
Compliance Calendar for Nov, 2017
Professional Tax – States – Remittances
Cabinet approves introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament

he Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament. The Amendment will increase the maximum limit of gratuity of employees, in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.
The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. With implementation of 7th Central Pay Commission, in case of Government servants, the ceiling now is Rs. 20 Lakh.
The main purpose for enacting this act is to provide social security to workmen after retirement, whether retirement is a result of the rules of superannuation, or physical disablement or impairment of vital part of the body.
Correction in name of PF member

As per the existing provisions, correction in the member’s name or his/her father’s/spouse’s name is to be made on receipt of joint request of the employee as well as the employer along with the supporting documents. Such corrections are to be approved by RPFCII/OIC in case of SRO and RPFC (F&A) in case of RO. A part of these powers was subsequently ‘delegated to APFC(Accounts), only in the case of correction of spelling mistakes in names up to two letters and change of surname in case of female employees on account of marriage.
On this delegation, various issues have been highlighted by the field offices that presently adequate number of RPFC-II level officers are not available in many of the field offices. As a result, RPFC-I/OIC are handling this work in addition to their regular assignments which is hampering the speedy disposal of such cases.
After reviewing the above, it has been decided that henceforth powers for correction in the name of PF member shall be delegated to one or two APFCs authorized by the OIC for the purpose. This delegation shall be applicable in all the cases of name correction of PF member.
Contractor is liable for terminatin of his worker

When we have engaged a contractor on the basis of an agreement whereby the contractor will be liable for payment of wages as well as supervision and control off his workers. One of the workers having been dismissed has raised in industrial dispute and make us a party before the labour court. In such a cases, as a principal employee we cannot be held liable in case any relief is granted like reinstatement or back wages. Such a question should not arise since there’s privity of contract between your establishment in the capacity of principal employer. There are other factors in the determining factors are 1)application seeking appointment by the worker 2)appointment letter 3)wage register etc.. Accordingly, such a claim, dispute or demand against your establishment would not be tenable.
Probationer and His termination

Initially we engage every employee on probation. Probation period entitles the management to assess the efficiency, regularity, sincerity of probationer, gauge his propensity, involvement in criminal or disciplinary miss conduct while deciding his suitability for continuation in service or discontinuation from services. The management for being not satisfied with the performance cannot be asked to provide its justification. Domestic enquiry is not required when the termination of services of the probationer is not stigmatic