Dear Seniors, In case of court’s verdict employee is reinstated with back wages Does it constitute of PF,ESI,PT contribtion?
From India, Pune
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470From India, Pune
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Dear Sir, Swastic Textile Engineers Pvt Ltd V. V.M. Rathod ( 2008 ) the Court has rule out the same. Please advise.
From India, Pune
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From India, Pune
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I am yet to peek into the referred case, yet I would like to share the points below. Considering the statutes and the logic, the word "wages" by itself attracts statutory payments. "Back-wages" in no way means that the computation process would change. All statutory payments shall apply as per regular dispersal. Tax rules would apply as per the dispersal year (income for the particular year).
Could you please share any references or links related to the "Swastik case"?
Thanks,
Kavitha G
From India, Bangalore
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Could you please share any references or links related to the "Swastik case"?
Thanks,
Kavitha G
From India, Bangalore
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KVJ is right. Judgements differ according to its merits of the particular case. Generally, we go by Act or rule books. Pon
From India, Lucknow
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From India, Lucknow
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All employees are the same for the firm. Therefore, all employees have the right to take advantage of EPF and ESIC, so you have to deduct the EPF and ESIC from their back wages arrears.
Thanks,
Regards
From India, Bahadurgarh
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Thanks,
Regards
From India, Bahadurgarh
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Understanding Court-Awarded Back Wages
There are two ways a court can award back wages. Both situations are different, so read carefully.
1. Where the court has awarded back wages from the date of termination until the date of reinstatement. Here, the period is definite. In such a case, all statutory deductions will be made from the payment so calculated and made. The statutory deductions made will be deposited with the authorities concerned.
2. Where the court has awarded a specific amount of money as back wages. For example, the court awarded Employee Ramlal 2 lakh rupees as back wages. In such a case, a total of 2 lakh rupees will be paid to the employee, and no deductions will be made from the payment. These are generally cases where employees may have superannuated while the case proceeded or where the court awarded money as compensation.
Hope this clarifies the scenario. Feel free to revert in case of any doubt.
From India, New Delhi
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There are two ways a court can award back wages. Both situations are different, so read carefully.
1. Where the court has awarded back wages from the date of termination until the date of reinstatement. Here, the period is definite. In such a case, all statutory deductions will be made from the payment so calculated and made. The statutory deductions made will be deposited with the authorities concerned.
2. Where the court has awarded a specific amount of money as back wages. For example, the court awarded Employee Ramlal 2 lakh rupees as back wages. In such a case, a total of 2 lakh rupees will be paid to the employee, and no deductions will be made from the payment. These are generally cases where employees may have superannuated while the case proceeded or where the court awarded money as compensation.
Hope this clarifies the scenario. Feel free to revert in case of any doubt.
From India, New Delhi
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Payments not to be treated as wages under esi.doc
Supreme court judgment on min wages (AIRFREIGHT).pd f