Indian iPhone Factory shutdown: Women led protest against worm-filled food
Indian iPhone Factory shutdown: Women led protest against worm-filled food
Foxconn, a key supplier for the likes of Apple and Xiaomi, has been in the midst of a major protest led by women workers of its plant near Chennai in India.
The workforce of the plant protested against several lapses in the living standards, including crowded dormitories, toilets without running water and inedible food infested with worms.
The protest that started on December 17 led to the shutdown of the plant, post which Foxconn has apologised for lapses in the living standards in the factory.
The company has now promised to implement changes to both management as well as health services within the plant. The factory will reopen once these improvements are in place. Workers of the factory have since spoken to publications about the living conditions within the Foxconn plant that led to the protest.
Read MoreIndians with MBAs compete for jobs as street sweepers as unemployment bites…
Thousands of highly educated Indians — many with business or engineering degrees interviewed for a handful of menial Government jobs in central Madhya Pradesh State at the weekend, amid a worsening pandemic crisis in the country.
More than 11,000 hopefuls gathered outside Gwalior District Court to compete for 15 positions as security guards, drivers, street sweepers and office helpers.
The minimum level of education required for the positions was high school level.
But officials were shocked by graduates and postgraduates crowding outside the court complex to appear for the preliminary interview for the vacancies, which offered monthly salaries of between 5,000 rupees ($66) and 10,000 rupees ($122).
Jitendra Maurya, a Law Graduate, said he had applied to become a driver. “I am also preparing for the Judge’s exam but the situation is such that sometimes there is no money to buy books,” he told a local news channel.
Read MoreIndian Federation of App-based Transport Workers (IFAT).
App-based workers federation serves writ petition to Zomato, Swiggy, Ola, Uber India Food aggregator Zomato informed stock exchanges on Wednesday about a writ petition in the nature of public interest litigation (PIL) before the Supreme Court of India from the Indian Federation of App-based Transport Workers (IFAT).
The IFAT, formed in September 2019, is a workers’ organisation representing app-based transport and delivery workers. Its petition names Zomato, Bundl Technologies (Swiggy), ANI Technologies (Ola), and UberIndia Systems, as respondents, apart from Central Government Ministries, according to the exchange filing.
The writ petition seeks the Supreme Court’s intervention to direct the Government to “notify or recognize app based workers as ‘workers’ or alternatively be recognised as ‘unorganised workers’ or ‘wage workers’ under various labour or social security legislations”, Zomato informed the stock markets.
Read MoreLooking back at 2021: Digital impact on HR systems
HR managers have started to think ahead and plan systematically for 2022
The year 2020 sounded a wake-up call to businesses—big and small—that digital transformation is no longer a wait and watch phenomenon but has become an imperative for survival and reinventing themselves. While functions that are customer facing or are directly supporting markets were prioritized for digital investments, because of the need for remote working, HR function also had to reimagine their processes.
Post lockdown periods, with uncertainties around new virus variants and their impact on work, many organizations continue with remote working or with the hybrid model of physical and virtual working. Several businesses which have zoomed during the lockdown and post lockdown periods, have also been experiencing exodus of employees and need to hire new talent and also upgrade existing employees quickly. Prolonged periods of working remotely have raised concerns of employee wellbeing and the challenges around sustaining employee engagement efforts. Cyber-security and protection of employee data have become significant areas of focus for HR managers, and not just IT managers.
Starting with the call to digital action in the year 2020, rushing to put in place temporary inevitable steps, HR managers have started to think ahead and plan systematically for 2022 to rejuvenate the HR function to cope with the new realities of business functioning. The hybrid mode of working would require robust digital applications to capture attendance and other activities. There would be a greater reliance on cloud based systems for day-to-day administration work, learning and development and recruitment and onboarding of employees. In this context, it is also important to examine the multitude of applications created over a period of time and how to make unified HR systems, making them more effective and design a seamless process for both HR teams as well as for the employees.
During the pandemic those with disabilities as well as a large number of women had lost their jobs. Enabling talent from these segments to become part of the workforce would call for imaginative use of technology for search and recruiting process as well as for providing them with appropriate tools for successful work outcomes. Recruitment and retention of employees would largely depend upon their experience through interactions which are likely to be significantly more with technology applications in the coming years. Therefore personalizing employee experience at all stages of employee lifecycle through the blend of technology and human interfaces has to be an ongoing initiative of HR function.
Managers would required to be coached on new techniques to manage hybrid teams for high performance. AI will become the constant companion for HR managers specially for screening of applications and automated chatbots would have to be trained on a regular basis to handle the routine questions from candidates. In addition to adopting and implementing cyber security practices, adhering to compliances and putting in place controls for access and storage of data pertaining to employees, educating employees on cyber security practices and ensuring there is a frequent orientation on new practices would be an ongoing mandate for HR teams. With businesses recognizing the importance of data backed decisions and actions, HR managers would be expected to create the expertise in data analytics in every function. HR function too would have to build new real time dashboards on people productivity and performance and new measures linking with business outcomes would be required to be introduced.
The experience of the last two years and the recognition of the importance of digital in HR function should pave the way for the next big leap of faith for the HR function.
By: Uma Ganesh
The writer is chairperson, Global Talent Track, a corporate training solutions company
EPFO credits 8.50% interest in 23.44 crore account holders for FY21
In October, EPFO announced the declaration of the rate of interest for the Employees’ Provident Fund Members accounts for the year 2020-21.
Employees’ Provident Fund Organisation (EPFO) has credited an interest rate of 8.50 per cent in 23.44 crore account holders for the financial year (FY) 2020-21, the retirement fund body announced today on its official Twitter handle.
“23.34 crore accounts have been credited with an interest of 8.50% for the FY 2020-21, ” EPFO said in a tweet.
In October, EPFO announced the declaration of the rate of interest for the Employees’ Provident Fund Members accounts for the year 2020-21.
“The Ministry of Labour and Employment has conveyed the approval of the central government under para 60(1) of Employees’ Provident Fund Scheme, 1952 to credit interest at 8.50 per cent for the year 2020-21 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952,” EPFO had said in its official circular.
‘Madam if you want leave, come and meet me alone’; Chattisgarh HC held it not to be a sexually coloured remark; Offence under IPC and SC ST Act not made out
Chhattisgarh High Court, Narendra Kumar Vyas, J., quashed the FIR registered against the petitioner by Respondent 4 at Women Police Station, Bilaspur (C.G.) for commission of offence punishable under Section 354(A) IPC and Section 3 (1)(xii) of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989.
The facts of the prosecution are such that the petitioner is working as an Assistant Professor in D.P. Vipra College, Bilaspur, filed present writ petition under Article 226 of the Constitution of India for quashing FIR registered against him on the basis of complaint made by respondent 4 at Women Police Station, Bilaspur (C.G.) for commission of offence punishable under Section 354 (A) of Penal Code, 1860 i.e. IPC & Section 3(1)(xii) of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act i.e. “the Act, 1989”. The petitioner also highlighted that a criminal case was registered the petitioner against respondent 4 along with other 33 teaching staff having committed offence of unlawful assembly , criminal intimidation for which Judicial Magistrate 1st class convicted the accused persons including respondent 4 and imposed fine s well.
Counsel for the petitioner Mr. B P Sharma submitted that being aggrieved by the conviction order, respondent 4 lodged FIR as a counterblast to the criminal proceedings. It was further submitted that the remarks made by petitioner was “Madam yadi aap chutti chahti hain toh mujhe akele mein aakar milein” which cannot be termed as sexually coloured remarks. Hence, no ingredient of offence under Section 354 (A) IPC is made out and the offence under the Act of 1989 was also prima facie not made out.
Counsel for the respondent 4 Mr. Manoj Paranjape submitted that the alleged statement made by the complainant/respondent 4 feel humiliated and caused grievance as such statement felt as an attack to the dignity and modesty of the complainant. It was submitted that it is the feeling perceived by the victim that is of paramount consideration and not what the accused states.
The Court observed that from bare perusal of Section 3(1) (xii) of the Act of 1989, statement of the complainant and other witnesses, it cannot be prima facie established the offence has been committed with racial prejudice and that the petitioner was ever in a position to exploit respondent 4 sexually as petitioner and respondent 4 are working as Assistant Professors in the same college, therefore, it cannot be presumed that the petitioner was in a position to dominate the respondent 4 or to command or control her.
The Court observed that the contents of the complaint cannot be inferred as a sexual coloured remark against respondent 4. The remarks do not fall within the ambit of sexual harassment in order to prosecute the petitioner for commission of offence under Section 354 (A) (iv) IPC.
The Court held
“since the criminal case is going on, therefore it is counter blast on the part of respondent no. 4, as such; adjudication of the proceeding against the petitioner for commission of offence under Section 354 (A) of IPC will be nothing but an abuse.”
The Court held “FIR No. 0036 dated 25.06.2018 registered against the petitioner by Respondent No. 4 at Women Police Station, Bilaspur (C.G.) for commission of offence punishable under Section 354(A) IPC and Section 3 (1)(xii) of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, deserves to be and is hereby quashed.” [Dr. Manish Tiwari v. State of Chhattisgarh, WPCR No. 363 of 2018, decided on 01-11-2021]
Read MoreSale Deed Executed Without Payment Of Price Is Void; Has No Legal Effect: Supreme Court
The Supreme Court observed that the payment of price is an essential part of a sale.
If a sale deed in respect of an immovable property is executed without payment of price and if it does not provide for the payment of price at a future date, it is not a sale at all in the eyes of law, the bench comprising Justices Ajay Rastogi and Abhay S. Oka said.
The court also observed that a document which is void need not be challenged by claiming a declaration as the said plea can be set up and proved even in collateral proceedings.
In this case, one Kewal Krishan executed a power of attorney in favour of Sudarshan Kumar on 28th March 1980. Acting on the basis of the said power of attorney, two sale deeds were executed by Sudarshan Kumar on 10th April 1981. The first sale deed was executed by him by which he purported to sell a part of the suit properties to his minor sons. The sale consideration was shown as Rs.5,500/-. The other sale deed was executed by Sudarshan Kumar in favour of his wife in respect of remaining part of the suit properties. The consideration shown in the sale deed was of Rs.6,875/-.
Kewal Krishan filed two separate suits. One was against Sudarshan Kumar and his two sons and the other one was against Sudarshan Kumar and his wife. Both the suits, as originally filed, were for injunction restraining the defendants from interfering with his possession and from alienating his share in the suit properties. In the alternative, a prayer was made for passing a decree for possession. The Trial Court dismissed the suits filed by Kewal Krishan. In appeal, the District Court partly decreed the suits. The High Court held that the suits for declaration of invalidity of the sale deeds were barred by limitation as the said prayers were belatedly incorporated on 23rd November 1985.
In appeal, it was contended that there was no evidence adduced to show that the purchasers under the sale deeds dated 10th April 1981 had paid consideration to Sudarshan Kumar, and that the minor sons of Sudarshan Kumar and his wife had no source of earning
Referring to Section 54 of the Transfer of Property Act, 1882, the bench observed:
Hence, a sale of an immovable property has to be for a price. The price may be payable in future. It may be partly paid and the remaining part can be made payable in future. The payment of price is an essential part of a sale covered by section 54 of the TP Act. If a sale deed in respect of an immovable property is executed without payment of price and if it does not provide for the payment of price at a future date, it is not a sale at all in the eyes of law. It is of no legal effect. Therefore, such a sale will be void. It will not effect the transfer of the immovable property.
The court noted that no evidence was adduced by Sudarshan Kumar about the payment of the price mentioned in the sale deeds as well as the earning capacity at the relevant time of his wife and minor sons. Hence, the sale deeds will have to be held as void being executed without consideration, the court added. On the issue of limitation, the bench said:
“It was not necessary for the appellant to specifically claim a declaration as regards the sale deeds by way of amendment to the plaint. The reason being that there were specific pleadings in the plaints as originally filed that the sale deeds were void. A document which is void need not be challenged by claiming a declaration as the said plea can be set up and proved even in collateral proceedings. Hence, the issue of bar of limitation of the prayers for declaration incorporated by way of an amendment does not arise at all.”
By Dayanand Mangaonkar
Read MoreSupreme Court Latest Update on Employee Transfer
Case Name: Caparo Engineering India Ltd. V. Ummed Singh Lodhi And Anr.| Civil Appeal Nos.5829-5830 Of 2021
Citation: LL 2021 SC 625
Coram: Justices MR Shah and AS Bopanna
The Supreme Court has observed that Fourth Schedule and Section 9A of the Industrial Disputes Act, 1947 would be attracted if transfer of workmen results in change of service conditions and nature of work.
Section 9A of the ID Act says that employer should give a notice to employee regarding any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule,
The bench of Justices MR Shah and AS Bopanna in the present matter was considering civil appeals assailing Madhya Pradesh High Court’s judgement of upholding Labour Court’s award in which the Court declared the order of transfer of employees as illegal and void(Caparo Engineering India Ltd. V. Ummed Singh Lodhi And Anr).
While dismissing the appeal with costs quantified at Rs 25,000 the bench observed that,
“Order of transfer dated 13.01.2015 transferring the respective workman from Dewas to Chopanki, which is at about 900 Kms. away is in violation of Section 9A read with Fourth Schedule of the Industrial Disputes Act and is arbitrary, mala fide and victimization. As observed above, by such a transfer, their status as “workman” would be changed to that of “supervisor”. By such a change after their transfer to Chopanki and after they work as supervisor they will be deprived of the benefits.”
Factual Background:
Workmen were employed and working in Dewas factory of Caparo Engineering India Ltd. (“appellant”). Vide order dated January 13, 2015 all of them were transferred to Chopanki, District Alwar which is 900 kms away from Dewas. On failure of conciliation proceedings, the workmen through their Union raised the industrial dispute before competent authority.
In their claim before the Labour Court, they argued that their transfer was done malafidely with the intention to reduce the number of workmen in the Dewas factory. Terming the same as amounting to illegal change u/s 9A of the Act they argued that the employer pressurised the workmen to resign and on refusal, the employer transferred them without any justifiable reason to Chopanki at Rajasthan, which is 900 Kms. away. It was also their contention that such transfer would change the nature of work as they manufacture precision pipes at Dewas whereas at Chopanki the work was of manufacturing nut and bolt.
In their reply before the Labour Court, the employer while specifically denying the fact of transferring the employees for reducing the number of workmen at Dewas submitted that no unfair labour practice was adopted and compliance of Section 9A of the I.D. Act was not necessary. The employer further averred that no notice u/s 9A of the ID Act was required since there was continuous reduction in production at Dewas and the staff had become surplus which was not required and, therefore, to continue the employment of the concerned workmen, they had been transferred as per their service conditions.
The Labour Court found that the employer could not prove that there was continuous reduction of production at Dewas factory and that the staff had proportionately become surplus. It further found that the workmen – nine in numbers were transferred from Dewas with the intention to reduce the number of persons employed at Dewas and such an act was covered by Clause 11 of Schedule 4 of the I.D. Act and since no notice of change was given, the transfer orders were in violation of Section 9A of the I.D. Act.
The Labour Court also specifically found on appreciation of evidence that transfer would change the nature of work since the workmen were employed as labourers at Dewas and on transfer at Chopanki, they would be working as Supervisor. Consequently, the Labour Court found the order of transfer as null and void and set aside the same.
Aggrieved and dissatisfied with the award and judgement passed by the Labour Court, the management approached the Single Judge of the High Court under Article 227 of the Constitution of India. Since the Single Judge dismissed the writ, the employers approached the Division Bench of the High Court. Observing that the writ petitions under Article 227 of the Constitution of India were not maintainable, the Division Bench dismissed the writ appeals.
Aggrieved, the appellant approached the Top Court.
Submission of Counsels
Submission On Appellant’s Behalf (Management/Employer)
Relying on Ashok K. Jha and Ors. Vs. Garden Silk Mills Limited and Anr., (2009) 10 SCC 584 Senior Advocate Jaideep Gupta has submitted that in order to determine whether a petition is under Article 226 or under Article 227 of the Constitution, what is to be looked at is the nature of jurisdiction invoked and the relief sought therein. It was also his contention that neither the provision cited in the cause title nor the provision mentioned by the learned Single Judge while exercising his power were determinative of the true nature of the application and order thereon.
Senior Counsel further argued that the High Court and Labour Court materially erred in holding that order of transfer amounted to change of terms and conditions of service requiring a notice under Section 9A and in the absence thereof, the said order was liable to be set aside. In this context he also contended that such an order of transfer did not bring about a change in the terms and conditions of service within the meaning of Section 9A read with Schedule 4 thereof.
Referring to the Top Court’s judgments in Hindustan Lever Ltd. Vs. Ram Mohan Ray and Ors., (1973) 4 SCC 141; Harmohinder Singh Vs. Kharga Canteen, Ambala Cantt., (2001) 5 SCC 540 and the decision of the Bombay High Court in the case of Associated Cement Companies Ltd. Vs. Associated Cement Staff Union, 2009 SCC Online Bom 2132, he also submitted that Clause 11 of Schedule 4 was not at all relevant when considering transfer orders. It was also his contention that the purpose of the transfer order was not to bring about a reduction in the establishment in question. It was also submitted that to bring a case within the change of terms and conditions of service within the meaning of Section 9A, it was necessary for the workmen to demonstrate that they have been adversely affected by the reduction.
Submission On Respondent’s Behalf (Workmen)
Representing the workment, Advocate Niraj Sharma submitted that the transfer order dated January 13, 2015 transferring transferring the respective workmen form Dewas to Chopanki and that too at the fag end of their service career amounted to an arbitrary and unfair labour practice by creating a situation in which the workmen were left with no other option except to leave their employment. It was also counsel’s contention that it was in fact a way to retrench the workmen without following the mandatory provisions of law.
He also contended that sudden transfer of the workmen to a different State and that too at a distance of about 900 Kms. from their place would cause great hardship as the place where they were transferred had no educational and medical facilities, their school going children and old aged parents were to be disturbed and uprooted and the place where they were transferred had no residential area within 40-50 Kms. form the plant with no means of transport.
Supreme Court’s Analysis
Considering the evidence on record the bench observed that, “It emerge from the evidence on record that the respective respondents – employees were employed at Dewas and working at Dewas for more than 25 to 30 years; all of them came to be transferred suddenly from Dewas to Chopanki, which is at a distance of 900 Kms. from Dewas; they came to be transferred at the fag end of their service career; that the place where they were transferred had no educational and medical facilities and that the place where they were transferred had no residential area within 40-50 Kms. from the plant with no means of transport. It also emerges that the number of workers at Dewas factory has been reduced by nine by transferring the workmen to Chopanki.”
The bench in the judgement authored by Justice MR Shah also considered that the respondents were workmen u/s 2(s) of the Act and therefore would have a protection under the provisions of the Act and that because of their transfer to Chopanki they will have to work in the capacity of supervisor and would therefore be deprived of the provisions of the Act.
Observing that the appellant’s submission that transfer was a part of the service condition and that section 9A would not be applicable has no substance, the bench noted that, ” The question is not about the transfer only, the question is about the consequences of transfer. In the present case, the nature of work/service conditions would be changed and the consequences of transfer would result in the change of service conditions and the reduction of employees at Dewas factory, for which the Fourth Schedule and Section 9A shall be attracted.”
The bench further said that it was established and proved that the employees were ‘workmen’ within the definition of Section 2(s) of the Act and, therefore, were entitled to the protection under the provisions of the Act.
Read MoreLabour court terms closure of Hyatt Regency hotel as illegal
Following the shutdown of Hotel Hyatt Regency on June 7, 200-odd employees of the hotel approached the industrial court and labour commissioner seeking protection from termination.
Hyatt is an American hospitality company that manages and franchises luxury and business hotels. It is managing the Mumbai property on a contract basis on behalf of Asian Hotels (West).
A labour court has ruled that the decision of Hotel Hyatt Regency to halt its operations in Mumbai is “illegal” under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices (MRTU and PULP) Act, 1971.
“It is held and declared that respondents (Hotel Hyatt Regency) have engaged into unfair labour practice under Item 6 of Schedule II and Item 9and 10 of Schedule IV of MRTU and PULP Act 1971. Respondents are directed to cease and desist from the same,” said an order passed by SV Suryawanshi, member of the Industrial Court in Mumbai, on September 30.
On June 7, the management of the five-star hotel said the hotel will remain closed till further notice, since its parent Asian Hotels (West) Ltd is not making payments for its salaries and operations. Following the shutdown, 200-odd employees of the hotel approached the industrial court and labour commissioner seeking protection from termination.
These employees of the hotel are part of Bhartiya Kamgar Sena, a workers’ union affiliated with the Shiv Sena. Union secretary Manoj Dhumal said, “The labour court has ruled in favour of the employees and asked the hotel to pay its employees.”
The labour court has directed Asian Hotels (West) to “provide work and/or wages to the concerned workers so far as they are in the employment including arrears of earned wages from time to time”. It has also “restrained” Hyatt Regency and Asian Hotels from disposing of or creating third interest on the properties owned by them.
Hyatt is an American hospitality company that manages and franchises luxury and business hotels. It is managing the Mumbai property on a contract basis on behalf of Asian Hotels (West).
After the shutdown of its hotel in June, Asian Hotel in a statement said that the hotel management had to make the unprecedented move of temporarily shutting down Hyatt Regency in Mumbai because Yes Bank Ltd, with which it maintains an account, has blocked that account and held back all funds after a default in loan repayment. Asian Hotel had said it defaulted on repayment due to a severe liquidity crunch since the beginning of the Covid-19 pandemic.
Earlier this week, The Indian Express reported that Yes Bank has taken possession of Hotel Hyatt Regency building after Asian Hotels defaulted on loan repayment of Rs 267 crore.
Asian Hotels has come under fire since the closure of operations at Hyatt Regency on June 7. Since then, all independent directors on the board of the company have quit. In September, the auditor of the company resigned, according to a notification by the company to the stock exchanges
By Dayanand Mangaonkar
Read MoreVarious reasons for delay in crediting interest to your EPF account every year
The central board of trustees meets in March to announce the interest rate for the financial year, and the proposal is then forwarded to the finance ministry for ratification.
The Finance Ministry has ratified the interest rate of 8.5 percent, which Central Board of PF Trustees (CBT of EPFO) had approved in March, for the financial year 2020-21.
Though the announcement was made before Diwali, it could be a while – two weeks as per reports – for the interest amount to be credited to your EPF account. A Diwali ‘gift’ ought to make people happy, but the fact is that the delay tends to cause heartburn amongst employees year after year. A cursory glance at the timeline of EPFO’s twitter handle (@socialepfo) shows multiple complaints on the delay every year. In times of advanced fintech tools and automated pay-outs, it is surprising that the interest for the previous financial year is credited later than half way into the current financial year.
The main reason for delay is due to inter-ministerial co-ordination and administrative process……
A long-winding bureaucratic process and time-consuming paperwork. The central board of trustees meets in March to announce the interest rate for the financial year, and the proposal is then forwarded to the finance ministry for ratification. Once the approval comes through, the labour ministry notifies the interest rate and the process of crediting interest into accounts begins. “The lag in ratification is because of the delay on the part of the labour ministry in forwarding the required documents. The interest credit to PF accounts is a big cash flow for the central government, and the finance ministry holds the arrangement for validating the submitted data, allocating the required funds and other procedural arrangements before crediting the interest to the members’ account.”
Now, interest credit for India Post small savings accounts – savings, senior citizens’ saving schemes, Sukanya Samriddhi account, public provident fund and so on – is not such a cumbersome process.
The Finance Ministry approves interest rates every year for each quarter, which is credited to accounts as scheduled, without any delay.
But the delay in the case of EPF interest is a recurring feature.
“There is not much information available on the reason for the delay. One possible reason is the due diligence that the Finance Ministry may require from Labour Ministry given that the PF rate is much higher than other savings schemes’ rates.”
Many employees have been expressing their displeasure at the delay and when questioned, a standard reply is sent to the members stating “Whenever the interest will be credited, it will be accumulated and paid in full. There would be no loss of interest. Please maintain patience.”
“In today’s day and age, ideally, there should not be any delay. Even in the banking system, there are crores of accounts, but all of them receive interest credit on time. So, even EPFO should be able to calculate interest on a regular basis and facilitate auto-credit.”
“If all other entities are able to manage seamless processing, there is no reason why EPFO cannot. There might be historical reasons for the delays, but with the current pace of technological advancements, the entire chain of approvals should be completed without any lag.” He believes that at the best, there can be a lag of one month from the interest rate announcement for account finalisation. “The co-ordination between the two ministries and EPFO’s manual interest credit are responsible for the delays. The ratification by the finance ministry and the administrative process of crediting interest to employees’ accounts take time.”
Process overhaul needed to eliminate delays…….
Transparency and auto-transfers can ease the pain for employees. In my considered opinion a standard rate of interest should be declared at the beginning of the financial year. Interest should be credited to individual EPFO accounts at the end of every quarter, just like Listed Companies and final interest can be declared by the EPFO in consultation with the MoF at the end of the year. Also, there is a need for greater transparency by way of digitising the calculation of interest and auto-credit of interest to the members’ accounts.” I strongly feel that with Aadhaar-seeding and PAN linkage, a key leg of digitisation, is already completed and it is time to move to auto-credit of interest like it is done in case of Bank Accounts.
Even the Code on Social Security is silent on this issue exhibiting unwillingness of the concern Ministries in this regard.
Read More