𝐋𝐚𝐭𝐞𝐬𝐭 New-𝐏𝐅, 𝐄𝐒𝐈𝐂, HR related Judgement Update

𝐋𝐚𝐭𝐞𝐬𝐭 𝐔𝐩𝐝𝐚𝐭𝐞𝐬 𝐢𝐧 𝐏𝐅 & 𝐄𝐒𝐈𝐂, & HR related Judgement and update 🚨

Staying updated on the latest developments in Provident Fund (PF), Employees’ State Insurance Corporation (ESIC), and HR-related judgments is essential for both employers and employees to ensure compliance and informed decision-making. Here are some recent updates and significant judgments in these areas:

• Contractor is liable to pay accident compensation of an employee of the sub-contractor. (The New India Assurance Co. Ltd. v. Sivanantha Perumal (died) and Ors., 2024 LLR 1221 (Mad. HC))
• Trainees when working as regular employees will be treated as employees for the EPF Act. (The Managing Director, M/s. A. & F. Overseas Trade Limited vs. The Regional Provident Fund Commissioner & Ors., 2020 LLR 307 (Mad. HC))
• Principal employer is liable to pay wages to contractual workers if not paid by the contractor. (Dinesh Kumar and Ors. v. Central Public Works Department and Ors., 2024 LLR 51 (Del. HC))
• ‘Basic wages’ under the EPF Act can be split into exempted allowances. (Assistant Provident Fund Commissioner v. M/s G4S Security Services (India) Ltd. & Anr., 2023 LLR 1138 (SC))
• Remuneration and allowances paid to part time employees on monthly basis will be ‘basic wages’ under the EPF Act. (Central Board of Trustees, Employees Provident Fund Organisation v. M/s. Madura Micro Finance Pvt. Ltd. & Anr., 2024 LLR 1341 (Mad. HC))
• Contractual employees are entitled to maternity leave under Maternity Benefit Act however, honorarium for such leave may be denied if prescribed by specific departmental policies. (2025 LLR WEB 370 (MADHYA PRADESH HIGH COURT))
• Conveyance is not part of wages for ESI contributions. (Talema Electronic India Private Limited vs. Regional Director, ESI Corporation & Anr., 2022 LLR 591 (SC))
• Leave encashment is excluded from ‘basic wages’ under the EPF Act.(M/s. Nicks India (Tools) v. the Presiding Officer, Employees Provident Funds Appellate Tribunal, 2024 LLR 193 (P&H HC))
• Termination of service without knowledge of pregnancy by the employer not tenable. (Asia Pacific Institute of Management vs. Office of the Joint Labour Commissioner & Anr., 2022 LLR 994 (Del. HC))
• Damages for delayed deposit of EPF dues should be reduced in rare circumstances. (The Assistant Provident Fund Commissioner vs. The Presiding Officer, Employees Provident Fund Appellate Tribunal and Another, 2022 LLR 1048 (Mad. HC))
• The loan amount cannot be adjusted against gratuity.(Bidyut Baran Halder vs. The State of West Bengal and Others, 2018 LLR 32 (Cal. HC))
• Director of a company not personally liable for default in remitting ESI contributions.(Director in Charge ESI Corporation and others vs. M/s. Delkan Buildtech (P) Ltd., 2018 LLR 58 (Del. HC))
• Inter-state transfer clause in appointment letter is valid even when it finds no mention in standing orders. (M/s. Divgi Metal Wares Ltd. v. M/s. Divgi Metal Wares Employees Association & Anr., 2024 LLR 478 (SC))
• Weekly offs cannot be deducted while calculating the number of days an employee has worked. (Hem Singh Chouhan v. State of Rajasthan and Others, 2024 LLR 638 (Raj. HC))
• A workman is not a trainee when no training scheme existed. (Management of Reciphyarm Pharma Services Pvt. Ltd. vs. G. Vasanth Kumar and Others, 2020 LLR 744 (Karn. HC))
• Conveyance is not part of wages for ESI contributions. (Talema Electronic India Private Limited vs. Regional Director, ESI Corporation & Anr., 2022 LLR 591 (SC))
• According to a 2019 Supreme Court judgment, performance-based incentives and production bonuses that are directly linked to an employee’s output are not considered basic wages and are therefore not subject to provident fund (PF) contributions.
• Submission of monthly returns beyond the date of their submission is punishable under the EPF Act. (M/s. Braithwaite & Co. Ltd. v. S.K. Auddy, 2024 LLR 822 (Cal. HC))
• Nomination of wife would not deprive the mother of the deceased to share out of EPF dues. (Bharati and Others vs. Bebitai Punjabrao Atole and Others, 2021 LLR 217 (Bom. HC))
• The director having resigned prior to the raising of the industrial dispute cannot be prosecuted.(Anil Puri v. State of Haryana, 2023 LLR 1069 (P&H HC))
• The gratuity authority cannot condone the delay in filing an appeal beyond 120 days. (Chintadripet Co-Operative Society Ltd. v. Joint Commissioner of Labour for Gratuity and others, 2023 LLR 1086 (Mad. HC))
• Misappropriation by employees will merit loss of confidence. (Punjab National Bank v. Smt Sneh Aggarwal, 2023 LLR 1108 (Del. HC))
• Workers receiving wages, working under the control of contractor cannot be employees of the principal employer. (Subansiri Lowr H.E. Project Contract Basis Workers Union and Others vs. National Hydroelectric Power Corporation and Others, 2020 LLR 855 (Gau. HC).)
• A termination of a probationer, during probation, is not retrenchment hence not illegal.(Uttar Pradesh Samaj (Society) & Anr. vs. Ramesh Kumar Bawalia, 2020 LLR 822 (Del. HC).)
• Dismissal set aside since the absenteeism was beyond the control of the employee.(Smt. Vinita vs. Management of National Highways Authority of India, 2020 LLR 488 (Del. HC))
• Special incentive paid temporarily for bearing additional expenses during pandemic is not ‘wages’ under ESI Act. (Ms. Godambari Raturi v. Employees State Insurance Corporation Ltd. & Anr., 2025 LLR 3 (Del. HC))
• Unauthorised absence and not replying to management’s letters warrants termination. (Life Insurance Corporation of India & Ors. v. Om Parkash, 2025 LLR 1 (SC))
• Stealing property and disrupting work by calling union members are grave misconducts. (M/s. J.W. Marriott Juhu v. Nilesh Kanojia & Anr., 2025 LLR 51 (Bom. HC))
• Principle of ‘first come – last go’ is not applicable when employees were not similarly situated. (Krishi Upaj Mandi Samiti Pichhore & Ors. v. Mukesh Kumar Bhatt, 2025 LLR 7 (MP HC))
• The new contractor cannot be forced to engage workers of the previous contractor. (M/s. S.H. Enterprise v. The Indian Oil Corporation Ltd and 2 Ors., 2025 LLR 17 (Gau. HC))
• Punishment can be imposed even if misconduct was committed outside the establishment’s premises.(The Management of Sidhaarth Exports Pvt. Ltd. & Ors. v. Principal Secretary to Government, Labour and Employment (D1) Department & Ors., 2025 LLR 147 (Mad. HC))
• Premises carrying out consultancy services are covered under the ambit of the ESI Act. (Employees State Insurance Corporation and Anr. v. Northern India Motion Pictures Association and Ors., 2025 LLR 174 (P&H HC))
• Employee having officers senior to him but supervising work of two juniors would not be a ‘workman’ (Lenin Kumar Ray v. M/s. Express Publications (Madurai) Ltd., 2024 LLR 1299 (SC))
• Amount misappropriated by the employee cannot be recovered from gratuity. (Sukhinand Saket v. The State of Madhya Pradesh & Ors., 2024 LLR 1313 (MP HC))

Check out the latest changes in the ESIC portal that you need to know:

• Urgent Aadhaar Seeding for Insured Persons (IPs), ESIC Employees, and Pensioners is now mandatory! Ensure you’re compliant ASAP.
• New IP Search Feature on the Employer Portal! You can now search for an IP using their Account Number, Mobile Number, or UAN number—simplifying the process for employers.
• Press Brief released by Ministry of Labour and Employment through PIB on 21.11.2024. UAN activation and Aadhar seeding with bank account mandatory for availing benefits under ELI scheme.
• अगर कोई ESIC Member आधार KYC Link नहीं कर पा रहे तो ESIC hospital मे visit करके करवा सकते हो

𝐏𝐅 𝐖𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐚𝐥 𝐒𝐭𝐞𝐩-𝐛𝐲-𝐒𝐭𝐞𝐩 𝐆𝐮𝐢𝐝𝐞

𝐏𝐅 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧 – 𝐒𝐢𝐦𝐩𝐥𝐞 𝐄𝐱𝐚𝐦𝐩𝐥𝐞