Dear sir, If No one employee has worked in April 2020 due to lockdown and No one employee gets salary for the month of April 2020, Shall we file Nil Return (Nil Contribution) on particular month (i.e. April 2020) in PF & ESI until lockdown completes.
Please advise sir.
From India, Hyderabad
32Please advise sir.
From India, Hyderabad
Employer has to pay wages & salary as per the Govt guidelines for payment during lock down period. When there is wage component how PF contribution would be Zero. If you are not paying any salary for the lock down period then PF & ESI contribution would be Zero.
From India, Mumbai
From India, Mumbai
It is true that employer has to pay full salary during lockdown period. But if the employer fails to generate revenue how can he pay salary? The instruction given by the government following the provisions of Disaster Management Act has been challenged in the Supreme Court and the court has asked the government why the direction asking the private employers to pay full wages should not be stayed. In effect, the court is convinced that the government cannot direct the employers to pay full wages during lockdown period. True, if the employers don't pay, the very objective of the lockdown, ie, making the people stay at home, would be defeated. Please follow the link
Madhu T K: Liability of employers to pay salary during COVID 19 lockdown period
From India, Kannur
Madhu T K: Liability of employers to pay salary during COVID 19 lockdown period
From India, Kannur
No of days or which salary has been paid is the days worked to be shown in ESI. If you have paid salary for the entire month, ie, 31 days put that. In the PF records the NCP refers to non contributory days and if yo have paid full salary, obviously, it should be zero.
The lock down period salary shall be taken as salary paid during any leave days. Naturally, if a person is on leave with pay, what you will do in the ESI and PF records shall apply in locked down cases also. ESI or PF authorities are not concerned about your leave policies but they are concerned only about days for which wages have been paid. If paid, take it as days worked or paid leave days and if not paid, it it as unpaid leave days.
From India, Kannur
The lock down period salary shall be taken as salary paid during any leave days. Naturally, if a person is on leave with pay, what you will do in the ESI and PF records shall apply in locked down cases also. ESI or PF authorities are not concerned about your leave policies but they are concerned only about days for which wages have been paid. If paid, take it as days worked or paid leave days and if not paid, it it as unpaid leave days.
From India, Kannur
Even if you have paid 40% or 50%, you can make it full attendance with 40% or 50%, as the case may be, as salary paid. Neither ESI nor EPF can object why you have paid lesser pay. Putting full attendance will make the employees to qualify for various other benefits which are based on attendance. The lockdown period being a period allowed as a special leave other than regular CL or PL, the value of the leave days can be decided by the employer. It can be 100% or 40% or 50%. The EPF authorities cannot enforce section 12 of the EPF & MP Act which says that employer should ot reduce the salary of the employees. The issue is known to every one and even the Supreme Court has said that the salary part during lockdown period should be decided by the employer. If you have decided to pay 40% only, that is final
From India, Kannur
From India, Kannur
Dear Friends,
I would like to add as under:
Whatever you decided to pay during lock-down, I suggest you to have it in writing in the form of memorandum of settlement, get is registered and submit a copy of it to H'ble SC. This is as per the guidelines / directives given by H'ble SC in its interim order in Ficus Pax and others.
When you decide to pay for the days not worked by employees during lock-down, it should not to be treated as wages or salary. Wages or salary is due for working days or paid leave days. In the present circumstances you are paying the amount against no work done by the employees as per the MHA directives. When it is not treated as wages or salary and treated as Covid Ex-gratia pay, PF will not attract on it but ESI will attract if you pay it on monthly basis or bi-monthly basis.
In case of wage / salary against work done during lock-down and thereafter, if you decide to reduce the quantum of it, in this case also I advise to have memorandum of settlement duly registered as per the guidelines / directives given by H'ble SC. Whatever amount you decide here will be treated as wage / salary and on it both PF and ESI will attract, if applicable. No authority can take objection on the reduced salary since it is as per the guidelines / directives given by H'ble SC. In this case you will show actual days of work or actual days paid. So in working of PF and ESI there won't be any question as to days worked or NCD.
According to me, it is a golden opportunity to settle the dispute of payment during lock-down as per the the guidelines / directives given by H'ble SC. Tomorrow whatever the final decision comes in the matters before the H'ble SC, you are protected by memorandum of settlement as stated above and there will not be any impact of the judgement on you, as what I feel at this moment.
These are my views based on my study.
Seniors and experts can comments on it.
From India, Mumbai
I would like to add as under:
Whatever you decided to pay during lock-down, I suggest you to have it in writing in the form of memorandum of settlement, get is registered and submit a copy of it to H'ble SC. This is as per the guidelines / directives given by H'ble SC in its interim order in Ficus Pax and others.
When you decide to pay for the days not worked by employees during lock-down, it should not to be treated as wages or salary. Wages or salary is due for working days or paid leave days. In the present circumstances you are paying the amount against no work done by the employees as per the MHA directives. When it is not treated as wages or salary and treated as Covid Ex-gratia pay, PF will not attract on it but ESI will attract if you pay it on monthly basis or bi-monthly basis.
In case of wage / salary against work done during lock-down and thereafter, if you decide to reduce the quantum of it, in this case also I advise to have memorandum of settlement duly registered as per the guidelines / directives given by H'ble SC. Whatever amount you decide here will be treated as wage / salary and on it both PF and ESI will attract, if applicable. No authority can take objection on the reduced salary since it is as per the guidelines / directives given by H'ble SC. In this case you will show actual days of work or actual days paid. So in working of PF and ESI there won't be any question as to days worked or NCD.
According to me, it is a golden opportunity to settle the dispute of payment during lock-down as per the the guidelines / directives given by H'ble SC. Tomorrow whatever the final decision comes in the matters before the H'ble SC, you are protected by memorandum of settlement as stated above and there will not be any impact of the judgement on you, as what I feel at this moment.
These are my views based on my study.
Seniors and experts can comments on it.
From India, Mumbai
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