2024 LLR WEB 42 (KARNATAKA HIGH COURT)
Overtime wages could not be paid in disguise of conveyance allowance to avoid payment of ESI contribution

EMPLOYEES STATE INSURANCE ACT, 1948 - Section 45A - Contribution on Overtime Wages - Respondents determined that Appellant is liable to pay amount towards contribution on overtime wages of its employees - ESI Court has rejected the application of Appellant - High Court Held, clear from Section 45A that if employer fails to furnish the documents required, the Corporation itself can determine the contribution payable on giving a reasonable opportunity to the employer - More than one year time was granted to the appellant which constitutes not only reasonable opportunity contemplated under Section 45A of the Act but substantial opportunity - A decision on the question of facts does not become a substantial question unless the same suffers from perversity - Burden was on Appellant to prove that the payments noted as conveyance charges were made to the employees towards their travel expenses - Remittances were not accounted for the contribution - Attendance registers for the relevant period... subscribe to read more..