manjula17 Started The Discussion:
I am working in a call centre. There is a high attrition rate. We pay pf and esi and the employee leaves the organisation. Want to know if an employee can be taken for 3 months on salary basis without pf & esi deduction. Please help.
No, you can't take them on salary basis without Pf or Esic,It is mandatory to employer to pay PF & Esic of each and every employees.Some employer not showing new employees on muster & also not deducting Esic, PF & P-Tax from their wages for two to three months.You can go for same,but this is wrong practice.
In fact I want to modify my reply. Since the Standing orders Act is not applicable to you as youa re not an industrial establishment within the meaning of standing orders act, even if you appoint them as trainees, iam afraid, you can escape from liability even under P.F. The better option is to appoint them as apprentices under Apprentices Act 1961(if the Act icovers your establishment) since they are not covered both under P.F Act and ESI Act.
Hr & Labour Law advisor
No you can't take any outside employees as an Apprentice,There are some Government ITI institute from whom you can take the candidates as a Apprentice for the said period and Within seven days from the date a trade apprentice joins an establishment, the employer shall prepare the return in form Apprenticeship – 4 in Schedule-III in duplicate and shall submit one return to the Regional Director or State Apprenticeship Adviser as the case may be, and the other to the Principal or Head of the Institute where Basic Training or Related Instructions shall be imparted.
But most probably Apprentice are taken in manufacturing unit for technical position for giving Basic Training or Practical Training.
I totally agree with Ganesh Chavan regarding "Apprentice".
Good suggestion "You can make there Basic salary above 6500 so PF will not be eligible for them & you can make their gross salary above 15,000 p.m. then you need not pay for PF & ESIC".But you should pay the Admin Charges of both social Security Acts,
Their is no other Option available.
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> professional tax dearness allowance ceiling limit pension scheme esi & pf basic salary probation period sales tax social security Location-India-Mumbai esic act standing orders iti institutes esi deduction pf and esic labour law advisor new employees Complete List Of Categories
Interesting Relevant Discussions