Dear Sir,
In view of phase-wise lockdowns and relaxations, the appropriate governments are allowing industries to run with fewer manpower (on-rolls and contract) in Green/Orange Zones. If the local administration permits running the industry with 33% manpower, what is the legality of this matter as mentioned below:
1) Out of 1000 manpower, we can allow 333 manpower for duty. What about the payment of PF/ESI contributions for the remaining 637 manpower?
2) How many manpower should be shown for the generation of PF/ESI challan?
3) What is the employer's liability to pay salaries/wages for the 637 manpower who have not worked at the workplace or from home?
4) What is the impact of non-working man-days in lockdown when calculating Annual Leaves, Annual Bonus, and Gratuity?
Kindly clarify the above points.
Regards,
Krishna Kumar
Location: Hyderabad, India
work from home, esi challan, salary payment, annual leaves, Country-India, City-India-Hyderabad
From India, Hyderabad
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15In view of phase-wise lockdowns and relaxations, the appropriate governments are allowing industries to run with fewer manpower (on-rolls and contract) in Green/Orange Zones. If the local administration permits running the industry with 33% manpower, what is the legality of this matter as mentioned below:
1) Out of 1000 manpower, we can allow 333 manpower for duty. What about the payment of PF/ESI contributions for the remaining 637 manpower?
2) How many manpower should be shown for the generation of PF/ESI challan?
3) What is the employer's liability to pay salaries/wages for the 637 manpower who have not worked at the workplace or from home?
4) What is the impact of non-working man-days in lockdown when calculating Annual Leaves, Annual Bonus, and Gratuity?
Kindly clarify the above points.
Regards,
Krishna Kumar
Location: Hyderabad, India
work from home, esi challan, salary payment, annual leaves, Country-India, City-India-Hyderabad
From India, Hyderabad
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Payment of PF/ESI Contributions for Non-Working Manpower:
- According to labor laws in India, employers are required to contribute to PF/ESI for all eligible employees, whether they are actively working or not.
- Even if only 333 out of 1000 employees are working, PF/ESI contributions must be made for the entire workforce of 1000.
Generation of PF/ESI Challan:
- The PF/ESI challan should reflect the total workforce count, which in this case is 1000 employees.
- It should not be based on the reduced number of employees working during the lockdown.
Employer's Liability for Salary Payments:
- Employers are generally not obligated to pay salaries to employees who are not working, whether at the workplace or from home, unless there are specific agreements or government directives stating otherwise.
- In this scenario, the 637 non-working employees may not be entitled to full salaries unless there are exceptional circumstances or government orders requiring payment.
Impact on Annual Leaves, Annual Bonus, and Gratuity:
- Non-working man-days during the lockdown period may impact calculations for annual leaves, annual bonus, and gratuity.
- Employers may need to adjust these calculations based on actual working days to ensure accurate entitlements for employees.
For specific guidance tailored to your organization's situation, it is advisable to consult with legal experts or HR professionals well-versed in Indian labor laws and regulations.
From India, Gurugram
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- According to labor laws in India, employers are required to contribute to PF/ESI for all eligible employees, whether they are actively working or not.
- Even if only 333 out of 1000 employees are working, PF/ESI contributions must be made for the entire workforce of 1000.
Generation of PF/ESI Challan:
- The PF/ESI challan should reflect the total workforce count, which in this case is 1000 employees.
- It should not be based on the reduced number of employees working during the lockdown.
Employer's Liability for Salary Payments:
- Employers are generally not obligated to pay salaries to employees who are not working, whether at the workplace or from home, unless there are specific agreements or government directives stating otherwise.
- In this scenario, the 637 non-working employees may not be entitled to full salaries unless there are exceptional circumstances or government orders requiring payment.
Impact on Annual Leaves, Annual Bonus, and Gratuity:
- Non-working man-days during the lockdown period may impact calculations for annual leaves, annual bonus, and gratuity.
- Employers may need to adjust these calculations based on actual working days to ensure accurate entitlements for employees.
For specific guidance tailored to your organization's situation, it is advisable to consult with legal experts or HR professionals well-versed in Indian labor laws and regulations.
From India, Gurugram
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Some important Employment and labour law notifications during Covid 19 lockdown - consolidated b.jpg
Some important Employment and labour law notifications during Covid 19 lockdown - consolidated b.pdf