Navigating PF and ESI for Growing Companies: Where Do I Start with Statutory Norms?

Hi, I work as an HR in one of the companies. The employee strength is around 150 and is on an increasing trend. The management has approved PF and ESI. Having said that, I would like to know about statutory norms such as PF, ESI, etc. I need A to Z information about PF and other related matters. How do we get these things started?

Regards,
Savitha M S

As you mentioned, your total employee strength is 150. I hope you have not delayed in enrolling with ESI & PF. You should immediately register with both. With an employee strength of 150, many laws will be applicable.

Industry Type Inquiry

I would like to know the type of industry. Have you enrolled with the Shops Act or Factories Act? Have you enrolled with PT?

Learning all the acts can happen slowly only. You may have to put a lot of effort to learn and implement.

Regards

It is irrespective of your management approval. If the employees' headcount is more than 10 with the aid of power or 20 without the aid of power (Factory definition), PF will be applicable even if your management is not ready to give the approval because it is statutory to implement. In the same way, ESI too, but ESI coverage must be there to get the ESI registration. This is because a few newly formed SEZs will not be covered under ESI as the ESI facility has not yet started in that surrounding location.

Thorough Understanding of PF and ESI Acts

If you want A to Z information, I suggest you read the PF and ESI acts thoroughly. Once you go through them, you will have lots of queries to post where we can have reviews and expert suggestions from HRs.

Clarification on ESI Act Applicability

1. The implementation or applicability of the ESI Act, 1948, has no connection or concern with the concept of Special Economic Zones. Therefore, it is incorrect to suggest that "because a few newly formed SEZs will not be covered under ESI." However, before submitting an application for the issuance of a Code Number, it can be confirmed whether the area where the factory or unit is located is an implemented area, i.e., an area for which a notification has been issued under section 1(3) of the said Act.

2. Such information can also be obtained from the nearest office of the ESIC.

Subject to confirmation from you regarding the status of your company, I would suggest the following:

Assessing Your Administration

1. What is the status of your administration? Do you have enough employees experienced in this area to manage and assist you? Typically, you would require a team of about 5 to 10 personnel to handle the requirements.

Are you in a managerial capacity or an HR executive seeking guidance from your superiors? If you are empowered to proceed independently, there should be no problem as CiteHR has abundant materials and experts to guide you. Alternatively, there are many consultants in Bangalore who can manage your requirements, eliminating the need for your own team.

For knowledge purposes, utilize the search option on these pages to find guidance for all your queries. There is a wealth of information available here.

Compliance and Timeliness

2. It's already late. When was your company established, and when did the employee strength cross 10 or more? You need to catch up on all pending work to avoid penalties.

All the best.

I didn't mean that there is a connection between the concept of SEZ and the ESI Act. If there is no coverage of ESI in the location where the firm is situated, then they are not entitled to ESI benefits until ESI coverage is provided.

I used the example of SEZ because, for instance, Brandix located in SEZ - Atchutapuram-Vizag, does not have ESI coverage. It may still be in the process of obtaining coverage, or it may have received coverage in recent months (I do not have this information as I have left my previous organization).

By the way, your information regarding "before submitting an application for the issue of a Code Number, it can be confirmed whether the area where the factory or unit is located is an implemented area i.e. an area for which a notification has been issued under section 1(3) of said Act?" is informative to me.