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Showing posts from December, 2016

President clears ordinance to let companies pay salary via bank transfer, cheque

Industries and businesses will have a free hand to pay employees their salary by cheque or direct bank transfer rather than cash on the next payday. President Pranab Mukherjee promulgated the ordinance to amend the Payment of Wages Act on Wednesday evening as proposed by the Union cabinet last week. The ordinance comes into force with immediate effect. The law – which currently covers those earning a monthly salary of Rs 18,000 or less – had mandated that employees be paid in cash only. It was amended during Emergency, in 1976, to give employers the option of crediting the salary into the employees’ bank account or pay by cheque. But this could be done only if the employer had a written authorisation from each worker. If there were employees who preferred to receive the money in cash, the employer could not, say, pay by cheque. The ordinance cleared by Rashtrapati Bhavan removes the requirement of obtaining written authorisation from workers. Labour minister Band

Employees’ State Insurance (Central) Third Amendment Rules, 2016

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Starting 1 January 2017, employers will need to make contributions under the ESI Act for a larger pool of employees since the wage ceiling for applicability of this statute has been increased from INR 15,000 to INR 21,000. Introduction Employees' State Insurance Act, 1948 ( ESI Act ) is a social security legislation aimed at providing benefits to employees in case of sickness, maternity, employment injury and certain other related matters. Under this self-financing health insurance scheme, funds are primarily built out of contribution from employers and employees. On 22 December 2016, the Ministry of Labour and Employment issued a notification increasing the wage limit for coverage under the ESI Act to INR 21,000. This change will come into effect on 1 January 2017. The wage ceiling was last raised in May 2010, where the wage limit was increased from INR 10,000 to INR 15,000. With the current increase to INR 21,000, the wage limit for ESI Act has been brought in line wit

Minimum Wages Daman from 1st Oct 2016

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New Minimum Wages of Daman is appended below which is declared on 2nd Dec 2016 the effective date of the same is 1st Oct 2016 MINIMUM WAGES 01 10 TO 31 03 20170001-Daman

Government Clarification on Amendment to Payment of Wages Act

It is seen from the media reports that there is a general impression that is being created that the Government is bringing an amendment to the Payment of Wages Act to make mandatory the payment of wages to the workers only through cheque or accounts transfers. This is not the correct position. It is clarified that the government proposes to bring an amendment to Section 6 of the Payment of Wages Act which will further provide crediting the wages in the bank account of the employees or payment through cheque along with the existing provisions of payment in current coin or currency notes. This is being done to facilitate the employers from making payment of wages using the banking facilities also in addition to the existing modes of payment of wages in current coin or currency notes. Also, the appropriate Government (Centre or State) will have to come up with the notification to specify the industrial or other establishments where the employer shall pay wages through cheque

Revision of Electronic Challan-cum-Return (ECR) - Forwarding of details thereof

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PF Coverage to be Optional in Textiles Industry

The Central government has finally taken away the mandatory status of the Employees’ Provident Fund Organization (EPFO), without amending the EPF Act. Perhaps it remains unnoticed, but the Union cabinet had changed EPFO’s status and communicated it through a cabinet release on textiles sector instead of any release in labour ministry. The cabinet statement said “The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to the reforms to boost employment generation and exports in the Made-ups Sector (a sub sector of textiles and apparel)… Simplification of labour laws: Making employees’ contribution to EPF optional for employees earning less than Rs15,000 per month,” This means, employees earning less than Rs15,000 per month in the ‘Made-ups’ sector are no more required to pay the mandatory EPF (Employees’ Provident Fund) contributions from their salary.

Amnesty Schemes for EPF and ESI Defaulters

This will give opportunity for the firms which have defaulted in payment of contributions of ESI and EPF to declare correct employment figures and ensure correctness in contribution henceforth onwards. Union Minister of State for Labour Bandaru Dattatreya announced two amnesty schemes from his department, one for the ESIC – Employees State Insurance Corporation and another for the EPF – Employees Provident Fund, to clean up the existing records of court cases or proceedings. Addressing a press conference at the State party office on 18 th  December, 2016, the Labour Minister said in that in both instances (EPF and ESI) there are lots of court cases pending for years and in several others proceedings have also been filed for wrong or under reporting of number of employees working or contributions made. Fresh registrations of the firms and the employees working under it can be made from December 20 till March 31, 2017 and once done all the existing old records would cease to exis

EPFO Proposes to raise PF Wage limit to Rs 25000/- per month

As per new Proposed Employees Provident Fund Amendment 2016 Employees with salary earning up to Rs.25,000 per month will be covered under Employees Provident Fund after the final approval Refer:-  http://streethr.blogspot.in/2016/12/epfo-takes-steps-to-cover-contract.html   The Employees’ Provident Fund Organisation (EPFO)  has written to the Centre Government requesting to increase exciting  PF wage ceiling  to Rs.25,000 from Rs. 15,000 per month for its social security schemes raising the opportunity of more workers being added to the provident fund scheme. All employees earning salary of up to Rs.25,000 per month will be eligible to receive provident fund coverage. At present, Employees Provident Fund is optional for workers earning more than Rs.15,000 per month since current wage limit fixed at Rs. 15,000 According to the minutes of the meeting of EPFO’s sub-committee on contract workers, held on November 7 stated  “It was (unanimously) decided that a proposal should be

Promoting and Ensuring Cashless Transfer of Wages to Workers

Promoting and Ensuring Cashless Transfer of Wages to Workers  Labour and Employment Ministry Efforts bring over Nine Lakh Workers into banking fold within six days  The huge efforts of Labour and Employment Ministry have succeeded in bringing over Nine Lakh workers into banking fold within six days of launching a campaign on 26th November. It may be noted that already 25.68 crore Jandhan Accounts are existing and all the left over workers are being covered.2016 to open bank accounts of workers. Till last evening (1st December,2016) 9,15,431(nine lakh fifteen thousand four hundred and thirty one) bank accounts were opened by organizing 33,145 (thirty three thousand one hundred and fort five) camps for this purpose. Within four days till 29th November, total 3,87,037 bank accounts were opened by holding 15,134 camps across the country. (We had already informed  premium regarding this camps) On30th November 9,085 camps were organized and 2,90,224 bank accounts were opened

Welfare of delivery boys - “Model Shops and Establishment (Regulation of employment and Conditions of Service) Bill 2016,

“Model Shops and Establishment (Regulation of employment and Conditions of Service) Bill 2016, T he working conditions of delivery boys working in online shopping portals are governed by Shops and Establishment Act of respective State Government and suitable action is taken by the respective State Government for any violation of the provisions of their Act. The Government of India have framed the “Model Shops and Establishment (Regulation of employment and Conditions of Service) Bill 2016, a Model Bill to bring about uniformity in the legislative provisions, making it easier for all the States to adopt it and thereby ensuring uniform working conditions across the country. It has been circulated to all States for adopting the same as it is or by modifying their existing State Shops and Establishment Act as per their requirement.  The Model Bill will cover only establishments employing ten or more workers except manufacturing units. The main provisions of the Model Bill

EPFO Takes Steps to Cover Contract Workers in Government Departments & Increase Wage Ceiling to Rs. 25000

EPFO Takes Steps to Cover Contract Workers in Government Departments  Last Date for Submission of Life Certificate Extended Till 15th January 2017 ECR 2.0, UAN 2.0 and PMRPY Services to be Made Operational from December 2016   A sub-committee of Central Board of Trustees, EPF met on 7th November 2016. The committee noted that the coverage of contract workers increased from 89.25 lakh to 1.02 crore.  The Committee however further noted that large number of contact workers in the country still remain deprived of PF benefits. This is because many Central Government Departments/ Organizations do not come under the purview of the EPF and MP Act, 1952. Considering the social security as the basic right of all workers, it decided to recommend to the Government of India for cancellation of exclusion to such categories, including Indian Railways. The Committee noted that transfer of accounts of contract workers is now possible through Universal Account Number (UAN). It was dec

ESI on Arrears

This question has come to me many times, and always find people are wrongly interpreting law.   As and when any increase in the wages/ remuneration is declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/ announcement .  Reference :- http://esic.nic.in/press/ESIC_FAQ_booklet.pdf http://www.esicmaharashtra.gov.in/htmldocs/esic_contribution_arrears.htm 

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All workers to get wages via banking channels

The Ministry of Labour and Employment is keen that the amendments to the Payment of Wages Act, 1936 are passed in the current session of Parliament itself in order to ensure that all industrial workers get their wages only through the banking channel and not otherwise. Proposed Amendment  The Payment of Wages Act, 1936 regulates the payment of wages of certain classes of employed persons. Section 6 of the Act envisages that all wages shall be paid in current coin or currency notes or in both. However, a proviso was inserted in section 6 of the said Act in the year 1975 enabling the employer, after obtaining the written authorization of the employed person, to pay him the wages either by cheque or by crediting the wages in his bank account.

The Payment of Bonus (Amendment) Rules, 2016.

Employers Need Not Submit Annual Return Under Payment Of Bonus Rules MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 6th December, 2016 G.S.R. 1115(E).—Whereas a draft of the Payment of Bonus (Amendment) Rules, 2016, further to amend the Payment of Bonus Rules, 1975, which the Central Government proposes to make in exercise of the powers conferred by section 38 of the Payment of Bonus Act, 1965 (21 of 1965), was published, as required by sub-section (1) of the said section 38, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification of the Government of India in the Ministry of Labour and Employment number G.S.R. 915(E), dated the 26th September, 2016 inviting objections and suggestions from all persons likely to be affected thereby, before the expiry of a period of thirty days from the date on which copies of Official Gazette containing the said notification was made available to the public; And whereas the copies of the sa

ESI Contribution – Single Challan for Main code and Multiple Sub code

HEAD QUARTERS OF OFFICE EMPLOYEES’STATE INSURGENCE CORPORATION All Regional Directors/Joint Directors incharge, Regional office/Sub Regional Ofiices/Divisonal Office. Single Challan for Main code and Muitiple Sub code. As per existing procedure, an employer have muitiple sub codes was required to file monthly contribution through sepret login and seprate Challan for generate Main code and Individual Sub Codes.Now additioanl challan have generated embedded. Employer file monthly contribution Main Code and Multiple sub code single excel sheet for single challan. The key of function  HEADQUEARTERS OF OFFICE EMPLOYEES’STATE INSURENCE CORPORATION All Regional Directors/Joint Directors incharge,Regional office/Sub Regional Ofiices/Divisonal Office. Single Challan for Main code and Muitiple Sub code. As per existing procedure, an employer have muitiple sub codes was required to file monthly contribution through sepret login and seprate Challan for g

Consumer Forum asks ESI to reimburse medical bill of worker employed at MSME unit, compensate for mental harassment

https://boardhr.blogspot.com/2020/04/consumer-forum-asks-esic-to-reimburse.html

Wage Discrimination Between Permanent And Temporary Employees

Equal Pay For Equal Work In India Temporary employees performing similar duties and functions as discharged by permanent employees entitled to draw wages at par with permanent employees in the government sector. Mere difference in nomenclature would not dis-entitle an employee from being paid the same wages as permanent employees. Any act of paying less wages as compared to others similarly situated, constitutes an act of exploitative enslavement. The constitutional principle of ' equal pay for equal work ' has been upheld by the Supreme Court of India (" SC ") with respect to temporary employees'  vis-à-vis  permanent employees in the government sector. In  State of Punjab and Ors. v.   Jagjit Singh and ors .( Decided on October 26, 2016) ,  the SC has ruled that temporary employees performing similar duties and functions as discharged by permanent employees are entitled to draw wages at par with similarly placed permanent employees. The principle m