Navigating PF Act: Are Small Companies and Media Contracts Covered?

Dear friends,

I am a company secretary, and one of my clients has come up with some queries relating to Labour laws applicability. Please help me to know the following:

1. Whether a company employing about 15 employees is covered under the PF Act (as per the latest amendment - where 10 and above will be covered) when no one is drawing a salary less than 6500/-?

2. In a media company where everyone, including spot boys and TV artistes, is on contract, sometimes even for a day, would they be covered under PF? Please note that everyone is on a daily wage basis, which if calculated monthly, will not be less than 6500 for PF and 10000 for ESI in any case.

3. Does the PF Act cover contract labour, and what is the definition of contract labour?

4. If anyone out there is related to HR of a media company, please let me know the same with your contact number.

Dear,

Salary is not a criterion for the applicability of ESI and PF Act. If you have 20 or more employees, then a PF code needs to be obtained, and deductions should be made accordingly. If no employee is to be covered because the basic salary is more than 6500, the company will submit a nil return, and only inspection charges will need to be deposited with PF.

The amendment regarding 10 employees has not been implemented yet. It was proposed, but no notification has been issued so far. Even contract employees who are attached to the company for just a single day should be covered under the PF Act.

Thank you.

J. S. Malik