Lockdown April 2020, Shall we file Nil Return (Nil Contribution) on particular month in PF & ESI until lockdown completes

@Madhu.T.K
Sir, can the lockdown days be considered as paid leave for previous years when full salary is paid? (Since lockdown was for almost 60 days.)
Should the companies (both Shop & Estb. and Factory Act related companies) need any document for granting this as paid leave.

I did not get you. Let me answer on an assumption like this.

This year, 2020, you have allowed 60 days paid leave due to lockdown

Now in 2021 January, when you decide the eligibility for annual leave/ PL/EL, can this 60 days allowed as paid leave in 2020, b considered as days worked?

YES, because, any paid leave will be counted as days worked for all purposes including leave eligibility and even for gratuity. Now for leave eligibility one has to complete at least 240 days. For this purpose, obviously, the lockdown period should be taken as days worked. Since the number of leave earned in 2021 will be based on the actual days physically present, these 60 days will not be counted for how many leaves an employee earns. I repeat, FOR ELIGIBILITY (to decide whether an employee is eligible to leaves, ie, for 240 days purpose,) all paid leaves will be counted as days worked but one will EARN leaves only for the actual days worked or physically present. Obviously, the number of leaves each employee earns in 2021 will be lesser than any normal year.

The matter of eligibility and earning of leaves based on physical working days are very clearly mentioned in the Act, there is no need for a document for this. Obviously, if you wish to give leaves for the lockdown period also, then you can document it.

Hope I have understood your query in the right way. If not, please let us know .

MHA notification mandates to pay the salary for the lock down period. So there is no question of non-payment of salary. As per the latest SC judgment, the only option employer is having is to negotiate (as per latest SC judgment)

Dear Babebethmani,
MHA notification mandates to pay the salary up to 17.05.2020. Aggrieved by this notification, the various writ petitions are file before the H'ble SC for quashing this notification. The interim order is granted with some guidelines for settlement of lockdown wages. Yes, it is an option since it is mentioning 'which can be availed by...' but it is a golden opportunity before the employer to settle the lock-down wages, as what I feel personally.

@Madhu.T.K

Sir, Though my doubt was different still I Thank You for imparting your knowledge as I am not having much knowledge and hence have lots of doubts.

1. If eligibility of 240 days is not served, then do the employee gets Paid Leave (PL)?

2. Actual Doubt: If I have accumulated 15 PL each for past 4 years = total 60 PL, then will my company count the lock-down period as me utilising all my PL and having PL balance = 0.

3. If I want to use any accumulated PL, how should I ask the company regarding it. For example: If employee takes a 10 day leave for some personal issue without asking any written permission and later asks management to deduct only 5 days salary from these 10 days leave, will the other 5 days be considered as PL. Should the company need any document from me for asking these 5 days as PL or can it just enter it as PL in its attendance register.

4. Side Question: Which leaves employer has to pay for to the employee (Considering both Shop & Estb. and Factory Act related companies)? Can employer give me all PL instead of any Casual Leave (CL). Should PL start only after exhaustion of CL?

5. Another Side Question: Should employer pay PF/ESI to daily wage workers who come randomly when required where the daily wages ranges from 700 to 1000?

Sir, I hope I am not troubling you with too many doubts. Your help is very much appreciated sir.

If 240 days of work is not made, he will not get any leave. That is if in 2020 he has not worked for 240 days, he will not get any PL in 2021. This 240 is inclusive of all paid holidays and paid days. If you have paid 60 days lockdown wages, obviously, that will be counted as days worked and included in 240 days. The number of PL earned in 2021, however, will be based on actual days physically present for work which will not include any holidays, leave days including lockdown days.

If you have 60 days PL, the same can be adjusted against the lockdown period. That depends on the company policy. Some companies have asked the employees to surrender at least 50% of leave in their credit. Some companies have asked the employees to surrender 25% also. Some companies have taken a stand that the salary paid is paid and no need to compensate it by surrendering their leaves.

What is the procedure in your company while availing PL? naturally, you will apply in prescribed leave form. That is the document which says that you have applied for leave and that leave was sanctioned. If you opt that 10 leave be debited and the rest shall be loss of pay, you can do so.

For continuous days of absence it will be PL and for single day it will be CL

Daily rated employees are to be given ESI and PF. But if the notional wages or the wages that would have been payable had they worked for 26 days exceed Rs 21000 and Rs 15000 respectively for ESI and EPF, they can be excluded.