Pf Deduction 4m Leave Encashment - Doc Download

hello friends
in our company whr i ve joined 6 mnths bck there r strange deduction systems in practise. if i ask any 1 d reason (even d VP) ,i am always told dis is d rule ,bt nvr d logic is gvn 2 me, since dere actually is no logic behind. d little bit of education dat i ve tells me dere shldnt b any pf deduction from leave encshment which happens 2 b annual benifit.bt here we hav pf deduction 4m leave encashment. can some 1 plz xplain d logic 2 me!!!!! :(

Hi,
It would be better if you did not use the SMS language for postings in CHR.
Regards
Praveen

Your VP is right Legally, leave encash may attract PF Deduction
In practice many do not do this
I know some old companies practise this
Siva

Dear collegues
Please update your self before answering any quarry of any body.
The recent judgement of Madras High court has claerly spelled our that encashment leave will not attract EPF contributions Please refer the Labour law reporter December 2007 issue page number 1254
Thanks
L N Murty
Corporate Head- HR
GTN Industries Limited Hyderabad

Thanks for the update I am yet to see this judgement I will go through and make my comments
Thanks for the update
If it Madxras High Court Judgement, are they going on appeal??
Siva

Hi All !
The attachment may be useful for more details.
- Hiten

Thanks I went through the judgement
Now in my opinion, Tamilnadu will follow this Karnatka and Maharashtra will follow their HC order
More than anythingelse, HC here has observed that The Depardtment did not go on appeal against the order of Tribunal In State Transport Case.Hence this judgement This observation can definitely be questioned and the final verdict seems to be based on this observation. Inaction in one instance can not become law!!
This observation of High Court may be struck if this case goes to Supreme Court
Other observations of HC are worthing looking at but unfortunately Honourabale judges at the end have based their judgements on a single observation hat the Department chose not to appeal against the Order of Tribunal in State Transport case
They may go to SC definitely on this case and we may have to wait
Any information about their appealing? Anyone from Thiruarooran or Sanmar can throw some light on this
Siva

Hi All!
I am quoting one of my friends on this judgement of what he understands about the judgement. I dont have much knowledge about IR and legal aspects. The person who has quoted this is a learned and experienced person in IR matters. I am sharing the below mentioned for your reference, if it sounds correct or useful to you. I repeat, this is just sharing of views and not an authenticated information or text of any book.
"Indian adjudication system is a 3 tier system. First tier judgements (by Labour court, Industril Tribunal and National Tribunal) are subject to appeal in High courts and Highcourt's judgement could be challenged in Supremecourt, subject to certain applicable provisions.
Till a contradicting judgement is delivered by another highcourt and finally law is settled by Apex court, any judgement issued by any Highcourt, if sited during proceedings, is necessary to be considerd by all first tier courts while adjudicating any dispute."
- Hiten

Hi Hiten
You are right But here there three judgements
Two saying leave encahement attracts Pf (Karnataka and Maharashtra)
Hence in these two States all lower courts will be goverened by this judgement
In Tamilandu it is not to be considered for PF
All lower courts will follow this
Other States lower courets can go with any one of these judgements Till it is settlled by Apex Court,this is the situation
Siva

Hi,
In my previous company a buyer audit (third party auditor doing audit for buyer agent) took place, in which he raised the query and booked as a violation for not deducting PF for leave encashment and given dead line to deduct the same, after consulting with our legal consultant, he shown the same Madurai High court judge judgement copy, ie no need to deduct PF for leave encashment, we submitted the same copy during reaudit, auditor discussed with his senior and accepted the same.
PF deduction not applicable for leave encashments.
regards
satheesh