Compliance Calendar for June, 2018

Minimum wages Act – New Notification from the Delhi government

The Minimum Wages (Delhi) Amendment Bill was first tabled in 2015. It’s passed again in August last year after the Centre had asked Delhi government to introduce some changes to the proposal.

Delhi Government’s new Amendment to Minimum Wages Act, with a provision of imprisonment and a fine of Rs. 20,000 on employers for not paying minimum wages, gets the President’s assent.

Here are some important details about the new law:

  • The court before which the prosecution complaint is made under Section 22 of the Act will dispose of it within a month from the date of filing.
  • The employer needs to upload the employee data on website or web portal in the way as may be prescribed.
  • The amended act says, “the employer shall pay him (employee) for every hour or for part of an hour so worked in excess at the overtime rate fixed under this Act which shall not be less than two times of the normal rate of wages fixed under this act or under any law of the appropriate Government for the time being in force, whichever is higher.
  • Faulty employers can be punished with up to 1 to 3 years jail term, or with fine up to Rs. 20,000 to 50, 000, or with both.

Latest labour law judgements may 2018

  • Absence of registration and license under CLRA Act will not entitle contract workers to be employee of principal employer. – Pat. HC 488
  • Non-submission of preparation form and returns are punishable under ESI Act. – Mad. HC 495
  • Gratuity payable for 22 years being on daily wages 3 years before regularization. – Supreme Court 461
  • Death due to heart attack while on duty, not always an ‘accident’ for compensation. – Del. HC 464
  • For challenging VRS after accepting benefit, the whole amount is to be returned. – Karn. HC 500
  • Dismissal for unauthorized absence set aside when the workman suffered grievous injuries and was hospitalized. – Mad. HC 546
  • Mere pendency of proceedings with BIFR not sufficient for recovery of EPF dues. – Pat. HC 564
  • No appeal lies against levy of interest for delayed deposit of EPF dues. – Del. HC 549
  • After coverage, employer cannot contend that in separate entities employees were less than 20. – Mad. HC 555
  • Failure of employer to respond to notice by EPF justifies presumption of non-cooperation. – Pat. HC 567
  • Illegal withholding of pension will be payable with interest @ 8.5% per annum. – Raj. HC 570
  • Employer is liable to pay damages with interest upon the delayed payment. – Pat. HC 564
  • EPF Authority can recover dues in the absence of stay order. – Pat. HC 564

Admin charges payable by the employer on EPF amended WEF 01.06.2018

Government reduces normal administrative expenses payable by the employer with effect from 1st June 2018 at 0.50% of the pay subject to a minimum sum of seventy-five rupees per month for every non-functional establishment having no contributory member and five hundred rupees per month per establishment for other establishments. Earlier the charge was revised to 0.65% from 01.04.2017 and will remain applicable until 31st May 2018.

Government notifies 8.55% interest on PF for 2017-18, lowest in 5 years

The government has finally notified 8.55% interest rate on EPF for 2017-18, lowest in 5 years since the 2012-13 fiscal. With this, the Employees’ Provident Fund Organization has asked its more than 120 field offices to credit 8.55% rate of interest for 2017-18 into the PF accounts of close to 5 crore subscribers.

The EPFO had provided 8.65% interest for 2016-17. The members got 8.8% in 2015-16 and 8.75% each in 2014-15 and 2013-14. In 2012-13, EPFO had provided 8.5% rate of interest on EPF. Thus, at 8.55% for 2017-18, it is a five year low.

Exemption from payment of late fee of the Maharashtra State Tax

Due to technical difficulties in Mahagst.gov.in website, many employers’ uploads are pending for the Maharashtra PT monthly and annual return from March 2018 onwards. So Maharashtra Government exempts whole of the late fee payable by the registered employer, in respect of the monthly or annual PTRC returns pertaining to the periods April 2016 to June 2018 is being exempted, subject to the fulfillment of eligibility condition.

Professional Tax slab rate for Chennai Corporation :

Minimum Wages – Haryana and Chandigarh