Dear All
In my previous company we were deducting PF and ESI of Trainees and Probationary Employees.
in Present company we are not deducting PF & ESI for Trainees and Probationary Employees.
Is there any law which tells that, there is no need to deduct PF and ESI for trainees.
Kindly forward your remarks,
V.Sandeep
From India, Hyderabad
1In my previous company we were deducting PF and ESI of Trainees and Probationary Employees.
in Present company we are not deducting PF & ESI for Trainees and Probationary Employees.
Is there any law which tells that, there is no need to deduct PF and ESI for trainees.
Kindly forward your remarks,
V.Sandeep
From India, Hyderabad
Hi, Persons covered under Apprentice Act, now becomes eligible for availing the benefits of ESIC., as per the new guidelines from ESIC department mukesh mehta
From India, Mumbai
From India, Mumbai
Dear
In case the Apprentices are taken under the Apprentices Act or Standing orders they are exempted.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684.
more at https://www.citehr.com/285737-legal-...#ixzz1ALZNCTN5
From India, Bangalore
In case the Apprentices are taken under the Apprentices Act or Standing orders they are exempted.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684.
more at https://www.citehr.com/285737-legal-...#ixzz1ALZNCTN5
From India, Bangalore
PF and ESI is very much applicable upon Trainees and Probationery employees.
It depends upon company to company whether they start with probabation period or not but it does not mean that a company will let off himself from PF and ESI.
regards
Mukesh mehta
From India, Mumbai
It depends upon company to company whether they start with probabation period or not but it does not mean that a company will let off himself from PF and ESI.
regards
Mukesh mehta
From India, Mumbai
dear V.Sandeep
I fully agree with what V.Sounder Rajan has mentioned, if in case the Apprentices are registered under the Apprentices Act or Employee's (Standing) orders Act, they are exempted from PF. Some time companies intentionally keep the stipend of trainees more than Rs. 6500/- p.m (for them who are not registered under Apprentics Act) to avoid PF responsibility and simultaneously registered all the trainees with the Apprentice Act, to get the financial aid from govt. for each trainee.
regards.
Jawed Alam
From India, Dhanbad
I fully agree with what V.Sounder Rajan has mentioned, if in case the Apprentices are registered under the Apprentices Act or Employee's (Standing) orders Act, they are exempted from PF. Some time companies intentionally keep the stipend of trainees more than Rs. 6500/- p.m (for them who are not registered under Apprentics Act) to avoid PF responsibility and simultaneously registered all the trainees with the Apprentice Act, to get the financial aid from govt. for each trainee.
regards.
Jawed Alam
From India, Dhanbad
Dear Friend,
Whenever, you are in doubt whether the xyz catagory of employee are covered by the provision of any law, please always first read the defination of EMPLOYEE/WORKER (under that particular legislation).These definations clearly indicates who is covered by the provision. In this case, PF is not applicable to apprentices whether or not the stipend is more than Rs. 6500/-. However, as rightly adviced by Mr. Mukesh Mehta, ESIC is applicable. Regards.
From India, Nagpur
Whenever, you are in doubt whether the xyz catagory of employee are covered by the provision of any law, please always first read the defination of EMPLOYEE/WORKER (under that particular legislation).These definations clearly indicates who is covered by the provision. In this case, PF is not applicable to apprentices whether or not the stipend is more than Rs. 6500/-. However, as rightly adviced by Mr. Mukesh Mehta, ESIC is applicable. Regards.
From India, Nagpur
Dear Sunil Sardar.
As per Section 2 (f): employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person:
(i) employed by or through a contractor in or in connection with the work of the establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;
So I think (with my limited mental faculty) if any apprentice who is not engaged/registered under Apprentice Act, 1961 shall not be treated as Apprentice so far the meaning of "Employee" as per PF ACT is concerned.
So if any Apprentice not engaged under Apprentice Act will be as good as other Employee and the company is bound to deduct PF as per PF Act. Further more if the company start deducting PF for those Apprentice who are not engaged under Apprentice Act then he will treated as "Workman" as per ID Act and the Company at the end of his Training period will face lots of legal problem in ending his Contract with the company even if his performance is not satisfactory.
That is why I mentioned Rs. 6500/- Wgaes ceiling to avoid PF responsibilty in case of Apprentice who are not covered under Apprentice Act,
Jawed Alam
From India, Dhanbad
As per Section 2 (f): employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person:
(i) employed by or through a contractor in or in connection with the work of the establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;
So I think (with my limited mental faculty) if any apprentice who is not engaged/registered under Apprentice Act, 1961 shall not be treated as Apprentice so far the meaning of "Employee" as per PF ACT is concerned.
So if any Apprentice not engaged under Apprentice Act will be as good as other Employee and the company is bound to deduct PF as per PF Act. Further more if the company start deducting PF for those Apprentice who are not engaged under Apprentice Act then he will treated as "Workman" as per ID Act and the Company at the end of his Training period will face lots of legal problem in ending his Contract with the company even if his performance is not satisfactory.
That is why I mentioned Rs. 6500/- Wgaes ceiling to avoid PF responsibilty in case of Apprentice who are not covered under Apprentice Act,
Jawed Alam
From India, Dhanbad
Probationers are covered by EPF and ESI subject to their salary conditions. Trainees are also covered under both these Acts. However, apprentices engaged under the Apprentice Act, 1961, after registering with the Related Instruction Centre (RI Centre) of the Government are exempted from the operation of both EPF and ESI. Similarly, trainees engaged following specific provisions in the CERTIFIED Standing Orders of the company(if available) are also exempted from EPF, but with the new amendment in ESI Act no such exemption is available under the ESI.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls