When the employee is absent beyond his leave entitlement the same will be considered as leave without pay irrespective of reason for absence. How long it would take for the employee to report back?. Please find out the same. Say if it would take six months time frame then based on Employer choice, if Employer is willing to accommodate him then consider the period as " Break-in-service" which means employee will continue to be on payroll, Emp No, PF number will continue, however employee will not be eligible for any salary,leave accumulation or any other benefits. All statutory contribution has to be marked '0". For this Break-in-service please collect a request letter from the employee mentioning some dates(From__ To___)
Once the employee resumes back to office then you can make him eligible for salary and benefits from the effective date of reporting back to work.
On the other hand if it is pro longed illness where the employee is not sure of his resuming back to work, talk to the employee, explain him the situation how Employer find it difficult to manage in his absence etc and then collect resignation letter from him and close the file. Based on his years of service, you may collect some contribution from employees with employer contribution and hand over the cheque to him along with his Full and final Settlement.
Employer cannot keep open the position for long months /years as the employer is running business.
3rd September 2019 From India, Madras