Here are the important points from the full judgments on Employees' Provident Funds and MP Act for the month of Aug 2023:
1. Director cannot be prosecuted when he has no control over the day-to-day affairs of the company. (Cal. HC)
2. Even a single day's delay in depositing EPF dues invites penal consequences. (Bom. HC)
3. Although not justifiable for escaping liability, financial crises can be overlooked by the EPF authorities. (Cal. HC)
4. Trainees under standing orders are not covered under the EPF Act. (Mad. HC)
5. Levy of damages along with interest can be challenged before the Tribunal, not in the writ petition. (Mad. HC)
6. Stipends paid to apprentices under the Apprentices Act are not considered wages to attract EPF contribution. (Mad. HC)
7. Damages for delayed deposit of EPF contributions can only be levied when the employer is properly heard. (Karn. HC)
8. The EPF Act is applicable to municipalities. (Mad. HC)
9. Levy of damages for delayed deposit is a quasi-judicial function, hence defaulters must be given a reasonable opportunity. (Karn. HC)
10. Directors are not employees within Explanation 2 of sections 405 and 406 of IPC. (Cal. HC)
11. Trainees receiving a stipend are excluded under the EPF Act. (Mad. HC)
12. Workers of contractors are also covered under the EPF Act. (Mad. HC)
13. Discretionary powers to vary the percentage of damages rest with the EPF authority. (Karn. HC)
14. Penal damages are to be levied for non-deposit of EPF contribution for a terminated employee. (Ker. HC)
15. No leniency for levy of damages on habitual defaulting employers, even when there were no financial crises. (Karn. HC)
16. An order passed for the levy of damages must be a reasoned one. (Cal. HC)
17. Fastening liability on excluded establishments is legally unsustainable. (Bom. HC)
18. Directors are not personally liable to pay EPF dues. (Cal. HC)
Please note that these points are a summary and it is always advisable to refer to the full judgments for complete understanding and context.
From India, Mumbai
321. Director cannot be prosecuted when he has no control over the day-to-day affairs of the company. (Cal. HC)
2. Even a single day's delay in depositing EPF dues invites penal consequences. (Bom. HC)
3. Although not justifiable for escaping liability, financial crises can be overlooked by the EPF authorities. (Cal. HC)
4. Trainees under standing orders are not covered under the EPF Act. (Mad. HC)
5. Levy of damages along with interest can be challenged before the Tribunal, not in the writ petition. (Mad. HC)
6. Stipends paid to apprentices under the Apprentices Act are not considered wages to attract EPF contribution. (Mad. HC)
7. Damages for delayed deposit of EPF contributions can only be levied when the employer is properly heard. (Karn. HC)
8. The EPF Act is applicable to municipalities. (Mad. HC)
9. Levy of damages for delayed deposit is a quasi-judicial function, hence defaulters must be given a reasonable opportunity. (Karn. HC)
10. Directors are not employees within Explanation 2 of sections 405 and 406 of IPC. (Cal. HC)
11. Trainees receiving a stipend are excluded under the EPF Act. (Mad. HC)
12. Workers of contractors are also covered under the EPF Act. (Mad. HC)
13. Discretionary powers to vary the percentage of damages rest with the EPF authority. (Karn. HC)
14. Penal damages are to be levied for non-deposit of EPF contribution for a terminated employee. (Ker. HC)
15. No leniency for levy of damages on habitual defaulting employers, even when there were no financial crises. (Karn. HC)
16. An order passed for the levy of damages must be a reasoned one. (Cal. HC)
17. Fastening liability on excluded establishments is legally unsustainable. (Bom. HC)
18. Directors are not personally liable to pay EPF dues. (Cal. HC)
Please note that these points are a summary and it is always advisable to refer to the full judgments for complete understanding and context.
From India, Mumbai
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