Pf,bonus,gratuity issues of part time employees
P.C. Joshi
(Querist) 01 January 2013
This query is : Resolved
Dear Friends,
A aged about 56 yrs is working as GM in a company. If the Company wants him to employ on part time instead of 6 days he will be required to work only 3 days and he will be paid half salary. Both A and Company agree to this arrangement and a fresh appointment letter is made out which both the parties sign.A is agree to this arrangement provided his PF/ESI/Bonus and gratuity benefits are continued without break.
I shall be grateful if someone pls advise on the following issues.
1. Is this a legally valid arrangement can any one or A at a later stage challenge the arrangement.I mean reduction of salary of an employee and keep him on part time basis.
2. In this case is the com-any liable for PF,ESI,Bonus or gratuity arrangments.
Thanks & regards
Sudhir Kumar, Advocate
(Expert) 06 January 2013
liable to pay ESI/PF even if he is par timer and even if there is no contract to hat effect.
Raj Kumar Makkad
(Expert) 06 January 2013
The mutual contract is the base of any service conditions so none can challenge him once agreed under free will. All statutory facilities as already undertaken shall be granted to A.
P.C. Joshi
(Querist) 07 January 2013
Sir,
If by mutual letter a whole time employee (Sr level)and emplyer agree whereby the whole time employee's terms are changes like instead of coming all working days, he is allowed to come only three days' a week or half day for every day and his salary is reduced by 50%.The idea is that the employee wants to enjoy the benefits of PF and gratuity by this agreement/letter, which the employer accepts. is this arrangement legally valid.
Thanks
Raj Kumar Makkad
(Expert) 07 January 2013
We all can understand what ever you have already mentioned in your query and our reply is accordingly given.
Both the parties to the agreement can at any time change the terms in the mutual interest.
