Navigating ESI and PF Rules: Can My Small Software Firm Avoid Registration Issues?

Hi Kal,

Can someone clarify the following for me:

Software development firm

1. We had 20+ employees from Jan 2008 to Sep 2008. If we register for PF from November, will the PF authority raise any questions on why we have not registered in Jan 2008?

2. Now our company has only about 15 employees. Can I register for PF from now (November 2008)?

3. If 20 is the count, then can I move 2-3 employees from the software team to the IT training firm's payroll and eliminate both ESI and PF registration for the time being?
OR
Is there anything that needs to be done to eliminate PF from the months Jan 08 - Sep 08?

4. I heard that some firms take a written declaration from employees stating that they do not need both ESI and PF. Is that valid?

Please help me.

Regards,
Kal

You will be covered with retrospective effect from Jan 2008. You have to contribute with effect from Jan 08. Exemption may be obtained from payment of employees' share of contribution if a request is made jointly by all the employees. No exemption shall be granted for exempting the establishment from coverage or for exempting the employer's share of contribution. No one should remove any name from the muster rolls in order to avoid coverage of EPF/ESI. For EPF coverage, the number of employees may be changed to 10 from the present 20. Even if you have only 15 employees now, you are covered since at any day your employment strength exceeded 19. Regards, Madhu.T.K

Hi,

For PF registration, at least 20 employees are required to be on the company's payroll, and in your case, it will start from January 2008. The PF Department will not inquire about non-compliance since January 2008. Currently, your staff strength is less than 15, which will not affect the coverage; therefore, you can still submit the application.

If you have any further queries, feel free to call us at 09867456610, send us an email at associates.samarth@gmail.com, or visit our website: associates.samarth.tripod.com. We have been professional labor law practitioners since 2000, providing various services in labor law compliances.

Thanks & Regards,
Samarth Associates.