Latest Updates on Minimum Wages and EPF etc.

HARYANA MINIMUM WAGES NOTIFICATION CHALLENGED

The Minimum Wage notification Dated 21.10.2015, issued by the Haryana Government, was challenged before the Punjab & Haryana High Court by the Gurgaon Industrial Association which was heard on 4.12.2015 and the other petition filed by Faridabad Industries Association was heard on 5.12.2015. The basic points of challenge pertained to the notification being beyond the scope as prescribed by the Minimum Wages Act. The clubbing of allowances with the basic rate of wages and then terming them as Minimum Basic rate of wages was challenged as being arbitrary and contrary to section 4 of the Act. Besides the promotions prescribed, limiting of training to one year alone, extension of the Act to domestic workers and safai karamcharis, 100% neutralization etc were some of the points challenged. It was also challenged that the Minimum Wages Act does not interfere with the contract of employment, its ambit only extends to the enhancement of wages as defined by section 2(h) of the Minimum Wages Act.

The Hon'ble Bench comprising Justice Hemant Gupta & Justice Raj Rahul Garg, after hearing the advocates, has issued the notice of motion for 23rd February, 2016 along with Notice regarding stay.

BONUS ACT AMENDMENT BILL TO BE INTRODUCED

Government will introduce a bill in the ongoing winter session to amend the Bonus Act, 1965, Prime Minister Narendra Modi told Parliament. The amendment bill seeks to enhance extent of coverage for payment of bonus from the existing wage limit of Rs 10,000 to Rs 21,000 per month as well as the calculation limit for payment of bonus from Rs 3,500 to Rs 7,000 per month. The Union Cabinet had approved the amendment in the Payment of Bonus Act, 1965 for the industrial workers in the month of November 2015, making them eligible for the reward.

STATE MOOTS RS 10K AS MIN WAGE FOR 23 SECTORS

The Labour Department has readied a draft notification which seeks to guarantee a minimum wage of Rs 10,520 per month to about 30 lakh non-skilled labourers across 23 sectors. At the launch of the department’s new web portal “Karmika Sahayoga” and website “karlabour.in”, Labour Minister P.T. Parameshwar Naik said: “The draft is already published for consultation, which will be subsequently reviewed by the advisory committee. It will then be forwarded to the State government for approval. The procedure will take at least three months.”

SEXUAL HARASSMENT CASES AT WORKPLACE MORE THAN DOUBLE IN 2014

A third of Indian corporations and a fourth of global companies, surveyed in the country, were not complying with Sexual Harassment Act, 2013 and the number of sexual harassment complaints at workplace more than doubled to 526 in 2014, according to the National Commission for Women. Overall 31 per cent of the respondents were not complying with the Act after its enactment, which mandates Internal Complaints Committee being constituted to address complaints, according to a report titled ‘Fostering Safe Workplaces’ compiled by FICCI – Ernst Young, a total of 249 complaints were registered in 2013. The report, commissioned to identify the changing dynamics of the workforce with regard to prevention of sexual harassment of women, revealed that uncertainty, caution and introspection were highly prevalent among companies.

FLIPKART MAKES PARENTHOOD EASIER

Bengaluru-based Flipkart had revamped its maternity leave policy in July. The company has now tied up with four crèches in the city under its new Daycare Support Program, which allows Flipkart employees to enroll children upto the age of four in any of these facilities and avail of a 50% subsidy on the free.

RAHUL GANDHI TO JOIN TRADE UNIONS AGAINST LABOUR REFORMS

After forcing the government on the back foot on the land Bill, Congress vice-president Rahul Gandhi will now be seen standing with trade unions and backing their stir against proposed labour reforms and easing of FDI norms in various sectors.

On 5.12.2015 he has launched a scathing attack on Prime Minister Narendra Modi, accusing him of making deliberate attempts to weaken labour-related laws which was creating dissatisfaction among the workers.

COMPANIES BENT ON ESOPS TO RETAIN STAFF, SAYS SURVEY

ESOPs means an Employee Stock Option programme (ESOP) is an employee-owner programme that provides a company’s workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no upfront cost to the employees. Private companies are preferring Employee Stock Option programmes (ESOPs) as an incentive to retain staff, says a survey.

The Information Communication and Entertainment (ICE) sector continues to dominate the ESOP space, according to leading consultancy KPMG in India. The conclusions are based on a survey of nearly 460 multinationals and listed firms in India. Out of the total respondents, 215 companies had either implemented or are planning to implement ESOP.

PROVIDENT FUND UPDATE

1,401 EMPLOYERS HELD UP FOR NOT CONTRIBUTING TO PF

As many as 1,401 prosecutions were launched against the employers till September end this fiscal, who defaulted on payment of PF contribution to the retirement fund body Employees' Provident Fund Organisation (EPFO), Parliament was informed. Under the Employees' Provident Funds & Miscellaneous Provisions Act 1952, 1,401 prosecutions were launched till September in the current fiscal, Minister of State for Labour Bandaru Dattatreya said in a written reply to Lok Sabha. According to the reply, 1,401 prosecutions were launched under the Act for default in payment of PF contributions by the employers in 2014-15 whereas the number of such cases were 414 and 317 in 2013-14 and 2013-12 respectively.

REMOVE HURDLES, REVAMP PF SYSTEM THOROUGHLY

The Employees’ Provident Fund Organisation (EPFO) and the Government of India seem to believe that the employees, in general, are spendthrift. They, therefore, want to check this attitude by hook or by crook. They think that the employees, unmindful of their action leading to an eventuality of depending on their offspring or others in the evening years of their life, prematurely withdraw and squander their own provident fund, if they are given the freedom to lay hands on it. The EPFO has the proof for this ‘irresponsible’ attitude of employees. The Central Provident Fund Commissioner K.K. Jalan says that as many as 65 lakh claims out of a total 1.3 crore annual claims at present are for premature withdrawals.

NOW FILE PF WITHDRAWAL CLAIMS WITHOUT EMPLOYERS' ATTESTATION

Moving a step closer to online settlement of PF withdrawal claims, retirement fund body EPFO allowed its subscribers to file their applications directly to the body without employers' attestation.

At present, subscribers submit their claims regarding provident fund withdrawals manually through their present or former employers. The attestation of the forms was mandatory for the purpose.

This facility will be available to all those subscribers whose Universal (or portable PF) Account Number (UAN) is activated and seeded with the KYC details like bank account and Aadhaar number.

EPF APPELLATE TRIBUNAL ORDERS

● MINIMUM WAGES CAN BE SPLIT INTO ALLOWANCES FOR PROVIDENT FUND CONTRIBUTIONS

"Bifurcation of wages below minimum wages or basic wages and DA etc. are the issues, completely out of the purview of PF authorities".

Presiding Officer, EPF Appellate Tribunal

EDITOR'S NOTE :

Strange of the ways of Employees' Provident Fund Organisation (EPFO). It shows swiftness in issuing those circulars, which have possibility to be misunderstood but it becomes slack and lethargic in conveying those decisions succinct and contain no ambiguity. It will, thus, be seen that as and when there is a favourable judgment for the EPFO, the circular or clarification is issued without any loss of time but if the position is otherwise, no such clarifications are circulated.

Despite space constraint and also obstinacy of the Provident Fund Authorities determining of money due from employers etc. they don't abide by the orders of the EPF Appellate Tribunal but keeping in view the significance of the landmark order in ATA No.743(8) 2010 decided on 30.11.2015, we have decided to publish the whole judgment of the EPF Appellate Tribunal in the January, 2016 issue of the Labour Law Reporter.

More Orders of the EPF Appellate Tribunal -

● An order passed merely on the basis of presumptions without any material on record is liable to be quashed
● Less than 20 employees would not attract applicability of EPF & MP Act
● Levy of damages and interest – not only for arrears but for belated payments also LABOUR LAW
● Damages are leviable if amount of EPF contributions is deposited belatedly
● Determination of money by RPFC on the basis of balance sheet – liable to be quashed
● Determination of EPF dues without any material evidence/basis is liable to be quashed

Source:  LLR