Dear Colleagues,
Could you please provide a copy of the Honorable High Court of Madras in W.P. No. 5424 of 2020 pronounced on 25.01.2023, wherein the Court held that in the case of higher pension as mentioned in the Honorable Supreme Court judgment dated 04.11.2022, the employer need not wait for any circular from the Provident Fund Department to exercise the joint option.
Public Sector Organizations' Response
Subsequently, many public sector organizations like SAI, IOC, etc., have issued a circular to their employees inviting joint option declarations.
Private Sector's Approach
Are establishments in the private sector also following this procedure, or are they waiting for the circular from the EPFO? Please suggest what to do in the absence of any guidelines from the EPFO. Would taking any proactive action be helpful, or would it be merely a waste of time? Experts, please comment on this issue of larger interest.
Regards,
Dr. Kamlesh Agrawal
Mumbai
From India, Delhi
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19Could you please provide a copy of the Honorable High Court of Madras in W.P. No. 5424 of 2020 pronounced on 25.01.2023, wherein the Court held that in the case of higher pension as mentioned in the Honorable Supreme Court judgment dated 04.11.2022, the employer need not wait for any circular from the Provident Fund Department to exercise the joint option.
Public Sector Organizations' Response
Subsequently, many public sector organizations like SAI, IOC, etc., have issued a circular to their employees inviting joint option declarations.
Private Sector's Approach
Are establishments in the private sector also following this procedure, or are they waiting for the circular from the EPFO? Please suggest what to do in the absence of any guidelines from the EPFO. Would taking any proactive action be helpful, or would it be merely a waste of time? Experts, please comment on this issue of larger interest.
Regards,
Dr. Kamlesh Agrawal
Mumbai
From India, Delhi
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Dear Dr. Kamlesh Agrawal,
Your question raises an important issue concerning the implementation of the Hon'ble High Court of Madras' decision in W.P. No 5424 of 2020.
According to the judgment, employers do not need to wait for a circular from the Provident Fund Department to exercise the joint option in case of a higher pension. This change has been implemented by many public sector organizations such as SAI, IOC, etc., which have issued their own circulars inviting joint option declaration.
As for the private sector, the response varies. Some private establishments are proactively following the public sector's lead and implementing the joint option, while others are waiting for specific guidelines from the EPFO.
In the absence of guidelines from the EPFO, you may consider the following steps:
1. ✅ Analyze the Judgment: Start by carefully studying the Madras High Court judgment. Understand the implications and how it applies to your organization.
2. 📝 Draft a Policy: Based on your understanding, draft a policy for your organization. Ensure it aligns with the judgment and covers all necessary aspects.
3. 📢 Communicate with Employees: Clearly communicate this policy to your employees. Explain the implications and what it means for them.
4. 🖋️ Invite Joint Option: Following the public sector's lead, invite joint option declarations from your employees.
5. 👥 Collaborate with Legal Team: Work closely with your legal team to ensure all procedures are followed and legal risks are mitigated.
Taking proactive action is not a waste of time. On the contrary, it can help align your organization with the latest legal changes and ensure the rights of your employees. However, it is always best to consult with your organization's legal team or a legal expert before implementing significant changes.
Remember, each organization is unique, and what works for one may not work for another. Therefore, it is crucial to consider your organization's specific requirements and circumstances when deciding the next steps.
I hope this helps!
📚 For further reading, you may refer to the Provident Funds Act, the Pension Fund Regulatory and Development Authority Act, and other relevant labor laws in India.
From India, Gurugram
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Your question raises an important issue concerning the implementation of the Hon'ble High Court of Madras' decision in W.P. No 5424 of 2020.
According to the judgment, employers do not need to wait for a circular from the Provident Fund Department to exercise the joint option in case of a higher pension. This change has been implemented by many public sector organizations such as SAI, IOC, etc., which have issued their own circulars inviting joint option declaration.
As for the private sector, the response varies. Some private establishments are proactively following the public sector's lead and implementing the joint option, while others are waiting for specific guidelines from the EPFO.
In the absence of guidelines from the EPFO, you may consider the following steps:
1. ✅ Analyze the Judgment: Start by carefully studying the Madras High Court judgment. Understand the implications and how it applies to your organization.
2. 📝 Draft a Policy: Based on your understanding, draft a policy for your organization. Ensure it aligns with the judgment and covers all necessary aspects.
3. 📢 Communicate with Employees: Clearly communicate this policy to your employees. Explain the implications and what it means for them.
4. 🖋️ Invite Joint Option: Following the public sector's lead, invite joint option declarations from your employees.
5. 👥 Collaborate with Legal Team: Work closely with your legal team to ensure all procedures are followed and legal risks are mitigated.
Taking proactive action is not a waste of time. On the contrary, it can help align your organization with the latest legal changes and ensure the rights of your employees. However, it is always best to consult with your organization's legal team or a legal expert before implementing significant changes.
Remember, each organization is unique, and what works for one may not work for another. Therefore, it is crucial to consider your organization's specific requirements and circumstances when deciding the next steps.
I hope this helps!
📚 For further reading, you may refer to the Provident Funds Act, the Pension Fund Regulatory and Development Authority Act, and other relevant labor laws in India.
From India, Gurugram
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Gratuity Madras High court Judgement[1].pd f