From all the discussions above, I have found that minimum wages fixed by the state governments may be split into allowances to reduce the P.F. liability of the employer in the light of the order of the Honorable Punjab & Haryana High Court.
So far, concerning the views of Mr. PBSKUMAR, it would be in litigation until the decision of the Honorable Supreme Court or amendment in the Act by the parliament.
I. M. ANAND
From India, Chandigarh
17So far, concerning the views of Mr. PBSKUMAR, it would be in litigation until the decision of the Honorable Supreme Court or amendment in the Act by the parliament.
I. M. ANAND
From India, Chandigarh
Dear All,
Greetings for the day,
This is an important information from Mr. Kunwar Vikram Singh , Chairman of Central Association of Private security Industry-India clerifies
"Dear Friends,
I would like to inform you that Delhi High Court has given its orders in regard to a petition filled by CAPSI against the notification issued by the EPF department directing all PSA to deduct EPF on Minimum Wages.
Now the EPF department has given an Undertaking vide an affidavit to the Delhi High Court that that the Circular No. Coord/4/(6) 2003/Clarification/VolII/7394 dated 23.05.2011 on minimum wages has been withdrawn and has been kept in abeyance till the outcome of the SLP (C) No.20085/2011, which is pending before the Hon’ble Supreme Court. The submission of the PF department has been recorded in the order dated 01.05.15.
The Orders of the Delhi High Court is attached herewith for your information."
order enclosed for the reference.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Greetings for the day,
This is an important information from Mr. Kunwar Vikram Singh , Chairman of Central Association of Private security Industry-India clerifies
"Dear Friends,
I would like to inform you that Delhi High Court has given its orders in regard to a petition filled by CAPSI against the notification issued by the EPF department directing all PSA to deduct EPF on Minimum Wages.
Now the EPF department has given an Undertaking vide an affidavit to the Delhi High Court that that the Circular No. Coord/4/(6) 2003/Clarification/VolII/7394 dated 23.05.2011 on minimum wages has been withdrawn and has been kept in abeyance till the outcome of the SLP (C) No.20085/2011, which is pending before the Hon’ble Supreme Court. The submission of the PF department has been recorded in the order dated 01.05.15.
The Orders of the Delhi High Court is attached herewith for your information."
order enclosed for the reference.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Dear All,
Please find attached a copy of the news item regarding the Union Labour Ministry's finalization of the proposed amendment to the EPF & MP Act 1952. This amendment will exempt HRA, Con all, etc., from the payment of PF contributions, with an option to join the National Pension Fund. If anyone has details of the final recommendations from the Labour Ministry, please upload them for the benefit of the members.
Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com
From India, Bangalore
Please find attached a copy of the news item regarding the Union Labour Ministry's finalization of the proposed amendment to the EPF & MP Act 1952. This amendment will exempt HRA, Con all, etc., from the payment of PF contributions, with an option to join the National Pension Fund. If anyone has details of the final recommendations from the Labour Ministry, please upload them for the benefit of the members.
Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com
From India, Bangalore
Hi seniors,
Please let me know if a builder is required to get covered as an employer if they do not employ more than 10/20 persons themselves, but instead, employ contract labor who may or may not be covered by the contractor under various labor laws. If various labor law departments ask the builder to produce records of projects they have completed and to provide details of the contractor's records, but the builder is unable to produce the records of the various contractors because the contractors do not provide their records to the builder. The employer may not be aware if the contractor is covered under various labor laws, but in the agreement, the contractor acknowledges that they shall comply with all labor laws applicable to the builder and be responsible for the payment of labor engaged by them to various departments.
From India, Chandigarh
Please let me know if a builder is required to get covered as an employer if they do not employ more than 10/20 persons themselves, but instead, employ contract labor who may or may not be covered by the contractor under various labor laws. If various labor law departments ask the builder to produce records of projects they have completed and to provide details of the contractor's records, but the builder is unable to produce the records of the various contractors because the contractors do not provide their records to the builder. The employer may not be aware if the contractor is covered under various labor laws, but in the agreement, the contractor acknowledges that they shall comply with all labor laws applicable to the builder and be responsible for the payment of labor engaged by them to various departments.
From India, Chandigarh
Dear Mr. Javed - Good Morning,
Refer to your query on "Splitting of Minimum Wages for EPF Contribution is Legal by EPF Appellate Tribunal against the order passed by EPF Authorities dated 26.04.2011 under Sec. 7A of EPF Act assessing PF Dues on allowances is also illegal.
The Tribunal has observed that the employer has bifurcated the Minimum Wages into Basic Wages, DA, HRA, Conveyance Allowance, etc. The employer has been paying employees' contribution only on the Basic Wages as provided under EPF Act 1952. The EPF Authority pleaded that PF dues can never be calculated on wages lower than the Minimum Wages. Accordingly, the authority has initiated proceedings under Sec. 7A of the Act, taking into consideration the Minimum Wages under the Minimum Wages Act and directed the employer to pay the contribution so determined. The Appellate Tribunal has opined that Minimum Wages have not been defined under the EPF Act, only Basic Wages is defined under the said Act. EPF Authority has no power to hold whether Minimum Wages amount to Basic Wages or not. While interpreting a provision of any Act, the court only has to interpret the law and cannot legislate it. If a provision of Law is misused and subjected to abuse of the process of Law, it is for the legislature to amend, modify, or repeal it if deemed necessary. There is no compulsion to hold that the definition of Basic Wages should be equated to the definition of Minimum Wages under the Minimum Wages Act as per law settled by the courts. The employer is liable to deduct PF Contribution on Basic Wages and DA as defined under subsection 2(b) read along with section 6 of EPF & Misc. Provisions Act 1952 and not on Minimum Wages Act 1948. Hence, the impugned order is set aside, and the appeal is allowed in the case of M/s. Syncom Healthcare Ltd Vs RPFC Indore (ATA No. 448(08)2012, dated 08.09.2014).
Thanks & Regards,
V R Rao Pulipaka
From India, Chennai
Refer to your query on "Splitting of Minimum Wages for EPF Contribution is Legal by EPF Appellate Tribunal against the order passed by EPF Authorities dated 26.04.2011 under Sec. 7A of EPF Act assessing PF Dues on allowances is also illegal.
The Tribunal has observed that the employer has bifurcated the Minimum Wages into Basic Wages, DA, HRA, Conveyance Allowance, etc. The employer has been paying employees' contribution only on the Basic Wages as provided under EPF Act 1952. The EPF Authority pleaded that PF dues can never be calculated on wages lower than the Minimum Wages. Accordingly, the authority has initiated proceedings under Sec. 7A of the Act, taking into consideration the Minimum Wages under the Minimum Wages Act and directed the employer to pay the contribution so determined. The Appellate Tribunal has opined that Minimum Wages have not been defined under the EPF Act, only Basic Wages is defined under the said Act. EPF Authority has no power to hold whether Minimum Wages amount to Basic Wages or not. While interpreting a provision of any Act, the court only has to interpret the law and cannot legislate it. If a provision of Law is misused and subjected to abuse of the process of Law, it is for the legislature to amend, modify, or repeal it if deemed necessary. There is no compulsion to hold that the definition of Basic Wages should be equated to the definition of Minimum Wages under the Minimum Wages Act as per law settled by the courts. The employer is liable to deduct PF Contribution on Basic Wages and DA as defined under subsection 2(b) read along with section 6 of EPF & Misc. Provisions Act 1952 and not on Minimum Wages Act 1948. Hence, the impugned order is set aside, and the appeal is allowed in the case of M/s. Syncom Healthcare Ltd Vs RPFC Indore (ATA No. 448(08)2012, dated 08.09.2014).
Thanks & Regards,
V R Rao Pulipaka
From India, Chennai
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