Posted by & filed under Grautity.

The Karnataka Compulsory Gratuity Insurance Rules, 2024, issued by the Government of Karnataka, outline regulations regarding the payment of gratuity to eligible employees. Here’s a summary of the key provisions:

1. Title and Commencement

  • These rules are named the Karnataka Compulsory Gratuity Insurance Rules, 2024.
  • They come into force from the date of publication in the Official Gazette.

2. Definitions

  • Defines various terms such as “Act” (Payment of Gratuity Act, 1972), “employer,” “form,” “nomination,” and “section.”
  • Refers to definitions in related acts like the Insurance Act, 1938, Life Insurance Corporation Act, 1956, etc.

3. Obtaining Insurance for Payment of Gratuity

  • New employers must obtain a valid insurance policy within 30 days from the rules’ applicability.
  • Existing employers must obtain insurance within 60 days from the commencement of the rules.
  • Employers must make timely premium payments and renew policies, informing the Controlling Authority promptly.

4. Recovery of the Amount of Gratuity

  • The Controlling Authority has the power to recover gratuity amounts from the insurance company in case of disputes or as determined by the employer.

5. Registration of the Establishment

  • Employers must register their establishments with the Controlling Authority within 30 days of obtaining insurance.
  • Details of insured employees must be submitted, and updates provided when there are changes.

6. Continuation of Approved Gratuity Fund

  • Employers with an existing approved gratuity fund or those employing 500 or more persons may opt to continue or adopt such arrangements by submitting an application.

7. Incorporation of Gratuity Trust

  • Employers with approved gratuity funds must register the Gratuity Trust with representatives and comply with relevant laws.
  • The trust can be managed privately, by the insurance company, or jointly.
  • The trust must adhere to certain standards and procedures for claiming and releasing gratuity amounts.

8. Compliance with the Provisions of the Act

  • Employers must take measures to fulfill their obligations under the Payment of Gratuity Act, 1972.

The notification is signed by Suma. S, Under Secretary to Government, Labour Department, on behalf of the Governor of Karnataka, and is dated January 10, 2024.

Posted by & filed under Minimum Wages-WestBengal.

Minimum Wages in West Bengal

The circular from the Office of the Labour Commissioner, Government of West Bengal, outlines the minimum rates of wages for employees in the state for the period from January 1, 2024, to June 30, 2024. Here are the key points from the circular:

  1. Scheduled Employments: The minimum rates of wages apply to 30 Scheduled Employments in the state, and the rates have been updated based on Fixation/Revision notifications for each scheduled employment.
  2. Implementing Areas:
    • Zone A: Includes areas under Municipal Corporations, Municipalities, Notified Areas, Development Authorities, and Thermal Power Plant areas, including Township Areas.
    • Zone B: Encompasses the rest of West Bengal.
  3. Calculation of Rates:
    • To determine the daily rate, the monthly rate should be divided by 26 (rounded off to the nearest rupee).
    • To find the weekly rate, the daily rate should be multiplied by 6.
  4. Normal Working Day: A normal working day consists of eight hours of actual work with a minimum half-hour recess, totaling 48 hours of actual work in a week.
  5. Weekly Rest: One day in any seven-day period, as per local convenience, is designated as the day of weekly rest. The minimum rates of wages include wages for the weekly day of rest. Payment for work done on the weekly rest day and beyond normal working hours is at double the ordinary rates.
  6. Protection of Higher Rates: If the existing rates of wages for any employee, based on a contractor, agreement, or other means, are higher than the rates specified in the circular, the higher rates will be protected.
  7. Applicability to Contractors: The minimum rates of wages are applicable to employees employed by contractors.
  8. Rates for Disabled Persons: The minimum rates of wages for disabled persons are the same as those payable to workers of the appropriate category.
  9. Gender Equality: Men and women employees are entitled to the same rates of wages for the same work or work of similar nature.
  10. Enforceability: The minimum rates of wages, along with variable dearness allowance (if any), together constitute the minimum rates of wages enforceable under the Minimum Wages Act, 1948 (11 of 1948).

The circular has been issued with the approval of the Labour Commissioner, West Bengal, as of December 12, 2023.

Posted by & filed under Compliance -Calendar.

As we bid farewell to the past year and welcome the promises of the new one, the Indian business landscape gears up for another journey through the compliance maze. The start of 2024 brings with it a fresh perspective and a renewed commitment to adhere to the ever-evolving regulatory requirements. In this blog, we’ll navigate through the Indian compliance calendar for January 2024, ensuring businesses are well-prepared to embrace the challenges and opportunities that lie ahead.

Welcoming the New Year:

Before delving into the specifics of the compliance calendar, let’s take a moment to appreciate the achievements and lessons of the past year. As we step into 2024, it’s essential to approach the compliance landscape with a positive mindset and a commitment to continuous improvement. A new year signifies new opportunities for growth, innovation, and strengthening our business foundations.

January 2024 Compliance Calendar:

Posted by & filed under Minimum Wages -Assam.

Class of Employment

Wage Per Day

Wages Per Month

Previous VDA Cumulated

New VDA Per Month

Total Per Month

Total Per Day

Unskilled Workers

₹ 240.00

₹ 7200.00

₹ 2468.74

₹ 131.76

₹ 9800.50

₹ 326.68

Semi-Skilled / Unskilled Supervisory

₹ 280.00

₹ 8400.00

₹ 2837.38

₹ 153.72

₹ 11391.10

₹ 379.70

Skilled Workers / Clerical Workers

₹ 350.00

₹ 10500.00

₹ 3547.20

₹ 192.15

₹ 14239.35

₹ 474.65

Highly Skilled Workers

₹ 450.00

₹ 13500.00

₹ 4560.00

₹ 247.05

₹ 18307.05

₹ 610.24

Posted by & filed under Esic-Circulars.

ESIC Aadhar Seeding Application due to e-KYC changes by UIDAI. The letter provides instructions and updates regarding the process of seeding Aadhar details for insurance persons and their family members. Here’s a summary of the key points in the letter:

  1. Background: The letter refers to previous instructions on Aadhar seeding issued on 25.05.2023 and 31.10.2023.
  2. UIDAI e-KYC Update: UIDAI has updated its e-KYC response, specifically regarding the sharing of the date of birth. If the date of birth in UIDAI is recorded as ‘declared or approximate,’ only the year of birth was being shared on the ESIC Aadhaar Seeding application.
  3. ESIC Portal Update: The ESIC Portal has been updated to allow users to select the date and month (Date/MM) during the Aadhaar seeding process, based on available documentary evidence. When the declared date of birth matches with the details in ESIC records, Aadhar will be seeded. In case of a mismatch, an update IP details request will be generated for approval.
  4. Procedure for Cases with Only Year Visible: In cases where only the year is visible in the date of birth column after seeding Aadhaar details, the person handling Aadhaar seeding will enter the date and month based on Aadhar Card or other documentary evidence. The Aadhar number will be seeded accordingly. Such cases will be marked distinctly on the profile of the insurance person as declared Date of Birth, subject to verification when necessary.
  5. Deleted Blank Cases: All blank cases of Aadhaar mismatch requests from the last 15 days have been deleted from the backend. Field offices are instructed to approach the individuals again to seed their Aadhar numbers in the ESIC portal.
  6. Help Files: The letter mentions that help files containing screenshots of the updated portal are attached for guidance.
  7. Compliance Request: Field offices are requested to ensure strict compliance with these guidelines and expedite the Aadhaar Seeding work.

 If you have any specific questions or need further clarification on any part of the letter, feel free to ask.

Posted by & filed under Provident Fund - (Notification -Circulars).

EPFO Archive » Central Government Staff Rules, Circulars and Orders - Govt  Staff

Explore the intricacies of EPFO inspections with our detailed breakdown of Circular CAIU/056/V-III/2023/2291. Gain insights into the latest guidelines, FAQs, and essential procedures for seamless compliance.”


Detailed explanation and some specific guidelines for employers, as per the FAQ mentioned in the circular is presented in tabular format:

FAQ Number

Question

Answer and Explanation

Employer’s Action/Consideration

1

Sequence of Periodic Desk Review (PDR)

PDR is conducted in the sequence of oldest to newest registration code establishments. Physical inspection may be assigned in certain cases.

Action: Employers should be prepared for potential PDR and cooperate if their establishment is selected for physical inspection. Ensure that records are in order.

2

Targets for PDR

Field offices must conduct desk reviews of all establishments at least once a year. Specific monthly targets are set.

Action: Employers should be aware of the annual PDR and cooperate with EPFO officials during the process.

3

Nudging Process

Nudging involves reminders to establishments for compliance. Centralized nudging is done for specific cases.

Action: Employers should respond promptly to nudging communications and take corrective actions if discrepancies are noted during PDR.

4

Content of Nudging Communications

Nudging communications highlight observations/discrepancies noted during PDR.

Action: Employers should carefully review nudging communications, understand observations, and take necessary corrective actions.

5

Physical Letters during Nudging

Physical letters sent if email/SMS is undelivered. Letters should not be of the nature of Show Cause Notices.

Action: Employers must ensure accurate contact details in EPFO records to receive electronic communications. Address any concerns raised in physical letters promptly.

6

Handling Closed Establishments

Closed establishments marked “Closed” in Unified Portal after verification of closure proofs. Various steps outlined for closure verification.

Action: If an establishment closes, the employer should provide proof of closure promptly. Cooperate with the closure verification process.

7

Associated Activities during PDR

Mandatory tasks during PDR include data cleaning, updating details, and correction of establishment information.

Action: Employers should ensure accurate and updated information in EPFO records during PDR.

8

Inspections Allocation

Inspections allocated randomly to available Enforcement Officers.

Action: Cooperate with Enforcement Officers during inspections. Ensure all necessary documentation is readily available.

19

PDR in ECR Category

PDR of establishments with assigned physical inspection on SSP to be ensured on priority before the start date of inspection.

Action: If selected for physical inspection, ensure PDR is completed promptly. Cooperate with the Enforcement Officer.

20

Coverage of Establishments not Registered

Guidelines for establishments coverable under the Act but not registered. Initiate contact for registration.

Action: If not registered despite being coverable, cooperate with EPFO officials, and consider registration through Shram Suvidha Portal.

21

Regional Head Role on SSP

Regional Head’s role in assigning inspectors on SSP.

Action: Employers should be aware of the SSP process and cooperate with assigned inspectors during inspections.

Note: The above suggestion is based on our expertise it may vary, and it’s crucial for employers seek legal advice if needed for compliance with EPFO regulations.

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.

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.

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.

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