Supreme Court Ruling: Why Earned Leave Encashment Isn't Considered Wages for EPF

It is learnt that the Hon'ble Supreme Court in its judgment dated 12/03/2008 passed in Appeal (Civil) No. 1852 of 2004 is pleased to hold that the earned leave encashment is not wages as defined under Section 2(b) of the Employees Provident Fund and Misc. Provisions Act, 1952.

Dear friends,

A copy of the Supreme Court decision regarding this matter is attached for your information. It has been determined that Provident Fund (PF) is not applicable on leave encashment, and any payments already made can be adjusted against future liabilities.

Regards,
PC Agrawal

Dear HR friends,

I have been reading all those articles on the non-deduction of PF on PL encashment. Can anyone please confirm if companies have started implementing this practice of not deducting PF from PL encashment? If yes, kindly mention the company names and the effective date of implementation. Your assistance is appreciated as we need to make related decisions in my company.

Regards,
Chandrakant