Dear seniors,

I am working as a HR in manufacturing company. In my company we won’t deduct ESI & PF for the candidates who are in probation period. In my company probation is one year. Is it legally right.


Thanks & Regards
Rekha

From India, Madras
Dear,
I haven't heard it before but shockingly, i have to say this practice is illegal.
Probatiob period can be extended with the discretion of the management.
pls go trhough the company standing orders but employer should deduct the esi & pf.
becoz, if someday any injury/any event taken place who will be accountable for that.
if u r on the comp roll or contract labour as well these r legal implication one has to fulfill.
Regards
Vipin:(

From India, New Delhi
Dear Rekha,
Person Working In any Manufactuing / Service or any Industry if covered under ESIC & EPF has to take care of Both Component from Very First DAY... No matter he/ she is Casual , on Contract , On Rolls.., Trainee , or on Probitonery...
Its illegal and at the time of Inspection they may creat problem.. Its better you deposit all Contribution with penalty.......
Rest.. Its better you make all document in Order ... Like ESIC Cards and other Legal Formalities...
ESIC AREAS COVERED The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories

STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.
fyi
Surender SIngh

From India, Lucknow
Dear Mukesh ji,
Except Apprentice Trainees under the Apprentice Ship Act are not covered under PF but any trainee taken up by the management should be covered. The response given for this by all friends are correct. PF / ESI will be covered to all the employees from the date of inception in services. Consultants appointed by the management is also covered under PF act. (Consultant mean any service consultant who has engaged either technical or non-technical aspect, if the consultant firm is covered in PF no problem - see the LLR,94 issues).
Regards,
PBS KUMAR

From India, Kakinada
well if u u give offer to n employee tht means he is on ur par roll n u hv to deduct pf n esi fr his salary....
From India, Bangalore
No relaxation in deduction of pf esi for probationers. Even if they worked for one day you have to deduct and cotribute pf and esi
From India, Madras
dear Rekha.
I have gone through your problem for ESI And Pf deduction for Probationers.
Pl note that when your establishment is coverd under ESI and Pf it is obligatory on your part to cover all employees except Apprentices under Act.
Even contract employee is also covered without any limit of number.
Pl ensure this.
Inspection from ESI and PF authority will levy huge penalty and ask for contribution. This is also Criminal Offence and Your Managing Director or Propritor is liable for criminal procecution. which will have penelty as well as jai.
I hope that you will have seriousmess on this subject and cover all with back date and avoide criminal procecution. pl ask me any further querry without any hesistation either by mail or by phone.

09227233315
with regards
himanshu pathak
ahmedabd.

From India, Ahmadabad
Under EPF- definitely you are covered
But in case of ESIC ther is a catch here
You need not deduct ESI if the wages of the employee is above Rs 10,000 permonth.
Here to calculate the wages here you have to take into account the sum of following factors
i. all remuneration payable IN CASH to employee
ii. payment for authorised leave of any type, lefgal strike/lockout
Now from sum of above, substract
iii contibution paid by emoployer to PF pension fund etc.
iv travelling allowance /value of trvelling concession
v. sum paid to defray special expenses (like washing allowance)
vi any gratuity payable on discharge
vii overtime wages
Thus the amt u get by above calculation is greater than 10,000 per mont, u need not pay ESI contri for such workers ( regular, probationersor any.)
Hope this will help you

From India, Bharat
Also dear members
I would like to point out that it is not compulsory to enroll in EPF if the wages fall above Rs 6500 as mentioned in the act or even if it is below 6500 Rs then also it is not necessary if there exist better facilities as extended by the corporation.

From India, Bharat
As senior members and all have rightly pointed out, its illegal for a company for not deducting ESI & PF. Its a statutory liability and anything which is unlawful is punishable. kb
From India, Madras
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