PF Diduction from Leave encashments

It is held by the Hon'ble Supreme Court that no Pf contribution shall be payable on encashment of leave.

Hello Sunita,

Thank you so much for the input. Can you also tell me the maximum number of PL (Paid Leaves) can be kept in an account, i have seen every company is following a different policy however i wanted to know what law suggests.

We can keep max of 90 PLs in out account in our company and any leave over and above this will be lapsed.

Look forward for your inout.

Thanks in advance,

Pradeep Arora

Dear Mr. Arolra,

As per Maharashtra rule Factories Act - Minimum 30 PL should be kept

As per Maharashtra rule Shop & Establishment  Act - Minimum 42 Leave should be kept

Upper limit is at the sole discretion of the Management / Policy of the company.

Dear Prashant,

Thank you for clerifications, per Delhi Shop and Establishment act 1961 the minimum limit is 30 as well but i was just wondering if there is any upper limit too. Thank you for your clerification.

Pradeep Arora

Hi Pradeep,

i believe, you would have rcvd satisfied answers of your asked questions, still I would like to throw a light on some facts-

1. PF deduction is not at all required on leave Enchashments as sunita has also mentioned above about supreme court's order. leaves are part of working schedule, and employee's benifit from company that is not under pf deduction.

2. Company has complete right of how many leave they want to enchash at a time. there is no statment mentioned in labour law regarding the same . if company wants it can pay every month for a paid leave or can go for 30 or 90 or any number. it is in the same way we deduct salaries of employee after his excess usage of leave.

For any query you can write further.

Bharat

Hello Bharat,

Thank you for the detailed clerifications. i think i am clear with my doubts. Thank you everyone for your time and help.

Pradeep Arora