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Dear Members,

Had query regarding Opting out of PF.

I) As per the rule a new employee joining a company can opt out of PF :

> If his basic + da exceeds 6500/-

> If he submits form 11 which is in the form of a declaration by the employee that he has not been a member of PF or has withdrawn his PF accumulations or is a PF Pensioner.

In such a scenario, can an Organisation refuse the employee from opting out of PF stating that irrespective of their basic salary all employees are compulsorily covered under PF. Can an Organisation state that as per Company policy, all employees come under PF.

II) Second scenario

If an employee joins a new Company and the employee wants to continue with PF and the Organisation refuses stating that all their employees draw basic beyond 6500/- and the new employee is also given a salary breakup with basic exceeding 6500/-. As a policy they do not provide pf to employees drawing more than 6500/- basic. Is this legal? Can an employer avoid PF ACT?

Basically, the question is whether in cases of opting for or out of pf, can the Organisation refuse as per their set policies and procedure. Kindly guide.

From India, Mumbai
Can the seniors guide me on this one. I need to know whether an employee willing to opt out of pf by submitting form 11 can be refused saying as per Company Policy the option is not given to employees and they have to continue with pf.
From India, Mumbai
I would like to know what are elements that are covered under Travelling Rules / Expenses to be paid to employees on tour for a longer period.
From India, Hyderabad
The following items need to be considered to be for framing travel policy( for travel outside head quarters).

1) The employee shall inform the reporting authority about his travel schedule.

2) There shall be appropriate remark to that effct in relevant register i.e whether attendance register or tarvel register etc.

3)The policy can make a provision for sanctioning advance to the employee to enable fim to book tickets for onward journey and inward journey at the request of the employee.

4) The employee shall produce tickets within a stipulated time from the date of granting advance as evidence of having booked the tickets.

5) The policy shall indicate the mode of travel and the class by which an employee is eligibel to travel which shall be in commensurate with the seniority of position in the company

6)The Policy shall also indicate the lodging fares admisible to the employees. Such fares shall be dependent up on the grade and status of the city like metros, Class -1 cities etc.

7) The Policy shall also indicate the boarding fares admisible to the employees. Such fares shall be dependent up on the grade and status of the city like metros, Class -1 cities etc.

8) The policy shall also determine the daily conveyance charges admissible for conveyance within the city of his halt. It shall be dependent up on the grade and status of the city like metros, Class -1 cities etc.

9)The policy shall prescribe the mode of conveyance and conveyance charges admissible to the employee for travel from his home/office to railway station/air port at the time of departure for onward journey and from railway station /air post to home/office at the time of arrival.

B.Saikumar

Mumbai

From India, Mumbai
Hi,
1 scenario - If he was a member of PF before (organization)then he cannot be excluded from PF.
If he was not a member of PF before, the he can exclude himself. Employer cannot insist on.
2 scenario - If he was a member of PF before, then employer cannot exclude him.
If he was not a member before then only on the consent of employer, he can contribute to PF.
Hope this is clarified.

From India, Hyderabad
Scenario 1
Honestly I have not handled any such incident in my career and hence never bothered to study this aspect. The question is logical and the choice of opting out must be exercised by the employee if his salary is above Rs 6500 pm However I will recheck and get back
Scenario 2
When a new employee joins and if his basic salary is above Rs 6500/ and if the organisation has not been covering other employees drawing more than Rs 6500, then the new employee also will no be covered irrespective of the fact that he was a memer in the earlier organisation. The act is clear about this and this is being practiced in all Companies where they cover employees with Rs 6500 basic or less

From India, Chennai
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