ADP Statutory Compliance Newsletter from ADP Indi Strictly Statutes June 2013 Statutory Compliance Newsletter from ADP India
Compliance calendar for June 2013 Activity Due Date Scope Due Under Mode 10/06/2013 Andhra Pradesh & State wise Madhya Pradesh 15/06/2013 Gujarat Gujarat PT Professional Tax Remittance 20/06/2013 Karnataka Karnataka PT 21/06/2013 West Bengal West Bengal PT 30/06/2013 Maharashtra, Assam & Orissa State wise Labour Welfare Fund Remittances 20/06/2013 Kerala Kerala State Labour Welfare Fund PF Remittance of Contribution 15/06/2013 Central EPF & MP Act 1952 PF International worker with wages & Nationality 15/06/2013 Central EPF & MP Act 1952 Statement in IW 1 ESI Remittance of Contribution 21/06/2013 Main Code & Sub Codes ESIC Act 1948 2
A JUDGEMENT TO FEEL ABOUT Award Principal Employer is liable for ESI contribution for both the employees on roll and through contractors. In a case of National Aluminium Company and Ors vs. The Employee s State Insurance Corporation and Ors, Honourable Justice of Orissa High Court Mr BN Mahapatra has delivered that as per Employee s State Insurance Act 1948, Sec 39 & 40, the liability to pay entire contribution under the act in respect of every employee, whether employed direct or through an immediate employer, for both the employer s and employee s contributions, is on the principal employer. Any settlement contrary to provisions of law between employer and employee cannot exonerate the employer from statutory obligations. The duty is enjoined on the principal employer to discharge statutory obligations by depositing the contributions, once the establishment is covered under the act. Updates on Market Trends & Labour Legislation Clarity on Provident Fund and Miscellaneous Act 1952 applicability to International Workers (Expats) Circular from Additional PF Commissioner (IWU) dated 23 May 2013 emphasises that as per special provisions of the EPF Scheme 1952, contributions in respect of International Workers (i.e. employer s and employee s) were required to be remitted by an employer on full pay (i.e. without ceiling of Rs 6500/- per month) with effect from 1 st Nov 2008 or from the date of joining whichever was later. The restriction on the diversion of 8.33% of the employer s share of EPF contribution towards the employees pension fund was also done away with vide GSR 149 dated 03/09/2010. Thus it is very clear that in respect of International Workers, the contribution had to be deducted and remitted under EPF as well as EPS Scheme on full pay without any ceiling (where Pay consists of Basic Wages, Dearness Allowances, Retaining Allowances if any and the cash on food concession if any). Violation of the above by the employers will entail serious consequences for the employers by way of liability towards both damages under section 14B and penal interest under section 7Q including prosecution under section 14 of the EPF & MP Act 1952. However, more than anything else, an International Worker shall face financial loss and great difficulties when totalling of benefits is attempted under various Social Security Arrangements. Wilful defaulters may also be considered for booking under Law to have deterrent impact and ensuring strict compliance. 3
Do you know that Indian Railways will recruit 1,52,000 new employees to run its work efficiently Over two lakh life insurance agents have lost jobs in the life insurance sector in the first three quarters of last financial year The Employees Provident Fund organization has corpus of Rs 4.5 lakhs crore with Rs. 50,000 crore worth fresh fund getting added every year Despite civil aviation ministry phasing out foreign pilots, India still has 340 foreign pilots Tamil Nadu had the highest number (17,309) of Provident Fund defaulting companies with dues worth Rs. 313.47 crore until Sep 2012 Two bills passed by Parliament provide for different punishments for sexually harassing women 4
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