SUPREME COURT ON EPF CONTRIBUTIONS ON ALLOWANCES
It may be recollected that in a Review Petition by Surya Roshni Limited vs. Employees’ Provident Fund and Another, 2012 LLR 42, Division Bench of Madhya Pradesh High Court has held that Section 2(b) and 6 of the Employees’ Provident Funds & Miscellaneous Provisions Act define basic wages and HRA, overtime allowance, bonus, commission or any other similar allowance are not covered in the definition of basic wages but when special allowance, dearness allowance, conveyance allowance and other allowances are paid universally to all the employees, they would be treated as part and parcel of basic wages.
A special leave petition to appeal, as filed, came up for hearing on 13.7.2012, in which the following order was passed :
ITEM NO.MM-128 COURT NO.12 SECTION XV
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
I.A. NOS.4-5 in
Petition(s) for Special Leave to Appeal (Civil) No(s).8781-8782/2012
(From the judgment and order dated 24-3-2011 in WPC No.1891/2011 and dated 22-11-2011 in RP No.117/2011 of the High Court of M.P. at Gwalior)
SURYA ROSHNI LTD. Petitioner(s)
versus
EMP. PROVIDENT FUND & ANR. Respondent(s)
(FOR DIRECTIONS)
Date: 13-7-2012 These I.As were mentioned today
CORAM :
HON’BLE MR. JUSTICE K.S. RADHAKRISHNAN
HON’BLE MR. JUSTICE DIPAK MISRA
For Petitioner(s) : Mr. Rohit Arya, Sr. Adv., Mr. Gagan Gupta, Adv., Mr. Harvinder Singh, Adv., Mr. Sunil Singh Parihar, Adv., Mr. Nitin Gaur, Adv.
For Respondent(s) : Ms. Liz Mathew
Upon being mentioned the Court made the following
ORDER
Considering the facts and circumstances of the case we are inclined to direct the petitioner to deposit 60% of the amount demanded, after getting credit to the amount already paid, within a period of two weeks.
On the above facts, we are inclined to grant stay of the High Court judgment.
The I.As are, accordingly, disposed of.
(NARENDRA PRASAD) (RENUKA SADANA)
COURT MASTER COURT MASTER
Some of the appeals, as decided byThe EPF Appellate Tribunal,are summarized and published under following captions :
·  Contributions, as recovered without identification of employees, is liable to be refunded by EPFO
·  Levy of damages not proper when there was no conscious failure of employer
·  Apprentices not to be covered as employees
·  Workers to be identified before the assessment is made
·  EPF Tribunal can allow installment for payable dues for employer
·  Damages for delayed payment of contributions to be quashed
As usual, amongst others, the followinglatest judgments(as decided in 2012) are being published in August 2012 issue of Labour Law Reporter. The salient features are given below :
Dismissal for taking bribe not harsh.Jhar. HC 814
Demand of ESI contributions not tenable in absence of identification of employees and their wages.Pat. HC 842
No back-wages when reinstatement is on technical reason.Del. HC 791
Relationship of employer and employee, when disputed it is for the workman to establish by evidence.All. HC 878
Compensation rightly awarded when the employee was murdered by striking workers.Chhatt. HC 886
Validity of enquiry shall be decided as preliminary issue. Mad. HC 866
An accountant, assigned for realization of amounts from other companies, is a ‘workman’.Jhar. HC 813
Territorial jurisdiction of Insurance Court is restricted to where insured workman was working. Guj. HC 807
An enquiry will be vitiated when delinquent is denied reasonable opportunity.Guj. HC 801
For proving that workman was engaged through contractor, there must be a valid agreement. Mad. HC 824
When procedure prescribed for termination not followed, workman would be reinstated.All. HC 878
Higher Court to quash an Award when the Tribunal committed any error of law.Mad. HC 872
After 30 days of publication of an Award, the Labour Court becomes functus officio.All. HC 798
240 days continuous service insignificant when the termination is for misconduct.P&H HC 830
For determining ‘workman’, it is immaterial whether he is full-time, part-time, casual or contractual.Mad. HC 820
Reinstatement appropriate when enquiry is vitiated.Karn. HC 854
Tribunal can’t re-appreciate findings in enquiry. Del. HC 785
Minimum wages for shops & establishments would also apply to unscheduled employments.Del. HC 789
Awarding of back-wages with reinstatement not justified, when charges are serious and proved.Uttr. HC 846
Simultaneous payment of closure compensation is not a condition precedent.Del. HC 792
Non-supply of report of Enforcement Officer will vitiate order under section 7A of Provident Fund Act.Cal. HC 835
An objection, not raised before the Labour Court, cannot be taken in High Court.Mad. HC 866