How Can I Address My Company's Lack of ESIC and PF Benefits for Employees?

Dear All,

I am working in a company where the company does not pay ESIC & PF to the employees. My company is registered in Pondy, and in Chennai, we are not registered. Additionally, we are selling the product under three different company names. Apart from the salary, there are no other benefits for us, not even a cup of coffee or tea for the staff. Please guide me on how to address this issue. Do I need to consult with our MD? Without the MD's signature, not even a single pin can be released. This is very urgent.

Where should I file a complaint about this? Please guide me.

Awaiting your favorable reply.

Hi,

In your case, your company is functioning under three different names to save taxes. If the employees are also divided among these three companies, then you have to check the headcount. If the headcount in each company is more than 20, then PF and ESIC contributions are mandatory. Check whether your company is registered with PF or not. If you have the PF number for your company, approach your MD and inform them that failure to comply with the rules may lead to penalties, including imprisonment.

First, confirm whether you have a headcount of more than 20 (on-roll).

Try to convince the MD by illustrating the benefits of PF and ESIC. Since they are operating the company under three different names to save costs, emphasize that contributions to these schemes offer tax benefits. This approach will be advantageous.

Prepare a letter to apply for PF account openings for all employees. Obtain signatures from all employees and submit the letter to the MD. Ensure you retain an acknowledgment copy.

For other matters like facilities, follow a similar process. Once registered with ESIC, you can file a written complaint regarding poor employee welfare.

I hope this guidance is helpful. You can seek further assistance on citehr, where many experienced professionals can provide proper guidance.

Hi,

Even our company also does not pay ESIC and PF to our employees, and we have more than 60 employees. From here, we can conclude that it is MY DEAR COUNTRY, INDIA. Everything is possible; nothing is impossible in this country. So don't worry unless you are being paid at least the full salary and on time.

Thanks, Vineet Saini

Hi friends,

Many companies in India do not provide any facilities to their employees. In these companies, the Managing Director (MD) holds all the power. Therefore, if you oppose them, you risk losing your job. My company is a Limited family business. While we receive benefits like Provident Fund (PF), the ultimate authority lies with the management, specifically the MD. Their word is the rule. Additionally, we even have to pay for our own tea and coffees; the company does not provide anything. Numerous individuals have stood up against this, only to end up losing their jobs.

If you are interested in making a change, let us work together as a team.

Regards,
Uma.

What is the solution for PF and ESI? Where can we file and log the complaint?

Please guide me on whether it is possible to log a complaint against the employer.

Dear Kumaran,

First, check your appointment letter and CTC letter. Then, verify if your company is registered with the ESI and PF department or not. Only then can we provide you with perfect advice.

Regards,

Hi Vineet,

I don't agree with you. In this world, you have to fight for your rights. Don't expect people to come up to you and give you your rights. Why would a company like to increase their cost on you? But then you have to claim what you guys actually deserve, as per the law. If you let go of everything and be satisfied, and these laws hold no meaning, then it's for your good. Do I need to explain the benefits of ESI and PF to you?

Certain factors are to be taken into consideration. Check your company's incorporation, whether it is new or old. Verify PF and ESI Registration with ESIC or RPFC. Check how salaries are disbursed and whether proper documentation of salary details is recorded. Statutory compliance is a must. Assess how well your company is unionized. Raise any issues with government authorities confidentially. Request inspectors to visit your company for inspection. Precautions and tact are paramount in these cases. If you have the opportunity, explain the benefits of compliance in a positive manner. Advocate for the company's best interests. Your presentation is crucial.

Before taking action, thoroughly review the relevant Acts and consider consulting a labor advocate for advice. How you address this issue with your Managing Director is significant. It is advisable to first establish a strong interpersonal relationship with your MD.

I think Pondy is an exempted place where PF & ESIC are not applicable. You can have your own NPS account and even invest in a PPF account. You can have accident insurance and mediclaim insurance at the corporate level, which will save you by getting group discounts. In addition, you can have Superannuation whereby you contribute some amount and the employer an equal amount.

Dear Thiru,

First, you should check the regulations in Pondicherry. Every state has its own set of rules and regulations.

Sameer

This is off-topic. I know this is only a blog of sorts, but is there any need to post replies in SMS speak? We are all professional people, and it costs you no more time and effort to use proper English words. There are many members here for whom English is not their first language and find it difficult. Those of us who can use correct words have a duty to help others improve their skills. That is what sharing is about in a community like CiteHR.

John in Oz

Hello,

Deduction of PF is mandatory when the employee strength exceeds 20 and in ESI when the strength exceeds 10. The PF act applies to all parts of India except J&K, which has its own act. An employee has to be necessarily made a member of the PF scheme if his starting salary is Rs 6500 or less. In case you find that you should be a member as per the rule above, please log on to [EPFO](http://www.epfindia.com) and lodge your grievance there. You can also see addresses and contact numbers/email ids of Regional PF Commissioners whom you can either write to or meet. Any other queries on any aspect of social security are welcome.