Necessity Of ESI & PF

Sowmya Pillai
Hi All,
I worked in a small IT Company with a strength of 150 employees. But there was no ESI, PF, etc.. Just they were deducting PT and TDS from salary. Is it possible to skip PF and ESI in any company? Is it not mandatory to have PF & ESI? Please clarify my doubt..
Regards,
Sai Sowmya
sethupathy
Dear Sai Sowmya,
Once the workforce strength crosses 20. the organisation is coverable under EPF act.
However for ESI , the organisations with 10 or more people and within the limit of the notified area are coverable.
S.Sethupathy,
Erode
Sowmya Pillai
Hi Sethupathy,
Thanks for your reply.. Even i know that eligibility criterias for PF and ESI, my question is whether an organisation can skip these two like my previous organisation did?
sethupathy
Dear Sowmiya,
It is not possible to skip this. Even in the later years they will be issued with coverage notice ,then they have to pay the arrears also, from the date in which they have actually coverable.
Try to explain them
All the best,
S.Sethupathy,
Erode
Sowmya Pillai
Thanks Sethupathy.. Actually am not working there currently.. Its running for more than 3yrs and yet they dont have PF or ESI.. Recently when i went for few interviews i was asked for howcome there was no PF or ESI in a company of 150 strength. They just have PT and TDS..
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