Shri K.K. Jalan, Central P.F. Commissioner told press reporters that EPFO has finally been able to resolve a major problem of employers, covered under Employees’ P.F. & M.P. Act, 1952, with regard to State Bank of India.

1. STRICTLY STATUTES
A Newsletter from ADP India
EDITOR’S NOTE
FEBRUARY
2014
TABLE OF CONTENTS
Pages
Hello Readers,
We start by detailing the compliances due in
the month of February.
This month's round up of important
judgements include the disposal of a protest
levying interest by the RPFC, and that
abandonment cannot be presumed without
a proper enquiry. The Delhi High Court has
held that misuse of a loan taken for house
construction would justify dismissal and in
another landmark judgement, that sexual
harassment of an employee would justify
forfeiture of gratuity.
In other important news, the State Bank of
India has agreed to issue receipts for EPFO
cheques that were being deposited by
employers in the drop boxes at bank
branches.
The Gujarat High Court has held that
women can do night shifts as it is a
fundamental right.
A labour department survey, conducted in
some tea plantations across West Bengal,
has found several instances of labour acts
being violated.
The EPFO has cleared 28% more claims for
the month of October 2013 as compared to
the earlier month. Recoveries are also
being
accelerated. The
Employees’
Provident Fund Organisation in an internal
circular to all its Regional Commissioners
has asked them to draw up action plans to
speed up recovery of arrears.
We hope you find the contents of this
newsletter relevant and useful. We
welcome your suggestions and inputs for
enriching content as well as your feedback.
Please write to: contactadp@adp.com
Compliance Calendar for Feb 2014
02
An appeal protesting levy of interest by
RPFC is not…
03
Abandonment cannot be presumed
when…
03
Misuse of loan taken for construction of
house would…
04
Sexual harassment of an employee
would…
04
SBI agrees to issue receipt for EPFO
cheques!
05
Women can do Night Shifts in Gujarat!
05
Violation of Labour Laws in Tea
Plantations…
05
EPFO settles 28% more claims in one
month!
Action plan to recover PF arrears…
06
06

2. Page 02
STRICTLY STATUTES
A Newsletter from ADP India
Compliance Calendar for February 2014
Due Date
Scope
Due Under
Mode
Professional Tax Remittances
10th Feb 14
Andhra Pradesh & Madhya Pradesh
State-wise regulations
By Challan
15th Feb 14
Gujarat
Gujarat PT regulations
By Challan
15th Feb 14
Tamil Nadu
Tamil Nadu PT regulations
By Challan
20th Feb 14
Karnataka
Karnataka PT regulations
By Challan
21st Feb 13
30th Aug 14
West Bengal
Maharashtra, Assam & Orissa
WB PT regulations
State Wise regulations
By Challan
28th Feb 13
30th Aug 14
Kerala, Maharashtra, & Orissa Orissa
Maharashtra, Assam Assam &
State-wise regulations
State Wise regulations
By Challan
Kerala
Kerala State Labour
Welfare Fund
By Challan
15th Feb 14
Central - Remittance of Contribution
EPF & MP Act 1952
By Challan
15th Feb 14
Central - International worker with wages
and nationality
EPF & MP Act 1952
Statement in 7 I W
Main Code & Sub Codes - Remittance of
Contribution
ESIC Act 1948
By Challan
Annual Return
Payment of Wages Act
By Return in
Form IV
Annual Return by Principle Employer
CLRA Act
By Return in
Form XXV
Labour Welfare Fund Remittances
20th Feb 14
PF
ESI
21st Feb 14
Wages
15th Feb 14
CLRA
15th Feb 14

3. Page 03
STRICTLY STATUTES
A Newsletter from ADP India
Important Judgements
An appeal protesting levy of interest by RPFC is not defensible before
EPF appellate tribunal
In a classic case of Arcot Textiles Mills Ltd Vs Regional Provident Commissioner and others, the supreme court
bench comprising Honourable Justice Mr. Anil R Dave and Honourable Justice Mr. Dipak Mishra pronounced that no
appeal under Section 7-I of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 is maintainable
for challenging the order passed by the EPF authority, imposing only interest under Sec 7-Q of the Act.
An order passed by the EPF authority determining the EF dues towards employer and imposition of interest there-on
for belated remittance is a composite order under section 7A and 7Q of the Employees’ Provident Fund and
Miscellaneous Fund Act, 1952 and is appealable before the EPF appellate tribunal.
Once the statutory authority takes recourse to the measure for the computation of interest and sends a blunt order,
the affected person can definitely ask for a clarification or raise objections as there can be errors with regard to the
period and the calculation.
Abandonment cannot be presumed when no enquiry is held for
UNAUTHORIZED absence
In a case of M/s O K Play India Ltd Vs Raj Kumar and another, the Punjab &
Haryana High court bench comprising honourable Justice Mr. Jasbir Singh
and honourable Justice Rakesh Kumar Jain pronounced that a domestic
enquiry needs to be conducted by following the principles of natural justice,
to provide on record that the delinquent employee was unauthorizedly
absent. To conclude on the basis of presumption that the delinquent has
abandoned his job on his own is untenable.
Presumption that an employee that an employee has abandoned his job on
his own without conducting a proper enquiry is a violation of provisions of
section 25-F of the Industrial Disputes Act, and will result in the
reinstatement of the workman with full back wages and continuity of
services.
Awarding lump sum compensation instead of reinstatement is not justified
only on the ground that a long period has expired in litigation, if the delay is
not due to any fault of the workman.
When the workman has pleaded that he remained unemployed since the
date of illegal termination of his service, which has not been rebutted by the
management, the workman would be entitled to back wages.

4. Page 04
STRICTLY STATUTES
A Newsletter from ADP India
Misuse of loan taken for construction of house would justify dismissal
In an historical case of S K Taqul Vs Cement Corporation of
India, the Delhi High Court bench comprising honourable
Chief Justice Mr. Muruugesan and Honourable Justice VK
Jain pronounced that non-usage of loan taken for
construction of house is a major misconduct justifying
punishment of dismissal from service.
In the absence of documentary evidence such as
receipt/bills of construction materials, The stand of the
workman that, rains and floods has destroyed his
construction materials purchased by him is not justified.
A flee of fact, if not taken in reply to show cause notice,
memorandums and statement of claim, by the workman, is
not permissible before high court or later on.
Sexual harassment of an employee would justify forfeiture of gratuity
In a land mark case of PK Kataria Vs Chairman and Managing Director, National Fertilizers Limited, the Delhi High
Court led by honourable Justice Mr. Valmiki J Mehta pronounced that gratuity can be withheld or forfeited if the
employee has caused pecuniary loss to the employer by his misconduct or negligence during his service duly proved
by conducting domestic enquiry.
Gratuity can be withheld if charge-sheeted employee is guilty of moral turpitude which must have been proved by
conducting domestic enquiry in the course of employment of the employee with the employer. Also, it has to be noted
that the sexual harassment of a female employee or questionable acts of personal morals is covered under the term
“moral fortitude”.

5. Page 05
STRICTLY STATUTES
A Newsletter from ADP India
News to note
SBI agrees to issue receipt for EPFO cheques
Shri K.K. Jalan, Central P.F. Commissioner told press reporters
that EPFO has finally been able to resolve a major problem of
employers, covered under Employees’ P.F. & M.P. Act, 1952, with
regard to State Bank of India. Earlier, SBI was not giving receipt
of cheques/draft etc. which were being deposited by employers
by dropping the same in the drop box at bank branch. There were
some instances of delay in clearance of cheques. Damages and
interest had to be imposed by EPFO in delayed payment cases by
the employer.
This issue was taken up personally by Central P.F. Commissioner
with the Chairman, State Bank of India. SBI has now directed all
its branches to issue receipt of cheques at the counter in the branch against deposit of EPF dues. Shri K.K.
Jalan further stated that in case employer faces any problem, the Addl. Central P.F. Commissioners and
Regional P.F. Commissioners at field offices of EPFO may be contacted.
This also can be referred with EPFO Letter No. Bkg./7(1)2004/NBA/Vol.VI/16205 dated 30 .12. 2013 and SBI
Letter No. SME./L&TP/156 dated 06.12.2013
Women can do Night Shifts
in Gujarat
Violation of Labour Laws
A labour department survey, conducted in some
Gujarat High Court has held that women can be
employed in night shifts, and provisions in
Factories
Act,
1948
which
bars
it
is
unconstitutional. Section 66(1)(b) of the act
prohibits industrial units form employing women
form 7 pm to 6 am. The division bench of Chief
tea plantations across West Bengal , has found
several instances of labour acts being violated,
said the state labour minister, Mr. Purnendu
Bose. The department had conducted the survey
in 278 tea plantations located in the region to get
inputs from the ground.
Justice Bhaskar Bhattacharya and Justice J B
The scenario is dismal on the front of provident
Pardiwala
fund and gratuity. We will release the survey
said the section is in breach of
fundamental rights guaranteed under Article 14
(right to equality) of the constitution, so it was
invalid.
report soon, said the minister.

6. Page 06
STRICTLY STATUTES
A Newsletter from ADP India
EPFO SETTLES 28% MORE CLAIMS
IN ONE MONTH
ACTION PLAN TO RECOVER PF
ARREARS
Employees’ provident Fund Organisation settled
10.21 lakh claims including transfer and
withdrawals of Provident Fund in October 2013,
which is 28% more than such settlements in
September 2013.
The Employees’ Provident Fund Organisation in an
internal circular to all its Regional Commissioners to
draw up action plans to speed up recovery of arrears.
It said 72% of these claims were settled within 10
days while remaining 28% were settled within 30
days. Besides improving performance on claims
front, the body has also reduced the number of
grievances considerably.
As on March 31, 2013, an outstanding of Rs. 4,157
crore was to be recovered from defaulting
establishments, according to the organization. The
circular has set a target for recovery and had also
instructed that independent dossiers be maintained
of each establishment having arrears of 1 lakh or
above.
It is given to understand that there is a total of 88,730
companies did not deposit PF and allied dues with
EPFO, with Tamil Nadu having the highest number of
defaulting companies till Sep 2012, the highest
amount was due from companies based in Delhi.

7. Page 07
STRICTLY STATUTES
ADP Global
A Newsletter from ADP India
ADP India
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