Court Verdict on Reinstatement: Are PF, ESI, and PT Contributions Included in Back Wages?

Dear Seniors, In case of the court's verdict, the employee is reinstated with back wages. Does it include PF, ESI, and PT contributions?

Thank you.

In the case of Swastic Textile Engineers Pvt Ltd v. V.M. Rathod (2008), the Court has ruled out the same. Please advise.

I am yet to peek into the referred case, yet I would like to share the points below. Considering the statutes and the logic, the word "wages" by itself attracts statutory payments. "Back-wages" in no way means that the computation process would change. All statutory payments shall apply as per regular dispersal. Tax rules would apply as per the dispersal year (income for the particular year).

Could you please share any references or links related to the "Swastik case"?

Thanks,
Kavitha G

KVJ is right. Judgments differ according to the merits of the particular case. Generally, we go by the act or rule books.

Regards,
Pon

All employees are the same for the firm. Therefore, all employees have the right to take advantage of EPF and ESIC, so you have to deduct the EPF and ESIC from their back wages arrears.

Thanks,

Regards

Understanding Court-Awarded Back Wages

There are two ways a court can award back wages. Both situations are different, so read carefully.

1. Where the court has awarded back wages from the date of termination until the date of reinstatement. Here, the period is definite. In such a case, all statutory deductions will be made from the payment so calculated and made. The statutory deductions made will be deposited with the authorities concerned.

2. Where the court has awarded a specific amount of money as back wages. For example, the court awarded Employee Ramlal 2 lakh rupees as back wages. In such a case, a total of 2 lakh rupees will be paid to the employee, and no deductions will be made from the payment. These are generally cases where employees may have superannuated while the case proceeded or where the court awarded money as compensation.

Hope this clarifies the scenario. Feel free to revert in case of any doubt.