G4-Case-Splitting-of-Minimum-Wages-into-HRA-and-Conveyance-Allowance-Appeal-heard-in-the-Supreme-Court-on-17th-August-2023-Karma-Global
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G4 Case – Splitting of Minimum Wages into HRA and Conveyance Allowance – Appeal heard in the Supreme Court on 17th August 2023

 

Contents News/Article Date: 17th   August   2023

Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952;           

Penalty under the Act: Whoever, for the purpose of avoiding any payment to be made by himself under this Act [the Scheme, the [Pension] Scheme] or the Insurance Scheme] or of enabling any other person to avoid such payment knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand rupees, or with both].

Applicable to which State:  Whole of India

Type:  Appeal heard in the Supreme Court on 17th August 2023

Pertains to: G4 case – Splitting of minimum wages into HRA and conveyance allowance

Relevance of this news:  Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Now Karma Global is also fully into labour compliances for nearly 18 years and is helping both establishments and workers for fulfilment of obligations as per the laws of the land.  It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis.  Recently, it has diversified into foreign shores as well, into countries like US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment and governance.

And in the current instance: The above case was listed today i.e. 17.08.2023 before the Hon’ble MS. JUSTICE HIMA KOHLI & HON’BLE MR. JUSTICE RAJESH BINDAL [CL.NO.: 104] & SLP (C) No. 032744 of 2011 / C.A. No. 009284 of 2013, and after hearing the arguments of the parties, the SLP was dismissed by the Hon’ble Supreme Court, and upheld the judgment dated 20.07.2011 passed by the Hon’ble Punjab and Haryana High Court in the LPA No. 1139 of 2011.

Subject: Appeal heard in the Supreme Court on 17th August 2023

 

Appended is the complete news item

 

Supreme Court – Splitting of Minimum Wages into Allowances Held to Be Justified

Today SLP of EPFO in G4 Securities regarding splitting of Minimum Wages dismissed by Supreme Court ……..

Non of the arguments in defence of EPFO by EPFO’s Lawyers were appreciated by the SC.

As far as Employers are concern, now it will an era of total confusion for few days and hence EPFO must come out with Circular sooner or later to clear the air.

CA No.9284/2013 filed by APFC Gurgaon vs G4 Security Services India Ltd., against the Punjab and Haryana High Court Division Bench Judgment and final order dated 20.07.2011 in LPA No.1139/2011 (O and M), holding that definition of ‘basic wages’ contained in section 2(b) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, read with section 6 of the said Act, excludes various allowances , particularly HRA, Conveyance Allowance and Washing Allowance from the definition and as such no PF dues are liable to be paid by the employer in the fund, has been dismissed by a two judge bench of HMJ Hima Kohli and HMJ Rajesh Bindal, today.

The Appellant was represented by ASG Mr. Banerjee while Dr. A.M. Singhi, Senior Advocate, Sh. Rakesh Khanna, Senior Advocate and Sh. Harvinder Singh, Advocate along with some other Advocates, including Sh. Gagan Gupta, AOR, represented the respondent G4S Security Services (India) Ltd.

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