Can We Get PF/ESIC Exemption for a Closed Unit with Less Than 10 Employees?

Wolyarn
Hello Everyone, Thank you for reading my query. The facts are as follows:

1. Due to unavoidable circumstances, my unit was closed two years ago and remains closed.
2. The number of employees sanctioned is 100.
3. The maximum number of employees during the past 7 years has been less than ten.

Exemption from PF/ESIC

Is it possible for us to obtain an exemption from PF/ESIC or to eliminate PF applicability to our unit?

Please help.

Thanks,
SK Jain
Harsh Kumar Mehta
Sir, so far as coverage under the ESI Act, 1948 is concerned, Section 1(6) of the said Act provides that a factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.

Similar provisions exist in Section 1(5) of the Employees' Provident Fund & Misc. Provisions Act, 1952.

Hope you will see the above provisions of Acts in respect of the issue raised in the thread.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute