10:47 PM
Amresh
PF attract for overtime wages?
QUESTION---"Whether this over time wages will attract PF Contribution for both employee and employer"
ANSWER --OT
is not wages under EPF &MP Act,1952 ,so pf will not be deducted on
OT.ESI contribution is payable on overtime wages but PF contribution is
not.
Late submission of PF Return
ANSWER-- Section 14 of the pf Act deals with penalties and 32-A deals with damages.
where
an employer 1. makes default in the payment of any contribution to the
provident fund or pension fund or insurance fund or, 2. makes default in
the transfer of accumulations required to be transferred by him or,3.
makes default in the payment of any charges payable under the act or
scheme may be recovered from the employer b;y way of penalty,damages at
the following rates.
1.
less than 2 months- 17% p.a 2. 2 months and above but less than 4
months- 22% p.a. 3. 4 months and above but less than 6 months- 27%
p.a.4. 6 months and above -37% ( para 32A of EPF scheme)
OFFENCES AND PENALTIES are specified in para 14 of the EPF Act.
in
that if an employer fails to pay contribution, submit returnsetc.,he
shall be punishable with imprisonment which may extend to one year or
with fine which may extend to rs.4000/ under the provident fund scheme
and the insurance scheme rs. 5000/ under pension scheme or with both 1.
he deducts or attempts to deduct from the wages or other remuneration of
the member the whole or any part of the employers contribution, or he
fails or refuses to submit any return, statement or other document
required by this scheme or submits a false return statement or other
document or makes a false declaration, or he obstructs any inspector or
other official appointed under this act or this scheme in discharge of
this duties or fails to produce any record for inspection by such
inspector or other official or he is guilty of contravention of or
non-compliance with any other requirement of thesis scheme. ( para 76 of
EPF,para 42 of EPS, para 29 of edli scheme)
hence to sumup the employer is both liable for damages and penalties if he contravenes the law.
PF deduction on Leave Encashment
ANSWER------No PF is not applicable on Leave Encashment.
Please refer to CASE NO.: Appeal (civil) 1832 of 2004
Also PF Authority has issue a circular on 05/05/2008 which also indicate that PF is not liable on Leave Encashment.
PETITIONER:
Manipal Academy of Higher Education
RESPONDENT:
Provident Fund Commissioner
DATE OF JUDGMENT: 12/03/2008
Contract Labour
ANSWER---------As
per Section 2 (f) of the Employees Provident Funds and Misc. Provisions
Act, an employee is defiend as any person employed in any kind of work,
and who gets its wages direcly or indirectly from the employer, and
includes any person employed by or through a Contractor, in or in
connection with the work of the establishment.
Therefore
taking the literal meaning of the section, the Principal employer can
also be held responsible for payment of PF contribution.
But there are also certain safeguards for the Principal Employer.
The
liability only arises, when the Contractor, defaults in making the PF
contribution. In such a case, it would be always advisable to take a separate PF Code for the Contractors, and deposit the Contribution in
there. All amounts so deposited can be recovered from the contractor, as
per the provisions of Section 8 of the Act.
I
would secondly suggest that you have a inbuilt clause in the Contractor
Agreement, which directs the Contractor to comply with the provisions
of all Labour Laws, including minimum wages act, and further an
indemnity clause, wherein the contractor should indemnify the Company,
against all claims and damages, arising out of non compliance of any
labour Laws, and should reimburse all costs and expenses arising out of
the same..
Posted in: 
0 comments:
Post a Comment