Navigating Employee Benefits: What Are My Legal Obligations as a Sole Proprietor?

Hi there, I am a sole proprietor and we have recently recruited one employee. I am not sure whether we have to consider PF and ESI. Also, I am unsure about how we can work out the holiday entitlement. Is there any law in place that we have to abide by for deciding annual leave, or is it subject to the decision of the firm? Do we have to provide sick leave? Do we have to provide house rent allowance, travel allowance, and medical insurance?

Employee Registration Requirements for ESIC and EPF

Up to 10 employees, you do not need to register for ESIC, and up to 20 for EPF. However, you can register voluntarily for EPF, but you can't do that for ESIC. Once you have registered for EPF, you cannot withdraw it back.

Business Details and Location

Please provide the details of what type of business you have and which state you are located in to get specific information on leaves and other welfare measures. This will help determine whether you should refer to the Factories Act or the Shops and Establishment Act.

Salary Structure Guidelines

You can follow the Minimum Wages Act and your state rules for framing the salary structure.

Hi, thanks for replying. The business is an admin office for a physiotherapy clinic based in the UK. It's a private firm, so are we allowed to provide any number of leaves we wish, or do we have to stick to the rules set by the government? Are there any other regulations we have to abide by?