Hi All, I need help of the below case.
My friend is working in one of a private firm. In her organization total, 80 employees are there. In which around 35 employees are in company payroll so PF, ESIC applicable for them. Remaining 45 are on voucher means they are not applicable for PF, ESIC. she needs suggestions. she has to take them on payroll or she should outsource them . which one is less costly. She was asking me but i know don't know about this. Kindly advise the same.

From India, Pune
Dear Sonali,
Why you need to bring your friend in between?
PF and ESI is applicable to all the employees whether you take them on roll or other wise. Even you take the employees through contract / third party roll, you are liable to comply the PF and ESI when the PF and ESI law is applicable to you.
Even you make voucher payment you are liable to comply the PF and ESI.
Making payment by voucher, I am not touching here.
It is very unfortunate thing that today's' HR professional do not know the basics of labour laws. Yesterday only one of the HR Managers told me that his CA told him to pay the employees by voucher to avoid PF and ESI. The HR Manager is following the CA. Like that there are so many non complaint.

From India, Mumbai
Dear Sonali,
As per labour law, each and every employee should be covered under PF & ESI from the day one of their employment, if your company's strength exceeds the prescribed limit for the statutory coverage.
Secondly, paying through voucher to avoid statutory compliances will lead into trouble in the long run. If you are taking some employees outsourced, in such case also, you will become the principal employer who is liable towards the same payment. So, please don't take chances to cheat the government and you will become liable for huge penalty. Enforcement officers are well aware of your company's manpower strength. Others may suggest to pay through voucher, but, at last, you are answerable to the government not those who suggested to do so.

So, if you need any further clarity please feel free to post here.

Thanks & regards,

From India, Madras

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