SEMINAR ON CA Vivek Agarwal FCA, DISA (ICAI), B.Com cavivekslg@gmail.com +91 9832373066 www.facebook.com/trpvivek @trpvivek SEMINAR ON 24th July 2017 ICAI, EIRC, Kolkata

Structure of Legislations : The legislations can be categorized as follows:     Labour laws enacted by the Central Government, where the Central Government has the sole responsibility for enforcement. Labour laws enacted by Central Government and enforced both by Central and State Governments. Labour laws enacted by Central Government and enforced by the State Governments. Labour laws enacted and enforced by the various State Governments which apply to respective States.

Labour laws enacted by the Central Government, where the Central Government has the sole responsibility for enforcement  The Employees’ State Insurance Act, 1948*  The Employees’ Provident Fund and Miscellaneous Provisions Act,1952  The Dock Workers (Safety, Health and Welfare) Act, 1986  The Mines Act, 1952  The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare (Cess) Act, 1976 The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labor Welfare Fund Act, 1976  The Mica Mines Labour Welfare Fund Act, 1946  The Beedi Workers Welfare Cess Act, 1976  The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972  The Cine Workers Welfare (Cess) Act, 1981  The Beedi Workers Welfare Fund Act, 1976  The Cine Workers Welfare Fund Act, 1981

Labour laws enacted by Central Government and enforced both by Central and State Governments  The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996. The Child Labour (Prohibition and Regulation) Act, 1986.  The Contract Labour (Regulation and Abolition) Act, 1970.  The Equal Remuneration Act, 1976.  The Industrial Disputes Act, 1947.  The Industrial Employment (Standing Orders) Act, 1946.  The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.  The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988  The Maternity Benefit Act, 1961  The Minimum Wages Act, 1948  The Payment of Bonus Act, 1965  The Payment of Gratuity Act, 1972     The Payment of Wages Act, 1936 The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981  The Building and Other Construction Workers Cess Act, 1996  The Apprentices Act, 1961  Unorganized Workers Social Security Act, 2008  Working Journalists (Fixation of Rates of Wages Act, 1958  Merchant Shipping Act, 1958  Sales Promotion Employees Act, 1976  Dangerous Machines (Regulation) Act, 1983 Dock Workers (Regulation of Employment) Act, 1948 Dock Workers (Regulation of Employment) (Inapplicability to Major Ports) Act, 1997 Private Security Agencies (Regulation) Act, 2005

Labour laws enacted by Central Government and enforced by the State Governments  The Factories Act, 1948 The Employers’ Liability Act, 1938  The Motor Transport Workers Act, 1961  The Personal Injuries (Compensation Insurance) Act, 1963  The Personal Injuries (Emergency Provisions) Act, 1962  The Plantation Labour Act, 1951  The Sales Promotion Employees (Conditions of Service) Act, 1976  The Trade Unions Act, 1926  The Weekly Holidays Act, 1942 The Working Journalists and Other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 The Workmen’s Compensation Act, 1923  The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959  The Children (Pledging of Labour) Act 1938  The Bonded Labour System (Abolition) Act, 1976  The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

Classification of LABOUR LAWS in India   Laws related to Industrial Relations such as: Trade Unions Act, 1926, Industrial Employment Standing Order Act, 1946, Industrial Disputes Act, 1947. II. Laws related to Wages such as: Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965., Working Journalists (Fixation of Rates of Wages Act, 1958 (Majhithia Wage Board) III. Laws related to Working Hours, Conditions of Service and Employment such as:   Factories Act, 1948., Plantation Labour Act, 1951., Mines Act, 1952., Contract Labour (Regulation & Abolition) Act, 1970,  Sales Promotion Employees Act, 1976, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996, Building and Other Construction Workers Welfare Cess Act, 1996, Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981,, Industrial Employment (Standing Orders) Act, 1946, Mines and Mineral (Development and Regulation Act, 1957 etc.

Classification of LABOUR LAWS in India……(Contd..)   Laws related to Equality and Empowerment of Women such as:   Maternity Benefit Act, 1961, Equal Remuneration Act, 1976. Laws related to Deprived and Disadvantaged Sections of the Society such as:   Bonded Labour System (Abolition) Act, 1976, Child Labour (Prohibition & Regulation) Act 1986,   Laws related to Social Security such as:   Employees’ Compensation Act, 1923., Employees’ State Insurance Act, 1948., Employees’ Provident Fund & Miscellaneous Provisions Act, 1952., Payment of Gratuity Act, 1972… and so on

What will we cover today ? Employees’ Provident Fund & Misc. Provisions Act’ 1952 Employees’ State Insurance Act’ 1948 Any other topic on labour laws on request

Employees' Provident Fund & Misc. Provisions Act’ , 1952

Employees' Provident Fund Scheme, 1952 Applicability Every establishment where 20 or more persons are employed. Employee Eligibility Any person who is employed directly or employed through contractor Employees contribution up to a Salary (Basic + DA + Retaining Allowance + Cash Value of Food Concession) less than or equal to Rs.15000/- Apprentices are not to be treated as “employees” under the Act Maximum Statutory limit for Contribution under EPF and MP Act’ 1952 is Rs 15000/- w.e.f. 01.09.2014

Employees' Provident Fund Scheme, 1952 Rate of Contribution Employee: 12% on Basic + DA + CVFA Employer: 13.15% on Basic + DA + CVFA [(PF-3.67% + 0.65%) + (EDLI-0.5%) + (Pension-8.33%)] * 0.65% Is PF Administrative charges payable in A/c 2 (subject to minimum of Rs 75/- per month for non-functional establishment and Rs 500 per month for other establishments, 0.01 % is ELDI Adm. Charges payable in A/c 22 has been omitted w.e.f. 01.04.2017 Monthly Remittance of Contribution & Return of employees Remittance of Contribution (PF Challan), for the previous month, on or before 15th of following month ECR copy with details of the employees deployed

PF Deductions for employees: Employees' Provident Fund Scheme, 1952 PF Deductions for employees: PF deduction is mandatory for all the employees whose Basic + DA is less than or equal to 15000. Employees with Basic + DA more than 15000 have an option to opt out of PF scheme. Deduction will be 12% of Basic + DA for an employee. If the Basic + DA is more than 15000, employer have an option to pay 12% of actual amount or Rs. 1800 (12% of 15000).

PF Deductions for employees: Employees' Provident Fund Scheme, 1952 PF Deductions for employees: All the organizations having an employee strength of 20 or more than 20 are eligible for PF deductions. Employer has to contribute 13.15% towards PF deduction. It is divided as: - Pension Fund : 8.33% - Provident Fund : 3.67% - Employee Deposit Linked Insurance : 0.5% - Administrative Charges for PF Scheme: 0.65% (Subject to conditions as discussed) -

Tax Benefit and returns: Employees' Provident Fund Scheme, 1952 Tax Benefit and returns: Tax benefit: Sec 80 (C): Tax exemption on the investment up to 1.50 lac. Sec 10 10 (C): Avail income tax exemption on the withdrawn PF amount. However, withdrawal of PF accumulations where duration of employment is less than 5 years has now been made subject to deduction of tax at source. Returns: The current rate of interest on PF is 8.65% (For FY 2016-2017)

Forms to be filled by the employees: Employees' Provident Fund Scheme, 1952 Forms to be filled by the employees: S.No Form no. Description 1 Form 2 Nomination form at the time of joining an organization. (Now through UAN Employees portal) 2 Form 19 Now merged in Consolidated claim Form. 3 Form 10 C 4 Form 10 D Employee completed 10 year’s of service/attained 58 year’s age. The amount will be paid as pension. 5 Form 20 Claim of PF amount for deceased member my Nominee 6 Form 13 For transfer of PF a/c. (NOW ONLINE) 7 Form 31 For withdrawing advance from PF account. (Consolidated Form)

Forms to be filled by the employees: Employees' Provident Fund Scheme, 1952 Forms to be filled by the employees: S.No Form No. Due Date Frequency Description 1 Form 5 25th of every month Within 15 days Employee joining an organization. (Now only through Online ECR) 2 Form 10 Monthly Resigned Employee details (Now only through Online ECR-Exit Return) 3 Form 12 A contains consolidated details of that particular month- new joinees, left employees and employer-employee PF contributions. (Now only through Online ECR) 4 Form 3A 30th April Yearly Employee contribution details (Now only through Online ECR) 5 Form 6A 30th April Employees consolidated contribution list. (Now only through Online ECR) 6 Form 5A Inception Once When an organization registers at EPF, India. Online through ECR portal

Employees' Provident Fund Scheme, 1952

Employees' Provident Fund Scheme, 1952 How to file PF? Login to https://unifiedportal-emp.epfindia.gov.in/epfo/ Upload the ECR file On successful upload of the ECR file, a Summary page of uploaded ECR file will appear.  Fill in the details regarding EDLI and EPF/EDLI administrative/inspection charges. On click of submit button, PDF File will appear for approval and finalisation. Once you approve the PDF file, a Challan will be generated with a TRRN (Temporary Return Reference Number) along with an acknowledgement slip for the uploaded ECR file. Online payment of EPF dues to be made online through the link provided on the portal itself.

Employees' Provident Fund Scheme, 1952

Latest Updates:- Withdrawal of exemption for NGOs (1.4.2015) EPFO Mobile Application Construction Workers’ (New regime - UAN) Settlement of Claims (Without employer’s Attestation) Unified Employer’s Portal Unified Member’s Portal Contractor Mapping

Employee’s State Insurance Act’ 1948

ESI SCHEME Employees' State Insurance Act’ 1948 ESI Scheme for India is an integrated social security scheme tailored to provide Social Production to workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or Occupational hazard

Employees' State Insurance Act’ 1948 The ESI Act 1948 applies to Non – seasonal Factories using power in and Employing ten (10) or More persons Non – seasonal and non- power using factories and establishments employing twenty(20) or more persons (However, vide a notification shops and establishments employing 10 or more employees are coverable under the Act w.e.f. 10.2.2011) Educational institutions and private nursing homes are coverable under the ACT w.e.f. 26.8.2006 (In West Bengal). Employees of the Factories and Establishments in receipt of wages not exceeding Rs.15000 /- Per month are covered under this Act. [SINCE COVERAGE UNDER THE ESI ACT IS BY AREA BASED NOTIFICATIONS, THE AREA IN WHICH AN INSTITUTION IS LOCATED NEEDS TO BE NOTIFED FOR THE PURPOSE OF COVERAGE UNDER THE ACT)

Employees' State Insurance Act’ 1948 The ESI Act 1948 applies to …… A Chartered Accountant’s office/firm too. Vide amendment in West Bengal Shops and Establishment by Amendment Act of 1981, such offices in included within the definition of Commercial Establishment. However, apprentices are not deemed to be employees under the Act.

WAGES…..Defination of…. Employees' State Insurance Act’ 1948 Wages means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorised leave, lock out, strike which is not illegal or layoff and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include :- a). Any contribution paid by the employer to any pension fund or Provident fund, or under this act; b). Any traveling allowance or the value of any traveling concession; c). Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment ; or d). Any gratuity payable on discharge.

CONTRIBUTIONS Employees' State Insurance Act’ 1948 The Scheme is primarily funded by contribution raised from Insured Employees and their employers Payable such as 1. Employees’ Contribution – 1.75% of the Wages 2. Employers’ Contribution – 4.75% of the Wages TOTAL – 6.50% of the Wages Employees in receipt of an average daily wage of Rs. 100/- or Less, are exempted from Payment of their share of contribution (w.e.f. 01.07.2011) but are entitled to all social security benefits under the Scheme. (Note: Reduced rate of Contribution in newly implemented areas for 24 months from the date of implementation [GSR 959(E)] – 3% + 1%

Employers Contributions Employees' State Insurance Act’ 1948 STATEMENT OF ESI CONTRIBUTIONS FOR THE MONTH OF …………………. Sl Name of Employee Insurance Number No of Days Rated Rate of pay Total Average Pay ESI Deduction Employers Contributions Total Contributions   1 Vijay 4102255441 26 Daily 150 3900 69 186 255 2 Ram 4102255442 25 3750 66 179 245 3 Prabhu 4102255443 24 90 2160 103 4 Shyam 4102255444 230 5980 105 285 390 5 Kishore 4102255445 225 5850 278 381 6 Ashok 4102255446 7 Nirmal 4102255447 18 Monthly 4000 2769 153.83 49 132 181 8 Vimal 4102255448 16 3000 1846 115.37 33 88 121 9 Kumar 4102255449 12 2500 1154 96.16 55 10 Ashim 4102255450 2400 923 92.3 44 11 Jayanto 4102255451 6000 5538 230.75 97 264 361 39720 625 1892 2517

CONTRIBUTIONS AND BENEFIT PERIOD Employees' State Insurance Act’ 1948 CONTRIBUTIONS AND BENEFIT PERIOD Employees covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six month time span from 1st April to 30th September and 1st October to 31st March. Cash benefits under the scheme are generally liked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two type of periods are elucidated below. Contribution Period Benefit Period 1st April to 30th September 1st January to 30th June of the following year 1st October to 31st March 1st July to 31st Dec.

Employees' State Insurance Act’ 1948 The Compliances under the ESI Act have been made online mandatorily over the past few years and all employers are required to file salary details online. All Employers have been issued unique User-Ids and Passwords to logging on the ESIC portal. For New Registrations, a temporary user id can be generated by the Establishment itself, which on allotment of code number is suspended and a new Id and Password is issued.

EMPLOYEE REGISTRATION

FILING OF MONTHLY SALARY DATA

IP Name ( Only alphabets and space ) IP Number (10 Digits) IP Name ( Only alphabets and space ) No of Days for which wages paid/payable during the month Total Monthly Wages Reason Code for Zero workings days(numeric only; provide 0 for all other reasons- Click on the link for reference) Last Working Day ( Format DD/MM/YYYY or DD-MM-YYYY)  

Reason Code Note Without Reason Leave last working day as blank On Leave 1 Left Service 2 Please provide last working day (dd/mm/yyyy). IP will not appear from next wage period Retired 3 Out of Coverage 4 Please provide last working day (dd/mm/yyyy). IP will not appear from next contribution period. This option is valid only if Wage Period is April/October. In case any other month then IP will continue to appear in the list Expired 5 Non Implemented area 6 Please provide last working day (dd/mm/yyyy). Compliance by Immediate Employer 7 Suspension of work 8 Strike/Lockout 9 Retrenchment 10 No Work 11 Doesnt Belong To This Employer 12

GENERATION OF CHALLAN

This challan is no longer generated. Online payment mandatory Link for online payment provided on homepage

Some of the other Laws to be complied with : West Bengal Shops and Establishment Act’ 1963 Contract Labour (R&A) Act’ 1970 Building and other Construction Workers Welfare Cess Act’ 1996 Payment of Wages Act’ 1936 Minimum Wages Act’ 1948 Payment of Gratuity Act’ 1972 Industrial Disputes Act’ 1947 Industrial Employment (Standing Orders) Act’ 1946

Time for….

CA Vivek Agarwal FCA, DISA (ICAI), B.Com cavivekslg@gmail.com +91 9832373066 www.facebook.com/trpvivek @trpvivek