Unclaimed salray implications under various act

This query is : Open

anurag hans (Querist)
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25 January 2012 Dear Sir/Madam,

i am associated with an Hospital, many times it happnes cheques have been issued in favour of employees but in fact employees do not encash them.

What are the implications under various
Acts like PF, ESI, Bonous, Limitation ACT

Thanks,

CA Anurag Hans

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)
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26 January 2012 if those people are shown as Employee (with proper offer letter, employee record etc) then these labour laws (along with TDS provision )will be attrated from employers point of view.

Since those people are not encashing their salary it may be treated as surrender of salary if empolyer has anything in this respect.The other view may be once the income is credited it becomes income of employee and they are responsible for its disposal.EMployees will be subject to Tax.
I belive second view is more relevant since employer has credited salary But employees are not encashing.

Kuch Jugaad wali situation lagti hai as superficial entry.

anurag hans

anurag hans (Querist)
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26 January 2012 Vikas sir, thanks for your opinion but let me tel you some more about this issue

1. Employees are on proper payroll
2. TDS whereever applicable is properly deducted
3. Salaries are subject to ESIC & PF Deductions
4. Labour laws are applicable to orgnisation
5. cheques issued have not been encashed for more than 6 months.

so, i want to know what are the various provisions which will get attracted like. Delhi state labour laws, limitation ACT etc.

Thanks

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