An employee comes under PF and ESI limitation but he is not willing to contribute to it. is it legal. i hope my friends will help me finding a solution Regards ANU
From India, Kochi
Dear Anu,
Please understand that it is a LAW, and cannot be relaxed on anyone's willing. If a employee is working and getting salary, even daily wages, he should be coverd under PF & ESI as applicable to the ACT. so, please do not entertain such employee's.
Regards,
SIDMAN

From India, Madras
Dear Anu,
The Employees Provident Fund and Miscellaneous Act 1952 and Employees State Insurance Act 1948 are Social Security Legislations. It is the obligation of the society / authorities to see that these legislations are being implemented. The willingness of an employee is immaterial in this regard.
Abbas.P.S

From India, Bangalore
Dear Anu,
Please note that, as of now, if an employee's basic salary + DA is above Rs. 6500/- then there is no need to enroll him as a member provided he is not an existing member. As far as ESI is concerned, if the total monthly salary is Rs. 15,000/- and below and he has to be a member.
Trust you have understood.
if you have any doubts, please post your comment to me.
Thanks & regards,
Gopalakrishnan
Head HR

From India, Madras
Dear Anu,
Mr.Abbas and Mr.Gopalakrishnan have stated the facts relating to your query. To add one more point, even as an employer you do not have the option to exclude members. But if the scheme promoted by you is far superior than the Act then you need to convince the authorities and then seek exemption. But this is far from reality because all the Social legistlations are formulated by the Government considering the best benefits that can be provided to the individuals. In short you have to abide by law and neither the employer nor the employee have the choice if they are covered under the provisions of the respective acts.
Regards
M.V.KANNAN

From India, Madras
Dear all,

My above posting is to the query on an unwilling individual to contribute to EPF & ESI. But if the employees are provided with better facilities than the ESIC, with the request of the employer and employees; such organisations may be granted exemption from the operation of ESI Act.

For the existing exempted organisations, the time to apply for exemption was minimum one month before the epiry date. Now after the amendment 2010, it is enhaced to three months.

I shall quote from the Key Notes published by TAXGURU, the leading Tax consutant website, on 3rd Sept 2010 in this regard.

"9. Exemption of a factory or establishment or class of factories or establishments from the operation of this Act will be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act. It has also been provided that application for renewal of exemption shall be made three months before the date of expiry of the exemption period and a decision on the same will be taken by the ap*propriate Government within a period of two months of receipt of such application. (new proviso added to section 87 of the Act)

10. Exemption granted to factory or establishment from the operation of this Act shall be prospectively and not retrospectively as per section 91 of the Act."

Abbas.P.S

From India, Bangalore
hello anu,
mr abbas is right, u as an employer can not leave it to the disposal of an employee, if as per the act an employee should be covered under the provisions, he/she can not deny the same..
shivendra

From India, Gurgaon
Hi
Pl provide the process / procedure to get an exemption from ESIC "with the request of the employer and employees; such organisations may be granted exemption from the operation of ESI Act."
About PF we can enroll the Employee whoes basic + DA is more than Rs.6500/- under condition that the employer is ready to pay an administration charges on the same. For that a Voulentery undertaking needs to be submit to PF office with the attestation of the employer.
Thanks

From India, Mumbai
Dear Abbas, What is the procedure to get exemption from ESIC act. Pl explain in detail Regards Radha
From India, Hyderabad
It is an statutory obligation on the part of the employer as well as employee.
One can not avoid, if the employee desires to be an permanent employee to avail benefits like Bonus, Gratuity, encashmnet of earned leave etc. and including PF and ESI.
On the other hand the employer is liable for prosecution for not extending the benefits to this individual.
Please note and advice accordingly
Regards

From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.