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Setback for expatriates? Delhi HC upholds mandatory EPFO membership; what this means for foreign staff – The Times of India

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Setback for expatriates? Delhi HC upholds mandatory EPFO membership; what this means for foreign staff – The Times of India


The Delhi High Court on Tuesday ruled that expatriates working in Indian companies must become members of the Employees’ Provident Fund Organisation (EPFO) and contribute to the fund regardless of their income levels.The court upheld amendments to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, as well as the Centre’s 2008 and 2010 notifications that mandate international workers to contribute to the Employees’ Provident Fund (EPF).Under the ruling, international workers will be allowed to withdraw their full EPF balance only after retiring at or after the age of 58, or in cases of permanent and total incapacity. This is seen as a setback for expatriates who generally work in India for shorter periods of two to five years, reported ET. Indian workers, by comparison, are required to contribute if they earn below Rs 15,000 per month. Legal experts noted that many foreign employees have already left India, meaning employers will now have to bear their share of contributions.A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela held that the distinction between foreign and Indian employees was justified. The court accepted the government’s position that international workers form a separate group because they contribute only during their limited time in India, unlike domestic employees who contribute throughout their service.“The classification made was reasonable and it also has an object sought to be achieved that the purpose of mandating an employee to be a member of 1952 scheme was to provide social security,” the court said, as quoted by ET.The court also upheld EPFO communications directing SpiceJet and LG Electronics India to deposit provident fund and related dues for their international staff. It dismissed SpiceJet’s challenge to summons issued in 2012 requiring it to produce records for determining liabilities, and similarly rejected objections raised by LG Electronics.The Delhi High Court’s ruling aligns with a previous judgment of the Bombay High Court, while the Karnataka High Court has ruled to the contrary. Due to the conflicting views, the matter is expected to reach the Supreme Court for final interpretation. Both companies are assessing the implications and are likely to move to the Supreme Court, according to legal sources.Atul Sharma, counsel for SpiceJet, said, “The entire basis of amendment to the scheme is implementation to certain treaties with countries who have similar provision for social security. And under the Constitution of India, this amendment could not be implemented as treaties have not been ratified by Parliament.” He said the issue requires further consideration.The companies had argued that the classification between foreign and Indian employees was discriminatory.





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US economy grows at fastest pace in two years

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US economy grows at fastest pace in two years


The US economy picked up speed over the three months to September, as consumer spending jumped and exports increased.

The world’s largest economy expanded at an annual rate of 4.3%, up from 3.8% in the previous quarter. That was better than expected, and marked the strongest growth in two years.

The figures offer a clearer picture of the state of the US economy heading into the end of the year, after data collection had been delayed by the US government shutdown.

The report showed consumer spending rising by 3.5%, compared with 2.5% in the previous quarter.



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Fish and chip shop offers 100 free Christmas meals in Southampton

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Fish and chip shop offers 100 free Christmas meals in Southampton


“It’s just a way of us giving back to the community,” says a fish and chip shop owner, who is giving away 100 free meals on Christmas Eve.

Raj Khaira, from Southampton, has owned Top Catch fish and chips in Shirley for five years and says he wants to support lonely people in the area.

He says he feels lucky to have a big family but knows for some customers a conversation with a shopkeeper might be the only one they have some days.

He says the shop will give portions of sausage and chips to those in need as a way of “giving back to the people who haven’t got family around them and sometimes can’t afford a hot meal”.

Mr Khaira speaks about working in business all of his life and how much he enjoys meeting “different people every day, from different backgrounds”.

“I’ve done it since I was a young kid so it’s all I really know,” he says.

He adds that many of his customers are elderly and do not have connections over the festive period.

“Christmas for majority of us is probably going to be a joyful and busy day but for some people it’s probably going to be a quiet day,” he says.

After posting about the plans to donate on social media he received a lot of publicity and Mr Khaira is prepared to “probably do more than” 100 meals.

He says the shop has already organised a toy and present drop off to Southampton hospitals this December, with many of the donations coming from customers.

He says: “We’re only where we are as a busy shop because of our community and our lovely customers that come in and sometimes you’ve got to give back and I’m happy to do that.”

Looking back on some of the negative news reported in Shirley earlier this year with the rise in anti-social behaviour in the area, he admits he had suffered.

His shop window was smashed in the summer, but he says: “Christmas time lets us just try and forget that for a minute and just try and have a good time, and reflect back on the year and hopefully next year is going to be a better one.”



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Ryanair fined £224m in Italy over ‘abusive strategy’ with travel agencies

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Ryanair fined £224m in Italy over ‘abusive strategy’ with travel agencies



Ryanair has been fined 256 million euros (£224 million) by Italy’s competition watchdog for allegedly using an “abusive strategy” to hinder third-party travel agencies.

The regulator claimed in its ruling that the low-cost airline deliberately made it difficult for agencies to buy flights on its website, between April 2023 and at least April this year.

The Italian Competition Authority (AGCM) said: “Following a complex investigation, the authority found that Ryanair put in place an elaborate strategy affecting the ability of online and traditional travel agencies to purchase Ryanair flights on ryanair.com.

“In particular, the company’s strategy blocked, hindered or made such purchases more difficult… when combined with flights operated by other carriers and/or other tourism and insurance services.”

“These practices compromised the ability of agencies to purchase Ryanair flights and combine them with flights from other airlines and/or additional travel services, thereby reducing direct and indirect competition between agencies,” it added.

Ryanair said it would appeal the ruling and the fine, which it said was “unjustly levied”.

The Dublin-based carrier said: “Ryanair has campaigned for many years to offer consumers the lowest fares by booking directly on the ryanair.com website.

“This direct distribution model was ruled to ‘undoubtedly benefit consumers’ by the Milan Court, as recently as Jan 2024.”

Ryanair’s long-standing chief executive, Michael O’Leary, branded the ruling “legally unsound”.

He said: “This AGCM ruling is an affront to the precedent Milan court ruling, and also an affront to consumer protection and competition law.

“Ryanair has grown rapidly in Italy – and in many other markets across Europe – by always offering the lowest air fares in every single market in which we operate.

“This legally baseless AGCM Ruling, and its absurd 256 million euro fine, undermines consumer protection and competition law, and it will be overturned on appeal.”

It comes after Italy fined Ryanair 3 million euros (£2.6 million) in 2019 for its policy of charging passengers for cabin baggage, but the penalty was later overturned by an administrative court.



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