MCA imposes 4.5 Lakh penalty for not including statement on constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act, 2013 in Board report

Posted by & filed under POSH-ACT.

Sexual Harassment of Women at Workplace Act 2013

Ceeta Industries Limited, a company headquartered in Tumkur, Karnataka, has been penalized by the Ministry of Corporate Affairs (MCA) for violating Section 134(3)(q) of the Companies Act, 2013. The violation stems from the company’s failure to include a required statement regarding the constitution of the Internal Complaints Committee (ICC) under the Sexual Harassment of Women at Workplace Act, 2013, in their Board reports for the financial years ending on March 31, 2019, and March 31, 2020.

Key point:-

  • Violation Details: The company did not disclose its compliance with ICC provisions in their Board reports, which was a violation of Section 134(3) of the Companies Act.
  • Penalties Imposed: The penalties for this violation include a fine of three lakh rupees for the company and fifty thousand rupees each for its Managing Director, CFO (Key Managerial Personnel), and Company Secretary.
  • Adjudication Process: The violation was identified in July 2021, and the company underwent an adjudication process, including a physical hearing where they argued that the omission was unintentional.
  • Small Company Argument: The company claimed that, as it had fewer than ten employees in each establishment, it was not obligated to establish an ICC. However, this argument did not exempt them from the penalty.
  • Importance of Compliance: The article underscores the necessity of adhering to all statutory requirements, no matter how seemingly procedural they appear, to avoid financial penalties and legal actions.
  • Consequences of Non-Compliance: Failure to comply with the MCA’s order could result in further legal actions under Section 454(8) of the Companies Act, 2013.

This case serves as a reminder of the importance of adhering to legal requirements and maintaining regulatory compliance to avoid financial penalties and potential legal consequences.

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When Can Two Establishments Be Clubbed Together For EPF Act Coverage?

Posted by & filed under High Court Judgements-PF.

Supreme Court | Section 2(b) of EPF Act

A Division Bench of the Supreme Court recently determined the legal position pertaining to the clubbing of different institutes for the purpose of coverage under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act).

After referring to several decisions with respect to the subject matter, the Court concluded that there is a financial integrity between the two institutes and thus, they can be interconnected and can be clubbed for the purpose of coverage.

Important Judgement from Supreme court :-

When-Can-Two-Establishments-Be-Clubbed-Together-For-EPF-Act-Coverage-Supreme-Court-ExplainsDownload

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•Synopsis of the Judgment in Civil Appeal No. 4188 of 2013:

•The case involves an appeal challenging the applicability of the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF Act) to the appellant’s educational institutions.
•The appellant runs two institutions: the ‘Ideal Institute of Fine Arts’ and the ‘Mathosri Manikbai Kothari College of Visual Arts,’ both on the same campus.
•The issue is whether the EPF Act applies when both institutions share the same management and premises.
•The Enforcement Officer’s report determined that both institutions should be covered under the EPF Act due to their common management and having a total of 26 employees.
•The Commissioner issued an order for EPF contributions, which the appellant appealed. The Tribunal and the High Court upheld the order.
•The appellant argued that the institutions were independent and not interconnected.
•The court referred to legal precedents and noted that common management, functional integrity, and financial integration were essential factors for determining EPF Act coverage.
•Documents provided by the appellant, such as accreditation and financial records, supported the argument of interconnectedness.
•The court found that the appellant failed to provide enough evidence to disprove the common management and interconnection between the institutions.
•The appeal was dismissed, and the court upheld the previous orders for EPF Act coverage. No costs were awarded.
•In summary, the judgment confirms that both appellant’s educational institutions are subject to the EPF Act due to their shared management and interdependence, as established by the evidence and legal principles.

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Compliance Calendar October 2023

Posted by & filed under Compliance -Calendar.

Appended below is the Pan India Compliance calendar for October 2023, the employer is under obligation to contribute towards some of the above-mentioned compliances for the welfare of the employees. Each of these compliances is again governed by a set of rules and formulas. It is proven to be a deliberate attempt to violate the provisions of the law, there could be imprisonment of the employer. Please, comply with the same in time to avoid any future non-compliance so that hefty penalties and fines are not charged by the respective dept.

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Compliacne Calendar September 2023

Posted by & filed under Compliance -Calendar.

Appended below is the Pan India Compliance calendar for September 2023, the employer is under obligation to contribute towards some of the above-mentioned compliances for the welfare of the employees. Each of these compliances is again governed by a set of rules and formulas. It is proven to be a deliberate attempt to violate the provisions of the law, there could be imprisonment of the employer. Please, comply with the same in time to avoid any future non-compliance so that hefty penalties and fines are not charged by the respective dept.

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Public Holiday declared in New Delhi from 8th September to 10th September -2023

Posted by & filed under Delhi Shop & Establishment.

Micro Minorities: The Tribal Call for Protection to the G20 Summit

Delhi Chief Minister Arvind Kejriwal approves the proposal to declare a public holiday from 8 to 10 September in Delhi, given the G20 summit. All schools, and govt offices including MCD offices will be closed on these dates. All schools, offices of the city government and the Municipal Corporation of Delhi and private offices will now remain closed during the three days.

According to the proposal approved by the chief minister, all commercial and business establishments, including banks and financial institutions, located within the jurisdiction of the New Delhi police district will also remain closed from September 8 to 10.

On account of Public holiday all employees will be mark present and no cut in pay or Loss of pay no adjustment of leaves.

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ESIC notified implementation of the ESI Scheme in the areas falling under municipal limits of Surat Municipal Corporation in the state of Gujarat

Posted by & filed under Esic-Circulars.

A query was raised as to whether the areas/villages subsequently added to the municipal limits of Surat shall mutatis mutandis be treated as areas notified for the purpose of implementation of the ESI Act, 1948.

In this regard findings of Hon’ble High Court of Jammu & Kashmir and Ladakh in order dated August 27, 2021, against MA 362/2014 are relied upon. While deciding a similar case, Hon’ble High Court observed that “any area subsequently included within the municipal limits of the city would be deemed to have become subject to the provisions of the Act on the premise that the applicability of notification (notifying implementation of the ESI Scheme in a municipal area) would deemed to be coextensive and coterminous with the issuance of any subsequent notification by the local government, either including or excluding any area from the municipal limits of the city, as such, fresh/new notification would not be required to be issued in this regard by the Central Government under sub section (3) of Section 1 of the Act.

In light of the above, HQrs ESIC has clarified that no fresh notification is necessary in this regard. Thus, any area(s) falling within the municipal limits of Surat shall deemed to be treated as notified for the purpose of implementation of the ESI Scheme from the date such area(s) is declared as part of the municipal limits of Surat by the Competent Authority. This provision shall also apply to the areas included in the municipal limits of Surat in future.

Therefore, establishments/factories/institutions falling within the municipal limits of Surat and coverable under the provisions of the ESI Act shall immediately get themselves registered as per already defined procedure.

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