December 2023: A Guide to Compliance Calendar and its Significance

Posted by & filed under Compliance -Calendar.

Navigating December 2023: A Guide to Compliance Calendar and its Significance

Introduction: As we approach the end of 2023, businesses and individuals alike are gearing up for a new wave of statutory changes set to take effect in December. To stay on top of these regulatory shifts, it’s crucial to have a well-organized compliance calendar. In this blog post, we’ll delve into the key statutory updates for December 2023 and explore the importance of compliance in today’s dynamic business environment.

Understanding the Compliance Calendar: A compliance calendar is a dynamic tool that helps businesses and individuals track and manage their regulatory obligations. It serves as a visual representation of statutory deadlines, reporting requirements, and other legal obligations that must be met within a specified timeframe. With the ever-changing landscape of laws and regulations, a compliance calendar becomes indispensable in ensuring that organizations stay on the right side of the law.

Key Statutory Changes for December 2023:

  1. Tax Revisions: December often marks the implementation of new tax laws or revisions to existing ones. Businesses and individuals need to be aware of changes in tax rates, filing deadlines, and any new compliance requirements to avoid penalties and ensure accurate financial reporting.
  2. Employment Regulations: Employment laws can undergo amendments, affecting areas such as minimum wage, overtime rules, or employee benefits. Staying abreast of these changes is crucial to maintain a fair and legally compliant workplace.
  3. Environmental Compliance: Many industries face evolving environmental regulations. December might bring about updates to environmental standards, emission limits, or waste disposal guidelines. Businesses should review and adjust their practices to align with these changes.
  4. Data Protection and Privacy: With the rising importance of data security, updates to data protection laws are common. Understanding and implementing changes to privacy regulations can prevent legal issues and safeguard sensitive information.

The Importance of Compliance:

  1. Legal Consequences: Non-compliance can lead to severe legal consequences, including fines, penalties, and legal actions. Maintaining a compliance calendar helps mitigate these risks by ensuring timely adherence to regulations.
  2. Reputation Management: Being compliant is not only about avoiding legal troubles but also about preserving reputation. Customers, partners, and stakeholders trust organizations that adhere to ethical and legal standards, contributing to long-term success and credibility.
  3. Operational Efficiency: A well-organized compliance calendar streamlines processes, making it easier for organizations to meet their obligations. This, in turn, enhances operational efficiency, reduces the risk of errors, and contributes to overall business effectiveness.
  4. Strategic Decision-Making: Compliance is intertwined with strategic decision-making. By staying informed about regulatory changes, businesses can make informed choices that align with current legal requirements and industry best practices.

Conclusion: As we approach December 2023, it’s imperative for businesses and individuals to embrace a proactive approach to compliance. A carefully curated compliance calendar not only helps navigate the upcoming statutory changes but also fosters a culture of responsibility and accountability. By understanding the significance of compliance, organizations can position themselves for success in an ever-evolving regulatory landscape.

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Electronics Shop Repairing & Servicing Electrical Goods Is “Factory” Under ESI Act: Supreme Court

Posted by & filed under Supreme Court ESIC Judgment.

Employees' State Insurance Act, 1948: details you must know - iPleaders

Electronics Shop Repairing & Servicing Electrical Goods Is “Factory” Under ESI Act

M/S J.P.LIGHTS INDIA (appellant) and THE REGIONAL DIRECTOR E.S.I. CORPORATION, BANGALORE (respondent). The case involves the appellant’s challenge against the order of the Employees State Insurance Court, Bangalore, regarding the applicability of the Employees State Insurance Act, 1948.

The key points in the document include:

  1. The appellant, a sole proprietorship firm, challenged the orders and notices of recovery issued by the respondent-Corporation under the Employees State Insurance Act.
  2. The ESI Court dismissed the appellant’s plea, and the High Court upheld the decision, leading to the current appeal in the Supreme Court.
  3. The appellant argued that it does not fall under the definition of “Factory” as defined in the ESI Act and the Factories Act, 1948.
  4. The Supreme Court examined relevant provisions of the ESI Act and the Factories Act, particularly the definitions of “factory” and “manufacturing process.”
  5. The Court concluded that the appellant’s business of selling and repairing electrical goods falls under the definition of a “Factory” and involves a “manufacturing process.”
  6. The appellant’s use of electrical energy for selling and repairing electrical goods is considered as using “power” as defined in the ESI Act.
  7. The Court upheld the decisions of the lower courts and dismissed the appeal as meritless.

The order was delivered on 27th July 2023 by Justices Hima Kohli and Rajesh Bindal in New Delhi. The appeal was dismissed, and each party was directed to bear its own expenses.

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Transfer of Accounts after the death of member for calculation of Assurance Benefit under EDLI Scheme, 1976.

Posted by & filed under Uncategorized.

Transfer of Accounts after the death of member for calculation of Assurance Benefit under EDLI Scheme, 1976: EPFO

Good Move by the EPFO regarding the EDLI Scheme. Focusing on verifying previous memberships and facilitating PF account transfers after a member’s passing demonstrates a commitment to fairness and the well-being of employees and their families.

Employees’ Provident Fund Organization (EPFO) addresses concerns regarding the calculation of Assurance Benefit under the Employees’ Deposit Linked Insurance (EDLI) Scheme after the death of a member. Let’s break down the key points:

  1. Background:
    • The EPFO has observed instances where beneficiaries receive insufficient amounts in the settlement of EDLI claims for deceased members.
    • The issue arises when deceased members have multiple Provident Fund (PF) accounts linked to their Universal Account Number (UAN).
  2. Verification of Previous Memberships:
    • To address this, the EPFO emphasizes the need for verification of previous PF accounts linked to a UAN.
    • Manual verification from the Management Information System (MIS) is crucial before settling death claims.
    • The document refers to the Manual of Accounting Procedure, specifying the procedure for the transfer of accounts after the death of a member.
  3. Transfer of Accounts:
    • The Manual suggests that if a PF account hasn’t been transferred during the member’s lifetime due to various reasons, the Regional Provident Fund Commissioner may facilitate the transfer without insisting on a transfer application.
  4. Importance of Previous Membership Transfer:
    • Referring to an EDLI Scheme amendment, the document highlights that continuous services of 12 months with two different establishments will count for calculating EDLI benefits.
    • However, this is only possible when the previous membership of the deceased worker is transferred to the current PF account.
  5. Directive for Verification:
    • The document directs officials to ensure that service records under different Member IDs (MIDs) have been transferred and considered in the calculation of payable benefits.
    • Special attention is required in cases where the payable benefit is less than the minimum assurance benefit of 2.5 Lakhs.
  6. Coverage Status Check:
    • Officials are instructed to check the coverage status of the concerned establishment/employer under the EPF & MP Act, 1952.
    • Any discrepancy in the date of coverage should be investigated.
  7. Conclusion:
    • The document was issued with the approval of the Central Provident Fund Commissioner (CPFC).
    • It stresses the importance of meticulous verification to avoid depriving the deceased worker’s family of eligible EDLI benefits.

In essence, this communication underscores the significance of accurately transferring and consolidating previous PF memberships to ensure that the calculation of benefits under the EDLI Scheme is carried out correctly for the beneficiaries of deceased members.

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Manipur Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2021

Posted by & filed under Manipur-Shop Act.

Manipur government restricts use of press stickers, jackets to curb misuse - Sentinelassam

Manipur Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2021. This legislation appears to focus on regulating employment and working conditions in shops and establishments within the state of Manipur. Here’s a summary based on the points you’ve mentioned:

  1. Effective Date: The Act is deemed to have come into force on June 29, 2021.
  2. Applicability: The Act applies to all Shops and Establishments employing 10 or more workers.
  3. Exemptions: The Act does not apply to certain categories, including:
    • Workers in confidential, managerial, or supervisory positions.
    • Workers with inherently intermittent work.
    • Shops or establishments run by the Union State government or local authority.
    • Officers of the Reserve Bank of India.
    • Family members of the employer.
    • Establishments used for the treatment or care of the sick, infirm, destitute, or mentally unfit.
  4. Provisions for Health and Safety: The Act includes provisions related to the health and safety of workers. This may cover aspects such as workplace conditions, safety standards, and measures to ensure the well-being of employees.
  5. Working Hours: The Act incorporates provisions related to the fixing of working hours for the covered workers. This could include defining standard working hours, overtime regulations, and other relevant aspects to ensure fair and reasonable working conditions.

It’s important to note that the specific details and nuances of the Act would be available in the text of the legislation itself. If you have any specific questions or if there are additional points, you’d like more information on, feel free to ask

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Bombay High Court Grants Compensation To BATA Salesmen Fired For Opposing Showrooms Opening 7 Days A Week With Extended Hours.

Posted by & filed under High Court Judgements.

அதிக வேலை நேரத்தை எதிர்த்ததால் டிஸ்மிஸ்.. கறார் காட்டிய பாட்டாவுக்கு பெரும் அபராதம்.. ஹைகோர்ட் | Court orders compensation of Rs 33 lakh to sacked workers by Bata - Tamil ...

  • This legal case involves a group of seven former salesmen employed by Bata India Ltd, a footwear manufacturing company. In 2007, the company modified its operating hours for showrooms in Mumbai, Thane, and Pune, requiring them to be open seven days a week with extended hours. Some salespersons opposed the altered working hours and lack of a designated weekly holiday, resulting in their termination by Bata.
  • The terminated salesmen filed complaints under Section 28(1) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971 (MRTU & PULP Act) before the Labour Court. The Labour Court ruled in favor of the salesmen, considering them ‘workmen’ under the Industrial Disputes Act, and awarded reinstatement with 50 percent back wages. The industrial court upheld this decision.
  • Bata challenged the decision, arguing that the salesmen were not workmen and, therefore, the Labour Court had no jurisdiction over the dispute. The primary contention was that the salesmen were ‘sales promotion employees’ and did not fit the definition of ‘workman’ involving manual, unskilled, skilled, technical, operational, or clerical work.
  • The Bombay High Court rejected Bata’s argument, considering the various duties and responsibilities outlined in the standing orders and regulations formulated by Bata. The court concluded that the multifaceted duties, including customer service, cash handling, administrative tasks, and quality control, indicated that the salesmen could be considered ‘workmen’ under the provisions of the Industrial Disputes Act.
  • The court found that Bata had terminated the salesmen without conducting any inquiry into the alleged misconduct, deeming the terminations illegal. While the court refused to reinstate the salesmen after 16 years, it awarded compensation ranging from 19.5 lakhs to 33 lakhs to each affected salesman, representing approximately 75 percent of their back wages for the last 16 years.
  • In summary, the Bombay High Court upheld the salesmen’s status as workmen, declared their terminations illegal, and ordered Bata to pay compensation to each affected salesman within four months, along with 8 percent per annum interest if not provided within the stipulated period.
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Punjab & Haryana High Court Declares 75% Domicile Quota For Haryana Locals In Private Sector As Unconstitutional

Posted by & filed under Punjab& Haryana High Court.

High Court Declares 75 percent Reservation For Haryana Locals In Private Sector As Unconstitutional

Punjab & Haryana High Court Declares 75% Domicile Quota For Haryana Locals In Private Sector As Unconstitutional

1. Introduction of the Act (Haryana State Employment of Local Candidates Act, 2020):

  • The Act was introduced in the Haryana State Assembly in 2020.
  • The background of the Act was stated as the influx of a large number of migrants competing for low-paid jobs, impacting local infrastructure and housing, leading to slums and environmental and health issues.
  • The Act aimed to give preference to local candidates in low-paid jobs for social, economic, and environmental reasons.

2. Legal Challenge:

  • Several petitions were filed challenging the constitutionality of the Act.
  • One of the petitioners, Faridabad Industries Association, argued that the Act represented an unprecedented intrusion by the government into the fundamental rights of private employers under Article 19 of the Constitution.
  • The petitioner contended that the restrictions imposed by the Act were arbitrary, capricious, excessive, and uncalled for.

3. Constitutional Concerns Raised by Petitioners:

  • The Act was argued to be contrary to the principles of justice, equality, liberty, and fraternity laid down in the Preamble of the Constitution.
  • It was also contended that the Act violated the right to equality enshrined in Article 14 and Article 19 of the Constitution.
  • The petitioners claimed that the Act posed a serious threat to the unity and integrity of the country by creating a wedge between persons domiciled in different states.

4. Proceedings in the High Court:

  • The High Court considered four key issues:
    • Whether the Writ Petitions are maintainable.
    • Whether the State has legislative competence to pass the Impugned Act.
    • Whether the State can implement reservation policy in the private sphere.
    • Whether the Act amounts to a reasonable restriction.
  • All four issues were decided in favor of the petitioners.

5. High Court’s Decision:

  • The High Court, through a bench consisting of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan, declared the Haryana State Employment of Local Candidates Act, 2020, as unconstitutional and violative of Part III of the Constitution.
  • The Act was set aside, meaning it was rendered ineffective.

6. Stay Order and Supreme Court’s Involvement:

  • Earlier, the High Court had stayed the operation of the Act in 2022.
  • The Supreme Court, on appeal by the High Court, lifted the stay and requested an expeditious decision on the matter.
  • Private employers were protected from coercive action under the legislation until the final outcome of the case.

7. Legal Representation:

  • Various advocates and senior advocates represented the petitioners and the state of Haryana during the proceedings.

8. Final Verdict:

  • The High Court’s final verdict was in favor of the petitioners, striking down the domicile reservation in the private sector jobs in Haryana.

The case title is “IMT Industrial Association and another v. State of Haryana and connected cases.” The judgment is detailed and would provide a comprehensive understanding of the court’s reasoning in this matter.

 

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Key amendments introduced by the Ministry of Finance through the Public Provident Fund (Amendment) Scheme, 2023

Posted by & filed under Public Provident Fund.

Public Provident Fund: PPF Eligibility, Benefits, Features & more

An official government notification (G.S.R. 831(E)) outlining an amendment to the Public Provident Fund (PPF) Scheme, 2019. Let’s break down the key points:

Legal Authority:

The changes are made under the authority granted by section 3A of the Government Savings Promotion Act, 1873 (Act number 5 of 1873).

Specific Amendment:

The focus of the amendment is on paragraph 13 of the Public Provident Fund Scheme, 2019.The change occurs in the second proviso of paragraph 13.The words “or the date of extension of the account” are being replaced with “or from the date of commencement of the current block period of five years.”

The Central Government is introducing a scheme to further amend the existing Public Provident Fund Scheme, 2019.The amended scheme is named the “Public Provident Fund (Amendment) Scheme, 2023.”

Effective Date:

The amendment comes into force on the date it is officially published in the Official Gazette

Specific Amendment:

The focus of the amendment is on paragraph 13 of the Public Provident Fund Scheme, 2019.The change occurs in the second proviso of paragraph 13.The words “or the date of extension of the account” are being replaced with “or from the date of commencement of the current block period of five years.”

Simplified Summary:

The government, utilizing its authority under the Government Savings Promotion Act, 1873, has introduced an amendment to the Public Provident Fund Scheme, 2019. This amendment is part of the “Public Provident Fund (Amendment) Scheme, 2023,” effective from the date of its official publication in the Official Gazette.

The specific change involves adjusting the language in paragraph 13 of the PPF Scheme, particularly in the second proviso. Instead of referring to the date of extending the account, the amendment now considers the date of commencement of the current block period of five years. This change is designed to provide more clarity in the rules governing the extension of PPF accounts.

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Loading And Unloading Workers Are Employees Under MV Act And Entitled To Compensation For Accidents Under Employees Compensation Act: Kerala High Court

Posted by & filed under Employee Compensation.

Loading and Unloading Workers Recognized as Employees Under MV Act: Kerala HC - Law Insider India

Case Summary: Abdul Razaque O.V., a loading and unloading worker for a tipper lorry owned by United India Insurance Company Limited, suffered injuries when a coconut tree being loaded fell on him. Seeking compensation, he filed an application under the Employees Compensation Act, 1923.

Insurance Dispute: The insurance company, while admitting the policy, contested liability, asserting that the policy didn’t cover risks associated with loading and unloading workers in the tipper lorry. The Employees Compensation Commissioner awarded compensation, prompting the insurance company to appeal under Section 30 of the Act.

Legal Question Raised: The appeal raised a legal question – whether loading and unloading workers of a tipper lorry owner are covered under the Motor Vehicles Act, 1988, specifically under clause (c) of the first proviso to Section 147(1).

Legal Arguments:The insurance company argued that the policy didn’t cover the worker’s risk, as he wasn’t the driver, conductor, or cleaner.Abdul Razaque argued that clause (c) of Section 147(1) of the Motor Vehicles Act covered loading and unloading workers.

Court’s Analysis:

  1. The court considered precedents and the wording of the Motor Vehicles Act, emphasizing the importance of the loading and unloading process in the purpose of a goods carriage.

2. It rejected the insurer’s argument that the worker wasn’t traveling in the goods carriage, stating that loading and unloading are integral to a goods carriage’s purpose.

3. The court noted that the Employees Compensation Act is a welfare legislation aimed at compensating employees for work-related injuries.

Verdict: The court concluded that loading and unloading workers, including Abdul Razaque, fall under the coverage of clause (c) of the first proviso to Section 147(1) of the Motor Vehicles Act. Finding no irregularity in the Commissioner’s order, the court dismissed the appeal, affirming the entitlement of loading and unloading workers to compensation under the Employees Compensation Act.

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