Dear Team, If a factory giving layoff for 25 days, is it mandatory to deduct ESI/PF for the employees for the layoff period?
From India, Tiruppur
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From India, Tiruppur
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Dear Ranjithjashi, layoff compensation is not considered basic wages as defined in the PF Act. A workman receives it when not working, meaning it is not earned while on duty. Therefore, PF does not apply to layoff compensation.
However, ESI does apply to layoffs as per section 2(22) of the ESI Act. It is explicitly included.
Thank you.
From India, Mumbai
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191However, ESI does apply to layoffs as per section 2(22) of the ESI Act. It is explicitly included.
Thank you.
From India, Mumbai
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