Incentive bonus or production bonus and is excluded from the definition of basic wages under Section 2(b) of EPF Act and should not be considered for the purpose of provident fund contribution.
Whether the payment of ‘Saturday Allowance/Special Allowance’ will form part of the basic wages and accordingly be counted for the provident fund contribution.
Citation: 2012 LLR 22 Decided On: 20.09.2011 Court: High Court of Delhi Facts Regional Provident Fund Commissioner, Faridabad (Haryana) (“Commissioner“) initiated proceedings under Section 7A of the Employees Provident Fund & M.P. Act, 1952 (“Act“) against the Petitioner on the ground that Petitioner had allegedly violated the Act by not depositing provident fund contributions on…
Citation: 2011 LLR 316 Court: High Court of Punjab and Haryana Decided On: 01.02.2011 Facts Respondent-company, for the purposes of determining its contribution under Employees Provident Fund & Misc. Provisions Act, 1952 (“Act“), was taking into consideration the basic wage as given to its employees. The Petitioner claimed that rates of minimum wages which ought…
Citation: AIR 2008 SC 1951 Court: Supreme Court Decided on: 12.03.2008 Facts Regional Provident Fund Commissioner (“Commissioner“) ordered that the amount received on encashment of earned leave has to be considered for the purpose of calculation of “basic wage” under Section 2(b) of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (“Act“). Accordingly, Respondent raised…
Find out what liabilities you can still incur as an acquirer of a company in respect of payment of provident fund dues even though the agreement explicitly excludes any liability on part of the transferee company. The judgment highlights the importance of due diligence regarding employment related liabilities prior to acquisition of one company by another.
One of the most underestimated factors which often might even turn out be a deal breaker in any M&A transaction or Asset Purchase is Employee Transfer. Find out what employment transfer strategy can make your deal go smooth.