Hi, I am working in a small organization that has only 11 employees. It is applicable for ESI, PF, Bonus, Factories Act, Shops and Establishments Act, and Minimum Wages Act. Please provide a proper answer to my question. It is a consulting services company registered under the Shops and Establishments Act.
From India, Hyderabad
Acknowledge(0)
Amend(0)

for a company of minimum 20 employees, both PF & ESI is applicable. And also for the PF facility the company has to be 3yrs old.
From India, Mumbai
Acknowledge(0)
Amend(0)

I thought that P.F. liability become applicable immediatly when a establishment appoint 20 employee in any day. Is this apply after 3 months. Please clear any one. thanks.
From India, Jaipur
Acknowledge(0)
Amend(0)

Hi Rao,

PF Applicability: Establishments having 20 or more employees.

ESI Applicability: Establishments having 20 or more employees drawing wages up to 10000.

MLWF Applicability: Establishments having 5 or more employees.

Bonus Applicability: Establishments having 20 or more employees.

For more clarification, kindly visit Excel Consultancy Services.

From India, Mumbai
Acknowledge(0)
Amend(0)

The PF will be applied as and when the establishment crosses an employment strength of 19 (becomes 20). The number is irrespective of salary. The only thing is that those who are drawing not less than Rs 6500 are covered mandatorily.

The PF will be covered from the date of joining an establishment covered by PF, and the infancy protection of 3 years has been removed.

For ESI applicability, the employee strength is 10 workers drawing a salary not more than Rs 10000. It is for other establishments like service sector companies that the minimum requirement is 20 employees.

Regards,
Madhu.T.K

From India, Kannur
Acknowledge(0)
Amend(0)

Dear All,

I have joined a software development company as an Assistant Manager which started its operations in July 2007 (last year), and is a subsidiary of a US-based company. As of now, there is no HR Manager; there was an HR consultant who is not continuing with us. He mentioned that, being an IT company, various labor laws (Factories, Shops & Establishments, etc.) are not applicable to us. It should be noted that we have 20 staff members here, and 8 of them have a basic pay below Rs. 6500/- per month.

Could you please clarify which laws are applicable to us, how I should start implementing them, and where I can find the required forms? Kindly provide detailed information on this matter. Thank you all in advance for your valuable time and advice.

Regards,
V. Bhaskaran


Acknowledge(0)
Amend(0)

Hi,

ESI Applicable: 10 or more persons with power, 20 or more persons without power.
PF Applicable: 10 or more persons with power, 20 or more persons without power.
BONUS Applicable: It is applicable in all establishments but the condition is that the employee should work a minimum of 30 days, and his salary must be between 3500/- to 10000/-.
Factory Act: 10 or more persons with power, 20 or more persons without power.
Shop & Establishment Act: I don't know about it.
Minimum Wages Act: Refer to State Rules.

From India, Bhopal
Acknowledge(0)
Amend(0)

ESI Applicable:- 10 or more person whose Gross is less than 10000/- PF Applicable : - 10 or more person whose basic+DA is less than 6500/- BONUS Applicable:- Yes Shop& Establishment Act yes
From India, Ahmadabad
Acknowledge(0)
Amend(0)

Hi Rao, The minimum no of employees applicable for the statutory law is 20... But you can apply for these though you have low employee strength
From India, Madras
Acknowledge(0)
Amend(0)

Hi, Is there any law stating that a company pays out bonus only after completion of 5 years from date of establishment?
From India, Calcutta
Acknowledge(0)
Amend(0)

Dear If it is in losses. For more deatails,plz go through The Paymemt of Bonus Act,1965. Regards, R.N.Khola (Labour Law & Legal Consultants) 09810405361
From India, Delhi
Acknowledge(0)
Amend(0)

Stuck with an HR fire? Get a verified answer before your next coffee. - Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.