Sr. Manager Hr/admin
Asst.manager -hr
Adoni Suguresh
Sr.executive (per & Adm)
Management Consultants Legal & Hr
+2 Others

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Dear Sir/Ma'am,
I am working in a manufacturing company. We have our Head Office in Indore (M.P.), where we are 15 employees. and we have appointment our residential sales representative in different-different locations of India, like: Bangalore, Chennai, Baroda, Delhi, Kolkata etc...
Overall we have 30 employees in our company. Apart from that we have our plant at Kanpur (U.P.) location, where we have appointed workers through one contractor, hence I am not looking after the HR activities for our workers.
My question is that for the PF purpose it is necessary that we must have 20 employees in a particular one state or we have to register in PF, as I shared we have our executives in different-different states?
Kindly help me over this matter.

From India, Solan
Hi Ms. Sapna Being ESI and PF as central act they will look over all strength of the organisation irrespective of location. You can consider the total strength of entire India.
From India, Bangalore
Hi All,
I have doubt in PF... Is the PF (employer contribution) can be deducted from CTC of employee.
If so can we mention the column as PF(Employee and Employer contribution) in payslip or salary break up... Explain me detail
Please help me...

From India
Dear Sir/Ma’am, Is a proprietary firm also eligible to register in PF? Regards, Sapna
From India, Solan
Yes. Any firm either Propreitor, Partnership or Limited companies are applicable for ESI & PF
From India, Bangalore
Hi, Yes if its proprietor ship or Pvt ltd or LTD, should be register with PF. if your organization have 20 or more than 20 employees.
From India, Mumbai
Dear sir/Ma’am, I have one more query- What is the legal punishment if company did not register in PF? Could you please provide me any supporting for the same. Regards, Sapna
From India, Solan
If at all it is not enrolled then the organisation may have to pay the contributions of both Employee and Employer from the day of applicability along with interest and the penalities
From India, Bangalore
Dear Friend,
Legal punishment under the Employees' PF & Misc. Provisions Act,1852 & The Scheme is as under:
a) Damages : as charged as per scheduled rate .........
b) Penal Provision :
*Liable to be arrested without warrant being a cognizable offence,
*defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines upto Rs 10,000/ (Section 14). *For any retrospective application, all dues have to be paid by employer with damages upto 100% of arrears,
In case of any companies in the capacity of Proprietorship Firm, Partnership Firm, Pvt Ltd or Ltd, employing 20 and above employees will be required to obtain PF registration under the aforesaid Act.
Sibabrata Majumdar
Management Consultants Legal & HR

From India, Calcutta
Dear Sapna madam,

If your r\strength on any day exceeds more than 20 including your own employees and contract employees then your establishment should be registered with the Enforement Officer, EPFOnder the Provident Fund Scheme. This strength inclusive of all including your all branches whose name appears on the rolls of the Company. You can maintain the consolidated account at your HO level at Indore and get all the input from your respective units. If you want to make unit wise and then again you have to take a establishment code from the EPFO of respective state. In such case what ever may be the strength.

As regards your query about legal consequences. See the law is made for the benefit of the Employees and it is nothing but one way of Saving of employee. So popularly called this as BHAVISHYA NIDHI. It is the employers duty to implement the laws not on in the interest of his own establishment but also in the interest of employees.

Non implementation of scheme definitely it will attract the penal clause as stipulated in the Provident Fund Scheme, 1952. If during the course of any inspection by the Enforement Authorities, then it will be difficult to escape but you have to pay the contribution from the retrospective dates of joining of the employees to the company. In such case bo the employees and employers contribution with interest and penal has to be borne by the employer.

I hope you got the answer to your query. Any doubt you can write either on this thread or you can follow to an y of our experts in this thread.

Adoni Suguresh

Sr.Executive (Pers, Admin & Ind.Rels) Rts

Labour Laws Consultant

From India, Bidar

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