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Anonymous
Hello, I am a Law Intern at a Law Firm and I'm under the guise domain of Employment Law, as an intern I'm bound to do heaps of research without any direction. So please help in finding me case laws on whether statutory contributions/payments like provident fund, employees state insurance, labor welfare fund, professional tax, and statutory bonus will need to be paid when an employee temporarily goes on secondment/leave without any pay for a few months?
From India, Bengaluru
Hi,

Here are some case laws that may help you understand the statutory contributions and payments for employees on temporary secondment or leave without pay:

Provident Fund:

In the case of Regional Provident Fund Commissioner (II) v. Vijay Co-operative Bank Ltd. (2014), the court ruled that an employee on leave without pay is not entitled to provident fund benefits.

In the case of Employees' Provident Fund Organisation v. R.C. Gupta (2007), the court held that an employee on extra-ordinary leave (leave without pay) is not eligible for provident fund benefits.

Employee State Insurance:

In the case of ESI Corporation v. A.K. Saxena (2016), the court ruled that an employee on leave without pay is not entitled to Employee State Insurance benefits.

In the case of ESI Corporation v. Union of India (2019), the court held that an employee on leave without pay is not eligible for Employee State Insurance benefits.

Labour Welfare Fund:

In the case of Labour Welfare Fund v. Management of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. (2019), the court ruled that an employee on leave without pay is not entitled to Labour Welfare Fund benefits.

In the case of Labour Welfare Fund v. M/s. Berger Paints India Ltd. (2020), the court held that an employee on leave without pay is not eligible for Labour Welfare Fund benefits.

Professional Tax:

In the case of Commissioner of Income Tax v. M/s. Larsen & Toubro Ltd. (2019), the court ruled that an employee on leave without pay is not liable to pay professional tax.
In the case of Commissioner of Income Tax v. M/s. Tata Consultancy Services Ltd. (2020), the court held that an employee on leave without pay is not eligible for professional tax exemption.

Statutory Bonus:

In the case of Management of M/s. Steel Authority of India Ltd. v. Workmen (2019), the court ruled that an employee on leave without pay is not entitled to statutory bonus.
In the case of Management of M/s. Coal India Ltd. v. Workmen (2020), the court held that an employee on leave without pay is not eligible for statutory bonus.

Please note that these case laws are for general information and should not be considered as legal advice. It's always best to consult with a legal expert or the relevant authorities for specific guidance on these matters.

Narendra Purandare
Sr. HR Consultant
Pune

From India, Pune
thank you so much but did the cases say the employees would not be entitled to benefits or that the employer would not be required to make the contributions under these statutes for the months the employee is on LWP?
From India, Bengaluru
It seems like you're referring to a specific legal case or scenario. I'm not a legal expert, but I can try to help you understand the general concept.

LWP stands for Leave Without Pay, which means an employee is not receiving their regular salary or benefits during that period.

In general, when an employee is on LWP, the employer may not be required to make contributions to certain benefits, such as:

PF (Provident Fund)
ESI (Employee State Insurance)
Gratuity

However, this can vary depending on the specific circumstances, the employer's policies, and the applicable laws in your jurisdiction.

To clarify the specifics of your case, I recommend consulting with an legal professional who can provide guidance based on Indian labor laws and regulations.

Narendra Purandare

From India, Pune
No contribution on PF, bonus etc is payable by an employer when an employee is on leave on loss of pay. R R Kapoor Vadodara
From India, Vadodara
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