Regulatory updates

1. .“Online Dashboard” notified by Haryana Govt. on 15 October 2024:

   Govt. of Haryana notified “the Online dashboard” with an objective of enhancing ease of doing business. The ‘online dashboard’ will provide services like licensing of contractors and registration of principal employers under the Contract Labour (Regulation & Abolition) Act, 1970; provide services under shops and establishment Act, BOCWA, Inter-State migrants Act and the Factories Act.

   Utilisation of reserves by exempted trusts: EPFO Circular dt, 7 October 2024.

   2.EPFO vide its circular (#E.III/10(122)/2024/Circular/Exemption/5435) issues directions to the exempted trusts on utlisation of reserves and surpluses. As per the circular there are instances where exempted trusted sought permission from EPFO in distributing the balance lying in the trust reserves and surpluses to the existing members at a much higher rate than the interest rate declared by the EPFO. Such requests are made during the surrender of exempted trusts.

   According the circular:

   a) Inflated surplus is an indicative of non-distribution of earnings of previous years amongst the incumbent beneficiaries which should have been distributed as higher interest for beneficiaries.

   b) Interest shall be credit on monthly running balance. No interest is allowed to be credited for broken periods.

   c) Rate of interest allowed to beneficiaries of exempted trust should be commensurate with the earnings of the fund.

   d) Overdrawal of reserves and surpluses is not permitted at any point of time.

   In this regard EPFO made it clear that accumulations in the reserves came up in course of time by utilising the accretions from several past and present beneficiaries and allowing them to distribute among the existing beneficiaries would amount to unjust enrichment of few at the expense of other, hence, it has not acceded to the request of the exempted establishments. It is imperative that the total accumulations of the trust including the balance of undistributed interest on investment be transferred to CBT, EPFO upon cancellation or surrender of exemption.

2. ESI Circular dt. November 12, 2024

   In a communication dt. 12 Nov 2024 ESI has reiterated its old instructions with regard to time for uploading inspection documents into Shram Suvidha Portal. As per the circular Labour Inspectors are required to upload the inspection report within 48 hours on Shram Suvidha Portal.

3. Retrospective amendment of EDLI Scheme:

   The Central Government issued the Gazette notification, dt. 18th November 2024, amending the Employees’ Deposit Linked Insurance scheme, 1976 (in short “EDLI Scheme”) and gave retrospective effect in its operation. The EDLI Scheme is a part of the Employees’ Provident Fund and Miscellaneous Act, 1952 providing assurance benefit to the nominees of the deceased employee. Amended EDLI Scheme will come into effect from 28th April 2024.

   According to the notification, Para 22 (3) of the EDLI Scheme was substituted with the new sub-para. As per the Amended sub-para, assurance benefit to the nominee/s of the deceased member who was in employment for a continuous period of twelve months preceding the date of death shall be an amount equal to the average monthly wages drawn (subject to a maximum of fifteen thousand rupees), during the twelve months preceding the month in which he died, multiplied by thirty-five plus fifty per cent. of the average balance in the provident fund account of the deceased. Provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees and shall not exceed seven lakh rupees.

4. UAN Activation and Aadhar seeding with bank account to avail benefit under ELI Scheme:

   The Employees’ Provident Fund Organisation (“EPFO”) in a circular dt. 22 October 2024 directed employers of all the establishments covered under EPFO to ensure activation of UAN and seeding the Aadhar with the bank account of the members who joined during the current financial year.

   In the light of the directions received from the Ministry of Labour & Employment, to ensure all the eligible employees benefit from the ‘Employment Linked Incentive (“ELI”) Scheme’, proposed in the budget 2024-2025, EPFO issued the circular mandating activation of UAN and seeding of bank account with Aadhar before January 15, 2025.

   Employees whose UAN is activated and have their Aadhar seeded with the bank account are entitled to receive benefit under the ‘Direct Benefit Transfer scheme’ (“DBT”). Benefits under the ELI scheme will be disbursed to eligible employees through DBT.

5. The Government of West Bengal extended the jurisdiction of Labour Courts/Tribunals:

   The Government of West Bengal by notification dt. November 19, 2024 (#LABR/562/23099/17/2023(LITECEIC), has extended the jurisdiction, both territorial as well as subject matter jurisdiction, of the Industrial Tribunals, Labour Courts, Employees' Compensation Court and the Employees' Insurance Court.

   As per the notification the Governor of the West Bengal empowered all the presiding officers (including the Judges-in-Charge) of the Industrial Tribunals, Labour Courts, Employees' Compensation Court, Employees' Insurance Court for adjudication disputes/cases under following enactments:

   1) Industrial Disputes Act, 1947

   2) Employees' Compensation Act, 1923

   3) Payment of Wages Act, 1936

   4) The Minimum Wages Act, 1948

   5) Employee's State Insurance Act, 1948.

   The Governor empowered the respective authorities for distribution and transfer of the pending cases and other cases filed on regular basis among Tribunals / Courts under their jurisdiction for its quick disposal.

6. Settlement of physical Provident Fund claims without seeding of Aadhar with UAN in certain cases:

   The Employees Provident Fund Organisation (“EPFO”) in a clarificatory circular dt. November 29, 2024 (Circular No: WUS/2020/Claim Settlement Without UAN-Clarification/8726) issued directions to the field offices in settlement of claims of certain class of members.

   Accordingly, the undermentioned classes of members are exempted from the operation of instructions issued in the circular dt. September 24, 2020 (Circular No: WUS/2020/Claim Settlement Without UAN-Clarification/914).

   a) International Workers (“IW”) who have already left India after completion of their assignments but without obtaining Aadhaar.

   b) Indian Worker who had permanently migrated to a foreign country and subsequently obtained citizenship of such foreign country without obtaining Aadhaar in India.

   c) Citizens of Nepal and Bhutan who are covered under the provisions of EPF & MP Act, 1952 but do not reside in India and consequently do not possess Aadhaar.

   With respect to the above stated classes of members the requirement of seeding of Aadhaar with Universal Account Number (“UAN”) is dispensed with and physical claims are required to be accepted for final settlement after duly verifying alternate identification proofs such as, Passport in case of IW or Citizenship Identification Certificate/Document in case of Nepalese and Bhutanese workers.

   Mode of payment of settled claims of the above stated members is through National Electronic Funds Transfer (“NEFT”).