Statutory deductions
Anand Thakkar
(Querist) 01 April 2015
This query is : Resolved
HELLO EVERYBODY...
MY QUESTION IS THAT, IF DUE TO FINANCIAL CRISIS COMPANY COULD NOT PAY THE SALARY TO ITS EMPLOYEES, THEN IS THE COMPANY LIABLE TO PAY PF AND ESIC CONTRIBUTION TO THE ACCOUNT OF EMPLYOEES..
CLICK LOGIC IS WHEN THE SALARY ITSELF HAS NOT BEEN PAID THEN IS THERE QUESTION OF DEDUCTION OR DEPOSIT OF CONTRIBUTION?
THANKS.
Sudhir Kumar, Advocate
(Expert) 01 April 2015
PF and ESI are statutory oblation but only when the payment of salary is proved.
an employee who is not able to extract his salary is not entitled to this benefit during the unpaid period.
come forward with facts of the case.
Dr J C Vashista
(Expert) 01 April 2015
Vague query with incomplete information, however, I agree with the expert advise of Mr. Sudhir Kumar, an employee who is unable to produce "salary slip/ certificate" is deemed as non-employee.
Anand Thakkar
(Querist) 01 April 2015
Thanks for your reply...
The facts of the cases are that the company which could not pay salary to its employees, when the company was facing financial troubles its MD left the company and flee to foreign, then after the employees with the help of technical support downloaded their salary showing the payment to them and deduction made from them from the portal of the company but those were unsigned and unauthwntic though they lodged a complaint against the MD of company u/s 409, 418, 201 &114 of IPC.. But by mistake they themself stated facts in FIR that for a particular period they were not given salaries from the company. And for the same period they allege to have deducted statutory amounts from their salary. Even before labour court in their recovery applications they alleged that for that period they were not given salary.. So now my question again stands that if the salaries are not paid by company due to financial crisis then, can it be alleged that deductions are made and not deposited so 409 of IPC can be applied..? Here company is not been joined as the accused... Kindly give me further suggestion with any judgement if available with you.
Thanks.
Rajendra K Goyal
(Expert) 01 April 2015
Unauthorized act of the employee in absence of signatures from authorized person. No salary, no PF, ESIC.
Anand Thakkar
(Querist) 01 April 2015
Thanks Rajendra K Goyal...can you suggest me related section or judgment of Hon'ble Supreme Court on the same topic..!!
malipeddi jaggarao
(Expert) 01 April 2015
Deductions will be made from what? Obviously from salaries at the time of payment. If salary is not paid, no deductions need be, or can be alleged to have deducted. For this simple reason, what sections and judgements you require?
Guest
(Expert) 01 April 2015
I differ with the reply of Shri Sudhir Kumar, "an employee who is not able to extract his salary is not entitled to this benefit during the unpaid period." Non-payment of salary is not the yardstick for the entitlement or non-entitlement of the employee for pf and esic.
The company cannot be absolved of its liabilities, as represented through the MD, irrespective of its financial crisis.
Anand Thakkar
(Querist) 01 April 2015
Thanks all to share their precious knowledge with me and to guide me..!!
Guest
(Expert) 01 April 2015
You are welcome.
T. Kalaiselvan, Advocate
(Expert) 04 April 2015
The employees were entitled for their respective salaries during the period in which the same was not disbursed by the company due to financial crunch, however it cannot be said that they are not entitled to the statutory deductions. As and when the salary is to be made, the same can be deducted, so I agree with the opinions of expert Mr. Dhingra in this regard.
