How To Get Rid Of PF/ESIC Applicability On Manufacturing Unit? Present Number Of Employees Reduced To 10 And Also When A Unit Is Closed Since Past Two Years Or More? - CiteHR
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Hello Everyone,
Thanks for reading my query, Facts are as:
1. Due to unavoidable circumstances, my unit was closed two years ago and still closed.
2. Number of employees sanctioned are 100.
3. Maximum number of employees during past 7 years less than Ten.
Is it possible that we get an exemption from PF/ESIC or get rid of PF applicability on our unit?
Please help
SK Jain

(1) So far as coverage under ESI Act, 1948 is concerned Section 1(6) of 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.".
(2) Similar provisions exist in Section 1(5) of the Employees' Provident Fund & Misc. Provisions Act, 1952.
Hope you will see above provisions of Acts in respect of issue raised in the thread.

Dear Mr Mehta, Thanks for update. I knew about these, but wanted to ensure if there is any other way which I am not aware of. Thanks for your quick update. SK Jain
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