Wednesday, September 29, 2010

Employees continuing/ working in any Establishment on Government Holidays


As per legal statutes it is not advisable or legal to act against a law, when there are specific laws to prevent or regulate an activity. The organization needs to follow the same. 

Additionally, if any organization is a continuous manufacturing process, then they can take prior exemptions from the concerned authorities under the provisions and accordingly must pay the employees extra wages for deemed over-times in addition to compensatory off and other benefits as applicable under statutes.


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What is Compliance under Human Resource Management and Labour Laws



Statutory compliance mean the legal compliance as mentioned in the Statute books/laws/legislation applicable to any organization or vendors.

The obligation of compliance starts from the registration of the contractor, taking required license etc. to maintenance of registers and records, filing of periodical returns and observing the service conditions of employees including payment of wages, granting of leave, and providing them the facilities of health, welfare and safety.

If any organization/company is a contractor as defined under the Contract Labour (Regulations and Abolition) Act, then they have to comply with the provisions of this Act. They need to read the provisions, so that they can become familiar with the statutory obligations which been imposed on them by the Government.


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Tuesday, September 28, 2010

Similarities between Company and Limited Liability Partnership


Sr.
no.
Company
Limited Liability Partnership
1
Limited liability and perpetual succession
Limited liability and perpetual succession
2
Must have common seal

Common seal is optional
3
Provisions of approval of name, change of name are similar.

Provisions of approval of name, change of name are similar.

4
REGISTRAR OF COMPANIES is the administrative authority

REGISTRAR OF COMPANIES is the administrative authority

5
Provisions of name, its approval and change are similar.

Provisions of name, its approval and change are similar.


6
No personal liability of individual director or member [except of director
of private company in some cases like income tax and sales tax dues].
No personal liability of partner, except in case of fraud.
7
Complicated procedure for change of registered office, particularly when change is to other State

Simple procedure to change registered office of LIMITED LIABILITY PARTNERSHIP  anywhere in India just
by informing  REGISTRAR OF COMPANIES and following prescribed conditions
8
Memorandum and Articles, details of directors, accounts, annual return,
special resolutions etc. filed by  LIMITED LIABILITY PARTNERSHIP with  REGISTRAR OF COMPANIES will be available for public
inspection
Incorporation document, details of partners, accounts, statement of solvency
and annual return filed by LIMITED LIABILITY PARTNERSHIP with  REGISTRAR OF COMPANIES will be available for public inspection


9
Powers to Central Government to inspect records of company and to order investigation

Powers to Central Government to inspect records of company and to order investigation

10
Provisions of compromise, arrangement or reconstruction of companies are
similar


 Provisions of compromise, arrangement or reconstruction of LIMITED LIABILITY PARTNERSHIP

11
Company can be would up voluntarily or by order of Court

LIMITED LIABILITY PARTNERSHIP can be would up voluntarily or by order of Court

12
REGISTRAR OF COMPANIES can strike off name of defunct company.

ROC can strike off name of defunct  LIMITED LIABILITY PARTNERSHIP




















































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Definitions of Employees under Minimum Wage Act

Highly Skilled:A highly skilled worker is one who is capable of working efficiently and supervises efficiently the work of skilled employees.


Skilled:
Skilled employee is one who is capable of working efficiently of exercising considerable independent judgment and of discharging his duties responsibly.

A Semi-skilled employee:
A semi-skilled employee is one who does work general of a well defined routine nature where the major requirement is not so much of the judgment, skill and dexterity, but of proper discharge of duties assigned to him for a relatively narrow job and where important decisions are made by others. His work is thus limited to the performance of routine operation of limited scope.

An Unskilled employee:
An unskilled employee is one who does operations that involve the performance of simple duties which require exercise of little or no independent judgment or previous experience, although a familiarity with the occupational environment is necessary. His work may thus require in addition to physical exertion, familiarity with a variety of articles or goods.

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FORM Number V - (Maharashtra Contract Labour (Regulation and Abolition) Rules, 1970)

Every application for the grant of a license in regional labour office shall be accompanied by a certificate from the Principal employer in Form No. V to the effect that the applicant has been employed or is proposed to be employed by him as contractor in relation to his establishment and that he undertakes to be bound by all the provisions of the Act and rules made there under in respect of employment of contract labour by the applicant. Form No. V under Maharashtra Contract Labour (Regulation and Abolition) Rules, 1970 is one of the essential documents for contractors in order to get contract labour license from respective labour authority. On the basis of Form No. V the labour authority can come to the conclusion that there is valid contract work going on in establishment and to that effect the applicant contractor needs contract labour license in order to comply with respective labour statute.


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The Child Labour (Prohibition and Regulation & The Child Labour (Prohibition and Regulation) Rules, 1988



The Child Labour (Prohibition and Regulation Act, 1986)

Rules framed thereunder : The Child Labour (Prohibition and Regulation) Rules, 1988
                                                         


Preamble

An act to prohibit the engagement of children in certain employment and to regulate the conditions of work of children in certain other employments.

Child means a person who is below 14 years of age (Section 2 (ii))

Restriction on Employments (Section 3 r/w Part A and B of the Schedule)
Child below the age of fourteen shall not be allowed to work in such occupation as set forth in Part A of the Schedule or in any workshop wherein any of the process set forth in Part B of the Schedule is carried on

However he will not be allowed to work in such workshop provided it is carried by the aid of his family or to any school established by or receiving assistance or recognition from government

Hours and period of work (Section 7)
  • Child shall not work for more than 3 hours without an interval for rest for atleast one hour.
  • The period of work shall not exceed 6 hours including the rest interval and time spent on waiting for work
  • Child not allowed to work during 7 pm and 8 am
  • Overtime not allowed
  • Double employment of the child is banned. If  a child is working in any establishment, he is not required to work in other establishment

Weekly Holidays (Section 8)
  • One whole day holiday  allowed in each week
  • Notice of holidays should be permanently displayed in a conspicuous place and it shall not be altered more than once in 3 months

Notice to be given (Section 9)
Notice has to be given to the Inspector within whose local limits the establishment is situated regarding:-
a)      The name and situation of the establishment
b)      The name of the person in actual management of the establishment
c)      The address to which the communication regarding the establishment is to be sent
d)     The nature of the occupation or process carried on in the establishment

Within 30 days from the date of employment of any child

Section 11 r/w Rule 16 and Form A
A register having the following details should be available for inspection by the inspector at all times when work is being carried on in the establishment
  • Name and date of birth of every child employed
  • Hours and period of work and interval of rest
  • Nature of work that the child is expected to do
  • Other particulars that may be prescribed
  • Such register is to be maintained in Form A
  • On a yearly basis though it shall be retained for a period of 3 years after the last entry has been made


Health and Safety (Section 13)
The appropriate Government may be notification, makes rules for health and safety of the children employed.

Penalty (Section 14)
  • If a child is employed or permitted to be employed. The punishment extends to imprisonment for a term not less than 3 months and not exceeding 1 year or with a fine which shall not be less than Rs. 10,000 but which may extend to Rs 20,000 or both
  • If there is a failure to give notice as required under Section 9, failure to maintain registers or making erroneous entries in registers, in accordance with Sec 11, failure to display notices as required by Sec 12 or in case of contravention of any other provisions of the Act


Schedule to the Act              : List of occupation and processes in which children are not allowed to Work. Annexure I
                                                     

Statutory Requirements:-
·     Notice to the Inspector (Section 9)
·     If the child is employed or allowed to work, Occupier shall within a period of 30 days from the commencement of employment, send to Inspector a written notice containing particulars such as name, address of establishment, name of the person in actual management, communication address and nature of occupation.
·      Display in English and local language a notice containing abstract of Section 3 (prohibition of employment) and Section 14 (penalties) (Section 12)
·     Register maintained under the act should be for a period of three years after the date of the last entry. (Section 12)  
·     Register should be and should be available for inspection by the inspector at all times when work is being carried on in the establishment. The register should contain the following details:-
a)      Name and date of birth of every child employed
b)      Hours and period of work and interval of rest
c)      Nature of work that the child is expected to do so
d)     Other particulars that may be prescribed
e)      Such register is to be maintained in Form A
f)       On a yearly basis though it shall be retained for a period of 3 years after the last entry has been made. (Section 11 read with rule 16).

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Main Labour Statutes prevailed in India


Important Labour Statutes prevailed in India

1.       Apprentices Act
2.       Contract Labour (Regulation and Abolition) Act, 1970 (Regional State Contract Labour Acts)
3.       Shops and Establishment Act (Region wise)
4.       Employees Provident Funds Act, 1952
5.       The Employees State Insurance Act (ESI Act)
6.       Equal Remuneration Act
7.       Factories Act, 1948
8.       Labour Laws (Exemption From furnishing returns and maintaining registers by Certain Establishments) Act, 1988
9.       Payment of Bonus Act, 1965
10.   Payment of Gratuity Act, 1972
11.   Industrial Disputes Act
12.   Industrial Employment (Standing Orders) Act
13.   Minimum Wages Act
14.   Payment of Wages Act
15.   The Maternity Benefit Act
16.   Trade Unions Act, 1926
17.   Workmen’s Compensation Act, 1923

Article on Labour laws compliance for Vendor compliance Management


Labour laws compliance for Vendor compliance Management

It is a fact of life that we all inhabit a vastly regulated world that can frequently seem frightening. How do you know what you have to comply with or if something have changed to move you from your previous compliance to non-compliance? What do you do when you get conflicts between principles, statutes, regulations etc.? What will be your action plans while overcoming with day to day labour laws compliance issues? What are the sources where most of the issues can get solved? How to deal with Government, labour, shop and establishment, ESIC, Provident Fund etc. authorities? What are the legal consequences and penalties when you face with non compliance in your organization?

Ongoing globalization will increase the complexity of principles, regulations, and the cultures in which organizations operate. Increasing litigation, legislation, and regulations will carry important compliance implications. Ever growing competition will increase the pressure on organizations to enhance productivity.  Good corporate governance demands that every organization comply with regulatory needs, and this is not a choice; but the increasing complexities of business in a diverse, global environment have brought the need for a more proactive management of the process.

Compliance has become non-negotiable for everyone today. The word “statutory” means "of or related to statutes," or what we normally describe laws or regulations. Compliance just means to comply with or adhere to. Hence statutory compliance means you are following the laws on a given issue. The term is most often used with organizations who must follow lots of regulations. When they forget or refuse to follow some of those regulations, they are out of statutory compliance. A company that follows all the rules is in statutory compliance.

With increased outsourcing and heightened regulatory concern, all establishments have to carefully manage their relationships with vendors of all shapes and sizes. To achieve that, statutory compliance under various labour laws should be ensured by establishments and the vendors deployed into those establishment. It is not just limited to the statutory deposits, returns and records to be maintained by the employer under various labour laws, but it also to represent them in case of prosecution under various statutes. Hence, it hardly needs to be emphasized that the labour related laws cast an obligation on the employer as well as their vendors for careful, perfect and timely compliances. In the event of violation or delay in complying with the statutory requirements, the consequences in terms of levy of damages, prosecution is inevitable. Further, under most of the employment laws, the top executives or the head of the institution/organization, as the case may be, is held liable and responsible and is required to personally attend such matters before the competent Authority or Court. In order to facilitate day-to-day functioning smoothly, Vendor compliance Management will be an added advantage to overcome with all the lacunas faced by establishment and their vendors.

The Various Labour statutes under which every establishment and their vendor need to comply are as follows:

1. Apprentices Act
2. Contract Labour (Regulation and Abolition) Act, 1970
3. Employees Provident Funds Act, 1952
4. The Employees State Insurance Act (ESI Act)
5. Equal Remuneration Act
6. Factories Act, 1948
7. Labour Laws (Exemption From furnishing returns and maintaining registers by Certain
    Establishments) Act, 1988
8. Payment of Bonus Act, 1965
9. Payment of Gratuity Act, 1972
10. Industrial Disputes Act
11. Industrial Employment (Standing Orders) Act
12. Minimum Wages Act
13. Payment of Wages Act
14. Trade Unions Act, 1926
15. Workmen’s Compensation Act, 1923
16. The (STATE) Shop and Establishment Act.

In Vendor compliance management everybody who are concerned with this has to also keep in mind the main critical implication of non compliance under various labour statutes like, for Principal Employer it would be show cause notice to Directors, Fine, Penalties, closure of business etc., for Vendor/Contractors it would be loss of pay, termination of contract, penal action etc.

The Principal employer as well as vendors should also aware the types of fines which they can face on basis of non compliance, namely under Contract Labour Act ‘s Section 22- punishment for obstructing the inspector or failing to produce registers etc. - 3 months’ imprisonment or fine upto Rs.5000/-, or both.  Under Section 23 of Contract labour act for violation of the provisions of Act or the Rules, imprisonment of 3 months or fine upto Rs.1000/- and on continuing contravention, additional fine upto Rs.100 per day.
Under Payment of Wages Act the punishment will be imprisonment for 6 months or fine upto Rs.10,000/- for avoiding to make payment by making false statement or representation.
Under The Employees’ Provident Funds And Miscellaneous Provisions Act the defaulting person is liable to be arrested without warrant. Defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines up to Rs.10,000 (S.14) For any retrospective application, all dues have to be paid by employer with damages up to 100% of arrears. Rate of damages on delayed payment of contribution w.e.f. 26 / 09 / 08, up to 2 months @5% per annum. Above 2 months & up to 4 months @10% per annum. Above 4 months & up to 6 months @ 15% per annum. Above 6 months @ 25% per annum. Simple interest @ 12% pa is charged separately on delayed payment of contribution

There are so many judgments took place in the field of labour law. Few we can cite which are as follows:

  1. Payment of Gratuity Act: If an employee has not completed his 5 years, he is eligible for gratuity.
Judgment: If employees completed his 4 years in service and have completed 240 days in the 5th year then he is entitled for 5 years gratuity.
Refer to the case law citation- Mettur Beardsell Ltd., Madras v. Regional Lab. Commissioner (Appellate Authority under Payment of Gratuity Act), Madras etc., 1998 (3) LLN 414.
  1. The Employees’ Provident Funds And Miscellaneous Provisions Act: Section 7A, Determination of money due from an employer-Section 7C escaped amount-Petitioner challenged the impugned order by the Respondent No. 1, holding petitioner as principal employer and to pay amount of contributions with interest as per said order.
Refer to the case law citation Best and Crompton Engg. Ltd. Bangalore vs. Assistant Provident Fund Commissioner, E.P.F. Organisation, Bangalore and Anr.
  1. Contract Labour (Regulation and Abolition)Act, 1970-  Petitioners have worked for 240 days in a year-and having rendered service for two years-mere working for 240 days would not entitle a contractual or causal worker to claim regularization- petitioners were employee of contractor- Judgment given in this case is dismissed petition and delivered judgment as “Not entitled to regularization”
Refer to the case law citation Prem Shankar Pandey and Another vs. National Thermal Power Corporation Ltd. and others


To sum up we can only say one thing that implementation of Vendor compliance Management is today’s one of the top most need in order to keep the organization’s name intact, secure and popular among top listed organization list.

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Saturday, September 25, 2010

Provident Fund on "International Workers" in India


The government of India had made certain fundamental changes vide a notification dated 1 October 2008 in the Employee Provident Fund Scheme, 1952 and the Employee Pension Scheme, 1995 (collectively referred to as Indian social security schemes). This has significant impact on the expatriates and the employers with whom they work in India.

The Additional Central Provident Fund Commissioner (ACPFC) has issued certain clarifications with respect to these amendments vide his letter dated 7 January 2009 (No. Acturial/7(9)2008/ 75683) to all Regional Provident Fund Commissioners. Also, the ministry of labour has posted certain FAQs on their website (www.epfindia.com) clarifying the position relating to the International Worker (IW)

Recently, The Government of India has entered into an agreement on Social Security with the Government of Belgium and a few more countries. This agreement aims at achieving equality on the principles of reciprocity and is intended to benefit the employees and employers of both India as well as Belgium. The salient features of the agreement are:
The employees of the home country deputed by their employers, on
· short-term assignment for a pre-determined period of up to 60 months, to the host country need not remit social security contribution in that country.
Export of pension due under the legislations of one country to the
· other country, where the member might choose to live, is possible.
Totalisation of the contribution periods earned while in service in
· both the countries for the purpose of deciding eligibility to benefits is possible under certain circumstances.
 The employers are saved from making double social security
· contributions for the same set of employees, thereby enhancing the competitiveness of their products and services.


FAQ on International Workers under EPF Act

1) Who is an International worker?
An International worker may be an Indian worker or a foreign national.
This means an Indian worker who has divided his/her career between India and another country with whom India has entered into a bilateral Social Security agreement or a foreign national working in India. (Para 2 ff)

2) Who is an ‘excluded employee’ under these provisions?
A ‘detached worker’ posted in an establishment in India but contributing to the social security programme of the source country in terms of the bilateral Social Security agreement signed between that country and India shall be an ‘excluded employee’ under these provisions. (Para 2 f)

3) Who is a ‘detached worker’?
An International worker, being not an Indian employee, contributing to the social security programme of the source country in terms of the bilateral Social Security agreement signed between that country and India and exempt from making any contribution to the Indian system for the period and terms as set out in such an agreement is a ‘detached worker’ for the purpose of compliance under the Indian system. (Para 2 f)

4) What does the term ‘Indian employee’ mean?
An employee, holding or entitled to hold an Indian passport and employed by an establishment covered under the EPF and MP Act, 1952 is an Indian employee under the Special provisions in respect of International workers. [Para 2 ff (a)]

5) Who all shall become the members of the fund?
a) Every International worker, other than an ‘excluded employee’ – from 1st Nov.2008.
b) Every excluded employee, on ceasing the status, - from the beginning of the month following that in which he/she losses the status. (Para 26)

6) Which category of establishments shall take cognizance of these provisions?
All such establishments covered/coverable under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 that employ ‘International workers’ either in India or abroad shall take cognizance of these provisions. (Para 26)

7) Whether PF rules will apply to an employee if his salary is paid outside India?
Yes, the provisions will apply irrespective of where the salary is paid. (Para 30)

8) Whether PF will be payable only on the part of salary paid in India in case of split payroll?
In case of split payroll the contribution shall be paid on the total salary earned by the employee. (Para 29)

9) ‘Monthly Pay’ for calculating contributions to be paid under the Act?
The monthly pay shall be the pay as specified under Para 29 of the EPF Scheme, 1952, which covers:
• Basic wages (all emoluments paid or payable in cash while on duty or on leave / holiday except Dearness allowance, House rent allowance, overtime allowance, bonus, commission or any other similar allowance payable in respect of employment and any presents made by the employer)
• Dearness allowance (all cash payments by whatever name called paid to an employee on account of a rise in the cost of living)
• Retaining allowance
• Cash value of any food concession

10) What portion of salary on which PF would be payable in case an individual has multiple country responsibilities and spends some part of his time outside India?
Contribution is payable on the total salary payable on account of the employment of the employee employed for wages by establishment covered in India even for responsibility outside India also.[Section 2 (b)]

11) Is there a minimum period of days of stay in India which the employee can work in India without triggering PF compliance?
No, there is no any minimum period of employment in India is required to be eligible for membership. Every eligible International worker has to be enrolled from the first date of his employment in India.

12) What constitutes the Pensionable service?
The service for which contributions are received and/or receivable as also the period of service rendered and considered as eligible under a Social Security Agreement that may cover an International worker. (Para 10 of EPS)

13) How is Pensionable service determined?
While the period of service for which contributions are received under the EPS will decide the quantum of pension admissible, the period of service rendered under a relevant social security agreement shall be taken into account only for the purpose mentioned under such agreement. (Para 10 of EPS)

14) Is there a cap on the salary up to which the contribution has to be made by both the employer as well as an employee?
No, there is no cap on the salary up to which the contribution has to be made by both the employer as well as an employee.

15) Is there a cap on the salary up to which the employer’s share of contribution has to be diverted to EPS?

Yes, the cap on the salary up to which the employer’s share of contribution has to be diverted to EPS remains at Rs.6500. (Para 3 of EPS)

16) What is a social security agreement (SSA)?

A social security agreement is a bi-lateral instrument to protect the interests of the workers in the host country. It being a reciprocal arrangement generally provides for avoidance of no coverage or double coverage and equality of treatment with the host country workers

17) What are the provisions covered in a social security agreement?
Generally a social security agreement covers 3 provisions. They are:

a) Detachment
Applies to employees sent on posting in the host country, provided he/she is complying under the social security system of the home country.

b) Exportability of Pension
Provision for payment of pension benefits to the beneficiary choosing to reside in the territory of the home country directly with out any reduction as also to a beneficiary choosing to reside in the territory of a third country.

c) Provision for totalisation of Benefits
The period of service rendered by an employee in the host country to be counted for the “eligibility” purpose and the payment may be restricted to the length of service, on pro-rata basis.

18) What is the status of the SSAs?
As of today, Social security agreements have been signed with Belgium, France and Germany. But the date of entry into force is yet to be notified. Negotiations are at various stages with The Netherlands, Czech Republic, Hungary, Norway, Switzerland, Sweden, Luxembourg, USA and Australia. Government level talks are on with many other countries where sizable numbers of Indian workers are employed. Although not a formal agreement, there is a reciprocal arrangement between India and Korea to settle the claims of the employees on completion of employment in the host country

19) Should the eligible employees from Belgium, France and Germany contribute under the Special provisions till such time the ‘date of effect’ is notified?
Yes, the International workers from Belgium, France and Germany shall be enrolled as members of EPF till such time the ‘date of effect’ is notified by the Government of India and after such workers obtaining a ‘detachment certificate’ from the appropriate authority in their countries, respectively. Till the ‘date of effect’ is notified no Indian employee posted to these countries and none of the employees from these countries working in India shall be eligible for detachment status.

20) Indian employees working abroad and contributing to Social Security Scheme of that country with whom India has social security agreement. Should they be covered for PF in India or should be treated as excluded employee?
As of today the date of effect of the SSAs is yet to be notified. Therefore, a posted employee, whose name is retained in the pay bill maintained by the employer in India, shall be covered under EPF. If an Indian employee is directly employed by a local employer abroad, such an employee shall be covered by the host country legislations.

21) Could the term "Indian employee" mean any foreign national who is directly employed by an Indian establishment i.e. a person who is in India not under a secondment arrangement or any deputation from a foreign employer but hired directly by the Indian establishment under local terms and service conditions?
The term Indian employee shall mean only such of those employees as explained under Q.No 4. No foreign national can be termed an Indian employee.

22) Whether a Third Country(C) National domiciled in a country (B) with which India (A) has a social security agreement is eligible for benefit under the social security agreement between India and that country?
Normally social security agreements are signed to cover the ‘Nationals’ of the respective countries. Therefore, the above employee may be eligible for the benefit provided that the Third country (C) has signed an enabling agreement with both India (A) as well as the Second country (B).

23) Indian employees working abroad and contributing to Social Security Scheme of that country with whom India DOES NOT have social security agreement. Should they be covered for PF in India or should be treated as excluded employee?
A posted employee, who is drawing wages from the employer in India, shall be covered under EPF. If an Indian employee is directly employed by a local employer abroad, such an employee shall be covered by the host country legislations.

24) Foreign nationals who are employed in India and being paid in foreign currency, whether to be covered or not?

Yes, International workers drawing salary in any currency and in any manner are to be covered. (Section 2 f).

25) Foreigners who are employed directly as an employee by an Indian establishment abroad to be covered or not?

The local employees of an Indian establishment engaged abroad shall be covered by the local legislations

26) Considering that in most countries issuance of work permit to an individual is a trigger for social security compliance, whether the purpose and type of visa i.e. business/ employment will be a determinant for a person to be considered as an International Worker?

The purpose of the visit of an individual is the main determinant for social security compliance. The type of visa may help in determining the purpose of visit. For example – a foreign national coming in to India under an employment visa is working in India.

27) Whether benefit of reciprocity can be extended to an International Worker if his home country provides for exemption from social security to Indian nationals going to work in that country under its domestic law even though there is no social security agreement with India?

In the absence of a formal agreement the benefit of reciprocity is available at the time of withdrawal of the pension claim and not at the time of coverage. (Para 14 of EPS)

28) Where will the survivor benefits be delivered in case of a covered employee holding a passport, being other than an Indian passport, issued by a country with which India is not having a SSA?

In the absence of a SSA, the survivor benefits such as widow/widower pension, children /orphan pension, nominee/parent pension, etc. as the case may be, shall be payable to a bank account of the eligible beneficiary in India. (Para 14 of EPS)

29) What is the criterion for receiving the withdrawal benefit for the services of less than 10 years under EPS, 1995?

In respect of employees hailing from the countries with which India has signed a SSA, the withdrawal benefit shall be paid or accounted for as per the provisions of the SSA. In all other cases, it shall be guided by the principle of reciprocity with reference to the entitlement available to Indian employees in the other country. (Para 14 of EPS)

30) How long an Indian employee retains the status of “International worker”?

An Indian employee attains the status of “International worker” only on account of his employment in a country with which India has signed a SSA. He shall remain in that status till the time he avails the benefits under a social security programme covered under that SSA. (Para 2 f)

31) Under what condition the contributions received in the PF account are payable along with interest?

The full amount standing to the credit of a member’s account is payable if any one of the circumstances mentioned under Para 69 of the EPF Scheme, 1952 is fulfilled

32) Is there a cap on the salary up to which the contribution has to be made to EDLI Scheme by both the employer?

Yes, the cap on the salary up to which contribution has to be made to EDLI Scheme remains unchanged at Rs.6500.



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