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94482EPF amends.

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  • anil narayan
    Feb 28, 2014
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      PROVIDENT FUND COVERAGE AT RS.15,000 AND MINIMUM MONTHLY PENSION RS.1,000 TO START SOON

      The Central Board of Trustees (CBT), the apex decision making body of Employees' Provident Fund Organisation on 5th February, 2014 has decided to amend Employees' Provident Fund Scheme to raise the monthly wage ceiling to Rs.15,000 from Rs.6,500 for coverage of an employee.

      According to EPFO, the Finance Ministry has already approved the Labour Ministry's proposals for entitlement of minimum monthly pension of Rs.1,000 and enhancing wage ceiling for coverage to Rs.15,000 per month.


      PROVIDENT FUND UPDATE  WHAT THEY DON'T TEACH AT B-SCHOOLS AND LAW COLLEGES

      The Employees Provident Fund Organization (EPFO) is inflicted with inefficiency and opacity leading to the unmitigated hardships to all stakeholders despite the fact that the administrative charges are paid by the employers alongwith the contributions. In view of the glaring lacunas in the Act and inefficient management of the Organization judicial interpretations, come to the rescue. We summarized the judicial interpretations of 2013, which are produced below.

      HIGHLIGHTS OF ORDERS OF EPF APPELLATE TRIBUNAL 
      AS DIGESTED IN 2014

      ·         Damages waived in the absence of proper enquriy and identification of beneficiaries

      ·         Loss making company permitted to deposit outstanding in instalments

      ·         20% towards labour charges in the cost of construction - to be set aside for want of identification of beneficiaries

      ·         Determination of dues without making physical verification and identification of beneficiaries - to be quashed

      ·         Damages untenable if default in deposit is not willful

      ·         Coverage of establishment employing less than 20 persons set aside

      ·         Arrears of wages - not to attract interest/damages

      ·         Trainees under model standing orders are not employees to be covered

      ·         No interest or damages when default is not wilful

      ·         Excluded employees not entitled to be member of pension scheme

      ·         Default in deposit when not wilful, penal damages unjustified

      ·         Damages for late deposit sustained but instalments allowed

      ·         Levy of damages - reduced to 5% when default not wilful

      ·         5% damages appropriate when delay in deposit of dues is not wilful

      ·         Coverage of a trust needs fresh consideration

      ·         Levy of damages without considering the reasons for delayed deposit to be re-examined

      ·         International workers when availing benefit of PF and pension - not to be covered in India

      HIGHLIGHTS OF REPORTED JUDGMENTS OF HIGH COURTS 
      AND SUPREME COURT IN 2014 ON EMPLOYEES’ PROVIDENT FUND

      ·         Demanding provident fund contributions without identification of beneficiaries is not proper. Bom. HC (LLR p.25)

      ·         Depositing of provident fund contributions in the absence of functioning of the establishment would not arise. P&H HC (LLR p.192)

      ·         Appeal against levy of interest by RPFC not tenable before EPF Appellate Tribunal. Supreme Court (LLR p.89)

      ·         Determination of provident fund dues without hearing the employer to be quashed.Bom. HC (LLR p.25)

      ·         For coverage of establishment under Provident Fund, there should be 20 or more persons for its regular business. P&H HC(LLR p.192)

      ·         ‘Basic wages' comprise components which are universally, necessarily and ordinarily paid to all employees. Supreme Court(LLR p.113)

      ·         EPF Authority, showing high handedness on recovery of money, is liable to pay interest himself @12% on money as recovered. Guj. HC (LLR p.169)

      ·         Pre-deposit of the determined money is a condition precedent for filing appeal before EPF Tribunal. Mad. HC (LLR p.204)

      ·         Provident fund dues to the retiree-employee are payable at the place where he/she resides. Ker. HC (LLR p.209)


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      Best Regards
      ANIL ASSOCIATES
      Adv. ANIL NARAYAN 
      +91  9995878720  (M)

      Adv. JYOTHISH KUMAR

      Mr. VINOD.K  09946061480

      +91 471 2553867 (O)
      (HO) NLRA-52, Neerazhi Lane, Ulloor, Medical College P.O, Trivandrum -11
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