Anonymous
Hello Everyone, Thank you for reading my query. The facts are as follows:

1. Due to unavoidable circumstances, my unit was closed two years ago and remains closed.
2. The number of employees sanctioned is 100.
3. The maximum number of employees during the past 7 years has been less than ten.

Exemption from PF/ESIC

Is it possible for us to obtain an exemption from PF/ESIC or to eliminate PF applicability to our unit?

Please help.

Thanks,
SK Jain

From India, Dehra Dun
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Sir, so far as coverage under the ESI Act, 1948 is concerned, Section 1(6) of the said Act provides that a factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.

Similar provisions exist in Section 1(5) of the Employees' Provident Fund & Misc. Provisions Act, 1952.

Hope you will see the above provisions of Acts in respect of the issue raised in the thread.

From India, Noida
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