Hi HR colleagues! I would like to mention a situation where a company is deducting PF on the encashment amount of compensatory off for its factory employees. The company has an internal policy of encashment of compensatory off if not availed within the next six months.
Issue with PF Deduction on Compensatory Off
My argument is that, as per the Factory Act, it's mandatory to give a break after continuous working of 48 hours. By deducting PF on the encashment of compensatory off, the company itself claims that it has not been following the act.
Kindly shed light on your comments on the above situation. My urge is that we should not deduct the PF on the encashment of compensatory off and should only pay in cash.
Looking forward to an expert view on the above situation.
Issue with PF Deduction on Compensatory Off
My argument is that, as per the Factory Act, it's mandatory to give a break after continuous working of 48 hours. By deducting PF on the encashment of compensatory off, the company itself claims that it has not been following the act.
Kindly shed light on your comments on the above situation. My urge is that we should not deduct the PF on the encashment of compensatory off and should only pay in cash.
Looking forward to an expert view on the above situation.