1.
3. Latest India Regulatory Updates
4. Important Labour Related Judgments passed during August 16
5. Compliance Calendar for September 2016
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Page 5
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ALLSEC SMARTCONNECT
Stay updated. Stay connected.
September 2016
ALLSEC TECHNOLOGIES
Building Lasting Relationships
1. Growth Fostering HR Professionals
Page 32. Equal Remuneration Act - Labour Compliance for all Organizations

2.
Allsec Technologies Ltd. Page 2
Growth Fostering HR Professionals
Both the employer as well as the employee can
save money by rejigging the salary and including
the GTC i.e. Group Term Cover. Every employer
wants to retain good employees to save money,
control. Similarly, every employee wants a higher
take-home pay and lower tax outgo. Evidently,
for their kith and kin and society as a whole. The
good news is that all these can be achieved if GTC is
included in CTC structure.
Take a look at the Wins:

above 80C and lowest insurance premium.
 The organization receives better
retention and increased trust of the employee.
 The family receives much needed
Group insurance and retirement products which
1) Group Superannuation Scheme
2) Group Term Life Insurance
3) Group Gratuity Scheme
4) Leave Encashment Scheme
5) National Pension Scheme – Latest
addition
Employees retention can
be increased by including
the above long-term
incentives including GTC
in the compensation
structure. These
more money to employees but also make their
by helping them in achieving long term goals
systematically. In next few paragraphs we bring
more clarity and reason to change the CTC structure
as per tax laws and include GTC. Specially, after
budget 2016, neither there has been increase in the
any changes in the perquisites section.the CTC
structure as per tax laws and include GTC. Specially,
after budget 2016, neither there has been increase
been any changes in the perquisites section.
Employee gets lowest premium and deduction over
and above 80C. The premiums paid by their
employers are not treated as perquisites. Employees
under Section 10(10D)
Purushothaman S,
DGM-HR, Allsec .
Large scale production, increasing effects of
recession, technical and
technological develop-
ments have opened up
new training needs for
the people at work.
Fresh initiative and
emphasis on research and development in the realm
of industry also led to HR development to cope with
the increasing demand for technically capable people.
Roles that Human Resource professionals perform to
create greater efficiency and growth, can be broadly
categorized
 Strategic Role: Performance Development,
Strategic Planning, Resource Optimization, Work
Process Redesign, Financial Accountability and HR
Planning
 Contingent Role: Adoption of new technology,
Customer relationship management, Competition,
Globalization, Leadership Development
 Employee Advocate Role: Employee
Development, Gain and Profit sharing strategies,
Dispute resolution, Grievance redressal, Employee
welfare, Work Environment, Education & Training,
Career and Succession Planning
 Operational Role: Efficient decision making,
Mentoring, Counseling, Negotiator, Motivator,
Communicator
 Administrative Role: Strategic Partner, Cultural
integrator in M&A, Talent Management, Change
agent, Administrative expert, Diversity management
It has to be mentioned that these roles are not final or
permanent but would keep evolving and changing as
the years roll and technology could transform the
traditional roles to virtual HR.
Human Resources Management and Development
approaches have been seizing the attention of
professionals, especially in the new millennium.
Widespread changes in business environments,
employee-management relationships, emergence of
generational and cultural diversity, have all given an
interesting twist to management of human resources
within organizations in India.
Humanization of work environment, quality of work life
movement and the quality circles approach globally
has initiated action to attain better organizational
commitment among the work force.
Changes in business environment have substantially
affected approach to manpower. Technological
changes are prominent and automation of office
operations, quick communication systems, electronic
revolution have all revolutionized vital areas of
business. Operational efficiency or manpower must
cope with such a revolutionary change in the
technology necessitating new approach to manpower.
Political philosophy has also undergone substantial
change globally and in India, pushing a renewal in
approach to human side of enterprise. Globalization,
another important aspect of change in the business
environment of today, requires a human resources
approach to manpower.
Business philosophy, skills, expertise, efficiency and
particularly global corporate citizenship philosophy
lead by successful firms, is making all organizations to
deliberately update their perspective to suit the
internationally emerging trends. Indian managers must
also develop a human resources philosophy to guide
their management practices in a global setting.

3.
Page 3Allsec Technologies Ltd.
Equal Remuneration Act - Labour Compliance for all Organizations
Almost every employee would be paying insurance
could be due to:
1)
premium due to 80C limit:
There are a number of employees who pay
under section 80 C, especially the ones in the
higher income bracket. Because their EPF and
tuition fees are also higher than the 80 C limit of Rs
150000/-, therefore, they can get the extra tax
2) Lower risk cover than required:
The employer should get term cover up to 8-10
times of salary for providing the necessary risk
People in India treat insurance as an investment
misconception can be dealt with to a great extent
by providing the risk cover based on the income.
3) Higher premium for desired risk cover;
The premium for GTC is comparatively lower than
the individual insurance. Moreover, the premium
rates in past few years have has come down which
makes it more important to even relook older
policies premium at employee’s end and getting
lower premium in comparison with GTC.
4) Lower cover and higher investment due to
Even after paying a higher premium the employees
might not be getting the necessary risk cover due
to type of policy i.e. investment instead of
protection. Hence, the additional premium can be
diverted to other tax saving options i.e. NPS, home
loan etc.
Higher the age and income, more the tax
GTC increases tax saving by Rs 5000/- on premium
of Rs 15000 for person having monthly salary of Rs
1 lakhs. Increase in tax saving by Rs 18000/- on
premium of Rs 56000/- for person getting Rs 4
lakhs monthly and above 35 yrs. Increase in tax
saving by Rs 25000/- on premium of Rs 78000/- for
a person getting Rs 4 lakhs monthly and above 40
yrs. Term cover 5 Crores. Increase in tax saving by Rs
60000/- on premium of Rs 200000/- for a person
getting Rs 4 lakhs monthly and above 50 yrs.
GTC helps in Statutory Compliance:
All establishments with at least twenty full time
permanent employees and to whom the
Employee’s Provident Fund and the Miscellaneous
Provisions Act 1952, applies, have a statutory
liability to subscribe to the Employee’s Deposit
Linked Insurance Scheme (EDLI), to provide life
insurance cover for all the employees.
Ravisankar V,
Head Statutory Consulting, Allsec
women in such work is prohibited or restricted by or
under any law for the time
being in force. But this
provision of the Act shall
not affect any priority or
reservation for scheduled
caste or scheduled tribes,
ex-servicemen, retrenched
employees or any other class or category of persons in
the matter of recruitment to the posts in an
establishment or employment.
Appropriate Government shall appoint an officer who
will have the power of civil court for the purpose of
hearing and deciding complaints with regards to the
contravention of any provisions of the Act, Employees
shall send their complaints in the prescribed forms
against the employer for nonpayment of salary at
equal rates to men and women employees for the
same work or work of a similar nature.
It is the duty of the Employer to maintain Register of
Workers in Form D which is required to be kept in the
premises where the employees are employed.
Employer who have not produced the records or lack
of production of records at the time of inspection by
the enforcement officer will be punishable with
Imprisonment upto one month or Fine upto Rs.10,000
or both. Employer who have contravened to any of
the provision of the Act will be punishable with
Imprisonment of three months to One year or Fine
minimum of Rs.10,000 upto Rs.20,000 or both.Any
employer who has refused to produce the records to
the Enforcement officer will be punishable with Fine
upto Rs.5000/-
Provisions of Industrial Dispute Act, 1947 will be used
for recovery of money due from employer arising out
of the decision of an authority appointed under Act
Equal Remuneration Act was enacted in the year 1976
to provide equal remuneration to men and women
employees and for the prevention of discrimination, on
the ground of gender, against women in the matter of
employment and for matters connected therewith or
incidental thereto. This Act extends to the whole of
India and is applicable to all the establishments from
the date of commencement of this Act.
Employer shall pay equal remuneration to men and
women workers for performing the same work or work
of a similar nature, shall not reduce the rate of
remuneration of any worker for the purpose of
complying with the provisions of the Act and shall not
make any discrimination while recruiting men and
women and during the period of employment such as
promotion, training or transfer and for same work or
work of similar nature.
Remuneration means Basic Salary and any additional
emoluments whatsoever payable, either in cash or in
kind, to a person employed in respect of employment
or work done in such employment, if the terms of the
contract of employment, express or implied, were
fulfilled.
Same work or work of a similar nature means work in
respect of which the skill, efforts and responsibilities
required are the same, when performed under similar
working conditions, by a man or a woman and the
differences, if any, between the skill, effort and
responsibility required of a man and those required of a
woman are not of practical importance in relation to
the terms and conditions of employment.
Employer while recruiting employees for the same
work or work of a similar nature, or in any condition of
service subsequent to recruitment such as promotions,
training or transfer, shall not make any discrimination
against women except where the employment of

4.
However, under Section 17(2A) of the Act, the
employer may be exempt from contributing to this
scheme, if he/she has provided for better
Employee Provident Fund Organization (EPFO)
through a life insurer. Group Term Assurance
Scheme in Lieu of EDLI is a better alternative since it
GTC helps in staying par with competitors:
In 2008, Infosys Technologies Ltd announced
renewal of the group life insurance policy covering
97,000 employees with Life Insurance Corporation
of India (LIC). This shows that the leading
companies are actually providing the group term
cover and now the others need to provide to
helps in job satisfaction of current employees and
stay par with other corporate employees could be
looking for. In foreign countries/companies the
tool and soon it will become in India. Thus, GTC
helps in maintaining your position as employer of
choice.
The Insurance coverage can be Uniform or Graded:
Uniform cover means similar for all employees.
Graded cover can be on the basis of 1) Rank, 2)
Salary levels, 3) Cost to company, 4) Outstanding
loan, 5)Liability amount 6) Size of bank deposit, 7)
Future Service Gratuity of Gratuity Scheme, 8) Life
Cover in lieu of Employee Deposit Linked
Insurance (EDLI) scheme, 1976, Any other.
Service Gratuity of Gratuity Scheme, 8) Life Cover
in lieu of Employee Deposit Linked Insurance
(EDLI) scheme, 1976, Any other.
It is recommended to have insurance coverage on
times to be chosen by employee as per their
provided as riders that insure for critical illnesses,
accidental deaths, disabilities, etc. Avail Tax
prime asset i.e. human resource. The contribution
by the employer is deductible as a business
expense. Additionally, these contributions are
also not treated as a perquisite in the hands of the
employee. From the employee's perspective,
commuted on maturity are exempt from tax.
Page 4
Regulatory Updates
Allsec Technologies Ltd.
All day opening permission for All Shops & Establishments - Telangana
Telangana Govt clarified vide Notification No. G.O.MS.No.51 that all Shops & Establishments covered under AP
Shops & Establishments Act can open for all the days in the Year for a further period of 3 years, subject to certain
conditions. The same has been published in the State Gazette Notification.
Andhra Pradesh Govt Introduce the Chandranna Bhima Scheme
Andhra Pradesh Govt has introduced the CHANDRANNA BIMA SCHEME for the families ofUnorganized workers
between the age group of 18 to 70 years. This scheme will be covered Rs.500000/- for any Death or Permanent
Disablement under various State Insurance schemes. Also it is covered Rs.362500 for Partial Permanent disabili-
ties and Rs.30000/- under Natural death relief.
IT Recognition Order is Mandatory for Voluntary EPF Coverage
EPFO has clarified that the IT Recognition Order is mandatory and it should be submitted along with proposal for
Voluntary Coverage, which has been amended in the Section 17(1)(a) of the Act under Para 27. Now onwards
Field Offices will not ask for the same and the proposal may reject in case of non-availability of IT Recognition
Order.
ESIC Declared the Contribution Rates for New Implementation areas
ESIC has come up with the new Rates of Contributions of Employer and Employee for the First 24 Months on the
new Implementation Areas. Rates of contribution for Employee Contribution will be 1% and Employer Contribu-
tion will be 3%. After completion of 24 month the contribution will be revised as per the regular rates as per Rule
51.
Delinking of Wrongly linked UAN
EPFO has understood the issues of wrongly linked UANs and has found solution for the same. It has been clarified
with a Notification on 24th Aug 2016 that Employer can send the request for Delinking of Wrongly mapped UAN
of their own employees with other’s UAN to acc.is@epfinida.gov.in with a copy to ravi.kant@epfindia.gov.in . This
request can be made by the Employer on or before 30th Sept 2016.
Revised procedure for claiming PF Advance
EPFO has clarified that the attestation by the employer on the declaration form for claiming Advance is not
required. However, the attestation of the employer is required in the claim form No.31.
ESIC on Social Media
ESIC declared that the Head Quarters have created its own Social Media account on Facebook page having URL
https://www.facebook.com/esichq for disseminating authorized official information / activities / achievements
and communication related to ESIC. Also it has requested to delete or change the name of other Facebook
accounts which contains ESIC name or logo.
EPFO Declaration of Approval on ECR Revision
EPFO has given the authorization to the ACC (Zone) to accept the ECR Revision for the cases of beyond one year.
of beyond 6 months and within 1 year.
Minimum Wages Revisions w.e.f.01.04.2016
The Minimum Wages Revisions has been released by the following State Governments of India
 Punjab w.e.f. 01/March/2016
 Kerala w.e.f. 01/April/2016
Hyderabad High Court Judgment on Bonus Amendment
Hyderabad High Court on behalf of the state of Telangana & the state of Andhra Pradesh has issued a Stay Order
Ministry of Labour & Employment. The court has issued a Show cause notice to the respondents returnable on
11.07.2016. This judgment follows various other High Courts of Allahabad, Kerala & Madhya Pradesh in recent past.
Press Note on PF Coverage by Ministry
The Ministry of Labour and Employment has released a Press note thru PIB (Press Information Bureau) about a
proposal for Comprehensive amendment to the EPF & MP Act 1952. This proposal states that the limit of the
be released on the receipt of the Bill passed in the both houses.
Minimum Wages Hiked for Contract Labours (Central)
The Minimum Wages of Contract Labour under Contract Labour (Regulation & Abolition) Central Rules 1971, has
where applicable (or) Fixed by any Agreement, Settlement or award (or) Ten Thousand Rupees, whichever is
higher.
However, under Section 17(2A) of the Act, the
employer may be exempt from contributing to this
scheme, if he/she has provided for better
Employee Provident Fund Organization (EPFO)
through a life insurer. Group Term Assurance
Scheme in Lieu of EDLI is a better alternative since it
GTC helps in staying par with competitors:
In 2008, Infosys Technologies Ltd announced
renewal of the group life insurance policy covering
97,000 employees with Life Insurance Corporation
of India (LIC). This shows that the leading
companies are actually providing the group term
cover and now the others need to provide to
helps in job satisfaction of current employees and
stay par with other corporate employees could be
looking for. In foreign countries/companies the
tool and soon it will become in India. Thus, GTC
helps in maintaining your position as employer of
choice.
The Insurance coverage can be Uniform or Graded:
Uniform cover means similar for all employees.
Graded cover can be on the basis of 1) Rank, 2)
Salary levels, 3) Cost to company, 4) Outstanding
loan, 5)Liability amount 6) Size of bank deposit, 7)
Future Service Gratuity of Gratuity Scheme, 8) Life
Cover in lieu of Employee Deposit Linked
Insurance (EDLI) scheme, 1976, Any other.
Service Gratuity of Gratuity Scheme, 8) Life Cover
in lieu of Employee Deposit Linked Insurance
(EDLI) scheme, 1976, Any other.
It is recommended to have insurance coverage on
times to be chosen by employee as per their
provided as riders that insure for critical illnesses,
accidental deaths, disabilities, etc. Avail Tax
prime asset i.e. human resource. The contribution
by the employer is deductible as a business
expense. Additionally, these contributions are
also not treated as a perquisite in the hands of the
employee. From the employee's perspective,
commuted on maturity are exempt from tax.

5.


 Transfer of an Employee of Transferable Post is an incident of service. Del HC 456

 Death by“Sun Stroke”will be accident under Compensation Act. Jhar HC532
 No Relief to be granted if transferred Employee fails to report for duty. Del HC 456
Employees Provident Fund & Miscellaneous Provisions Act
For all locations in India, PF Remittance has to be done by 15/June/2016
Employees State Insurance Corporation Act
For all locations in India, ESIC Remittance has to be done by 21/June/2016
Professional Tax Act
Professional Tax Remittance cum Return has to be done for all the locations in the following States on or before
the respective due dates
Andhra Pradesh……...10th June, 2016
Telangana…………….10th June, 2016
Madhya Pradesh……..10th June, 2016
Gujarat………………...15th June, 2016
Jharkhand……………..15th June, 2016
Karnataka……………..20th June, 2016
West Bengal…………..21st June, 2016
Maharashtra…………..30th June, 2016
Orissa………………….30th June, 2016
Assam…………………30th June, 2016
Tripura…………………30th June, 2016
Kerala Shops & Commercialized Establishments Workers Welfare Fund Act
Remittance Cum Return under this Act has to be done for all locations in Kerala, on or before 05th June, 2016
Page 5
Important Judgments
Allsec Technologies Ltd.
 Company Director can’t be personally liable for default of ESIC Contributions (KARHC)
 Workman has to prove to have worked for 240 days in the year. (DelHC 948)
 Trainees without providing Training would be held as “workman” (Cal HC 915)
 ESIC Contribution not to be deposited when salary crosses Rs.15000/pm. (P&H HC 939)
 Termination is illegal without compliance of section 25G of the ID act ( Guj HC 958)
 It is for the employee to prove that he is a “workman” under ID Act (Guj HC964)
 Person engaged through Contractor are also “Wokrman” (Raj HC996)
 Date of Birth recorded at initial stage can be changed nearing Superannuation (Jhar HD984)
 Different establishments being run independently , by mother and son, not to be clubbed for coverage under
PF Act(KER HC 925)
 Liability of EPF dues lies upon the ultimate controller of the establishment(BOM HC 1006)
 Provident Fund not applicable when employees are less than 20(MP HC 932)
 PF authority is vested with the power of civil court(MP HC 968)
Employees Provident Fund & Miscellaneous Provisions Act
For all locations in India, PF Remittance has to be done by 15/September/2016
Employees State Insurance Corporation Act
For all locations in India, ESIC Remittance has to be done by 21/September/2016
Professional Tax Act
Professional Tax Remittance cum Return has to be done for all the locations in the following States on or before
the respective due dates
Andhra Pradesh 10th September, 2016
Telangana 10th September, 2016
Madhya Pradesh 10th September, 2016
Tamil Nadu 10th September, 2016
Kerala 10th September, 2016
Gujarat 15th September, 2016
Karnataka 20th September, 2016
West Bengal 21st September, 2016
Maharashtra 31st September, 2016
Orissa 31st September, 2016
Assam 31st September, 2016
Tripura 31st September, 2016
Kerala Shops & Commercialized Establishments Workers Welfare Fund Act
Remittance Cum Return under this Act has to be done for all locations in Kerala, on or before 05th September,
2016
Compliance Calendar for September 2016

6.
Page 6
About Allsec HRO
Allsec Technologies Ltd. is a global company with vast expertise in providing Business Process Solutions across
various industry verticals. Allsec is a solution leader in HRO services of Payroll Administration, Statutory
Compliance, Leave Management and Time & Attendance, processing over Half-a-million pay-transactions every
month across 200 plus companies in India, APAC and Middle East. By taking process responsibility, improving cost
assurances, Allsec distinguishes and enhances business experience for its clients.
Mail to smartconnect@allsectechinc.com
Copyright 2016 Allsec Technologies
facts or circumstances. The content of this document is made available on an as is basis, without warranty of any kind. Allsec
disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on
that content. Allsec and the author reserves all rights to the content of this document
Allsec Technologies Ltd.