Dear Sir,

In view of phase-wise lockdowns and relaxations, the appropriate governments are allowing industries to operate with reduced manpower (both onrolls and contract) in Green/Orange Zones. If the local administration permits the operation of the industry with 33% of the workforce, the following legal aspects need clarification:

1) Out of 1000 employees, we can have 333 on duty. What are the implications regarding PF/ESI contributions for the remaining 667 employees?

2) How many employees should be considered for the generation of PF/ESI challans?

3) What are the obligations of the employer concerning the payment of salaries/wages for the 667 employees who have not been working either at the workplace or from home?

4) How does the non-working period during lockdown affect the calculation of Annual Leaves, Annual Bonus, and Gratuity?

Kindly provide clarification on the above points.

Regards,

Krishna Kumar

From India, Hyderabad
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Employees on the muster roll of an establishment do not cease to be employees during the Covid-19 clampdown/lockdown by mere executive orders restricting the employers to allow certain or some of them. Thus, the benefits of PF, etc., ought to continue. As far as computation of the leave period is concerned, the employers affected by the executive's order ought to seek and secure clarity from the enforcement authorities.

Such employees who are debarred from reporting to their respective workplaces to resume their normal duties they were hitherto discharging need not be penalized. This is my take.

Harsh K Sharan, Kritarth Team

From India, Delhi
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Ok sir. Thank you for your opinion.
From India, Hyderabad
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