Act which are beneficial for the employees. The court also said that non-payment of contributions is an economic offence and therefore the Legislature has not only fixed a minimum term of imprisonment but also a fixed amount of fine of five thousand rupees under Section 85(a) (i) (b) of the Act. There is no discretion of awarding less than the specified fee, under the main provision. It is only the proviso which is in the nature of an exception where under the court is vested with discretion limited to imposition of imprisonment for a lesser term. Conspicuously, no words are found in the proviso for imposing a lesser fine than that of five thousand rupees. In such a situation the intention of the Legislature is clear and brooks no interpretation. The law is well settled that when the wordings of the Stature are clear, no interpretation is required unless there is a requirement of saving the provisions from vice of unconstitutionality or absurdity. Neither of the twin situations is attracted herein, the bench said. 19

24 Delhi HC: Abandonment of employement by workman be presumed only when an enquiry is held against him In a case of M/s Floortex Collection vs. Vikram Thapa authority and others, the Hon ble High Court through honorable justice Mr.V.Kameswar Rao pronounced that The Termination of service of workman, without issuing show cause notice, holding enquiry, proving any guilt against him, without following the principles of natural of natural justice and provisions of section 25F of the Industrial Disputes Act, 1947 etc., is illegal attracting reinstatement with back-wages. If the management has neither called upon the workmen to resume his duty nor ready to get him on duty by making statement before the court in this respect, only a plea that the workman has abandoned the job own his accords, is not sustainable. If there is loss of confidence by the management upon the workman, awarding lump sum compensation, in lieu of reinstatement, is appropriate. 20

25 Bombay HC: Liability of EPF dues lies upon the ultimate controller of the establishments In a case of The Bombay Diocesan Trust Association Pvt. Ltd vs. Employees Provident Fund Organization and others, the Hon ble Bombay High Court through the verdict by the Hon ble Justice Mr.D.H. Waghela pronounced that A person or a body person is liable to pay EPF dues only when he/they are having ultimate control over them functions of the employer, in respect of its employees coverable under the employees provident fund and Miscellaneous Provisions Act, An order passed, without giving proper opportunitiesof hearing the party concerned, is illegal and liable to be set aside. EPF Authorities is entitled to recover the EPF dues only from the employer who is having ultimate control over its employees that too in accordancewith law. Any order passed, without giving proper opportunities of hearing the party concerned, is illegal. 21

26 P&H HC: ESI Contribution not to be deposited when salary crosses Rs. 15,000 pm In a case of Regional Director ESIC vs. Coca Cola India., the Hon ble P&H High Court through the verdict by Hon ble Justices Mr. Augustine George Masih, pronounced that An employer is not liable to deposit any contribution in respect of those employees whose wages have increased beyond the prescribed limits. If an employer proves by way of cogent evidence that the employees were drawing more than the prescribed limits compelling the employer by the ESI Authority to deposit contribution is illegal. Any plea without notice of demand cannot be accepted at any later stage. Delhi HC: Report of Internal committee will be deemed as enquiry report for disciplinary action under Sexual Harassment Act: In a case of Sarita Verma Vs. New Delhi Municipal Corporation & Ors, the Hon ble Delhi High Court through the verdict by Hon ble Justice Mr. Manmohan, J Section 13 (3 ) of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and redressal) Act, 2013 provides :. (i) (ii) (iii) That report of committee shall have to be deemed as an enquiry report in a disciplinary action; It has to be treated as finding in disciplinary enquiry; Finding and report of the internal complaints committee shall not be treated as a mere preliminary investigation but a finding in enquiry. Bar of alternative effective remedy is a self-imposed restraint and not a constitutional bar. 22

27 Madras HC: Liability for depositing PF contributions In a case of J. Brakes India Ltd vs Employees Provident Fund Organisation, the Hon ble Madras High Court through Hon'ble justice Mr.Duraiswamy pronounced that EPF Authority not entitled to Contractors, registered with However, the liability of recover either PF contribution or damages from the principal employer in respect of employees engaged through contractors, registered with the PF department, having independent Code no. the PF department, having independent Code no, are to be treated as independent employer. unregistered contractors, for payment of EPF contributions or damages, in case of default on his part, would fall on the principal employer, if not paid by the unregistered contractor, in view of clause 30 of EPF Scheme,

28 Mynd Overview Mynd Solutions is a leading global service provider in Business Process and Technology Management, offering broad spectrum of services in Finance and Accounting (FAO), Human Resource Outsourcing (HRO), Information Technology (IT) and Consulting. We value order and discipline in processing as it drives front-end results such as customer satisfaction and retention, revenue generation and profitability. Mynd Solutions combines deep process knowledge and insights with a focused IT approach, targeted analytics and pragmatic engineering to deliver an integrated process solution. Mynd commenced operations in 2002 in India, with International presence today in Asia, Africa, Middle East, US and Europe. The company s global reach is further supported by a robust partner network spread across 60+ Countries for addressing specific customer requirements. MYND India Mynd Solutions Pvt. Ltd Gurgaon, Haryana Phone: Website :