Layoff compensation
rao
(Querist) 28 May 2009
This query is : Resolved
Dear Sir,
When local Govt., sick industry closed its activites for a period of 3 years, then it was sold by private organisation through open bid offered by local Govt.
The local Govt., declared layoff compensation for closed period of 3 years.
While paying the Layoff compensation the local Govt did not deduct the P.F contribution from employee as well as employer.
After passing of 4 years employees have approached the P.F Adulat for non deducting of P.F deductions for the received payment of Layoff compensation.
P.F. authorities also order to the said purchased private organisation to pay the due amount of P.F on payment of Layoff compensation.
1. My question is whether Layoff compensation comes under the wages
2. will the present employer has to pay the due amount of P.F
3.Have any court orders issued relating tp the recovery of P.F deductions while payment of Layoff compensation
Guest
(Expert) 28 May 2009
It is a well established principle that the initial obligation to pay EPF contributions is on the employer irrespective of the fact whether wages are paid or not to the employees. Even in cases of a lock-out, strikes, etc., failure to make contributions resulting in default will attract damages under Section 14B of EPF and Pension Act, 1952 (Case Laws : Calicut Modern Spinning & Weaving Mills Ltd. Vs Regional Provident Fund Commissioner, FLR 1982 (45) 92 (Kerala HC); 1982-I LLN 360; 1982 Lab. IC 1422; (1982)I Lab. LN 360; ILR (1982) I Ker. 698; (1982) Lab. I.J 440.].
With regard to the fact that who is liable to pay the due amount of PF is based on the Agreement entered into by the Present employer and the Govt.
