Our organization issues offer letters with a 6-month probation condition. All benefits, including PF, start after confirmation at the end of the probationary period. I am having trouble understanding how to handle an offer that only specifies a lump sum salary without any deductions.

Advice Needed on Offer Letter and Probation Period

I seek your advice on the following matters:
1. Is this the correct procedure?
2. What should be the appointment date?
3. When should the appointment letter be given?
4. According to the law, from which day should PF benefits be provided?

Your guidance on these questions would be greatly appreciated.

Sincerely,
Saurabh

From India, Calcutta
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It depends on how you have been designated in the company, whether as an employee or a trainee/apprentice. If you are designated as a trainee/apprentice, then the company will not be paying PF. If you have been hired for a fixed term of 6 months, the company will not pay PF because it will be considered as a stipend. If, as an employee, the basic pay (not gross) is more than Rs. 6500, the company will have Form 11 filled by the employee at joining to be exempted from PF.

Furthermore, every establishment with more than 20 employees (hopefully soon to become 10 employees) is required to pay PF for all employees.

Your answers:

1. Is this the right procedure?

Ans. It is correct if you are a trainee/apprentice since it is not considered full-time employment.

2. When should the appointment date be?

On the day of joining the company as an employee, and in the case of a trainee/apprentice, the date of confirmation as an employee.

3. When should the appointment letter be given?

On the day of joining the company as an employee, and in the case of a trainee/apprentice, the date of confirmation as an employee.

4. From which day should PF benefits be given as per the law?

From day 1 if you are an employee and not as a trainee/apprentice.

I have corrected spelling, grammar, and formatting errors in your message. If you have any further questions or need more assistance, feel free to ask.

From India, Mumbai
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