How Can HR Balance Cost-Cutting with Educating Employees on PF and ESIC?

Hi, HR managers need to provide information and awareness about PF and ESIC to workers/employees. Management is reluctant about this, but wants me to focus on cost-cutting. What is the way out?

Hi Buddy,

I could say yes, it's one of the responsibilities of HR managers to make workers aware of the benefits and features of ESI and PF, such as how workers will receive sickness benefits and what kinds of withdrawals are available under PF.

Buddy, as an HR professional like us, we want to ensure that there is no compromise on welfare (statutory) areas. Cut costs in areas where it fits without affecting the morale of employees.

Thumbs up, Buddy.

Hi Kumaran Sir,

Thank you for your stance on statutory compliance. I also look forward to workers/employees being made aware of such good welfare facilities and encouraged to make the most of them. It can also help in retaining employees if the principal employers are diligently contributing to such regulations.

Thanks again for sharing.

Bijay

Understanding PF and ESIC Obligations

PF and ESIC are not optional; they must be provided as per the law. When your staff count exceeds 20, you are legally obligated to provide these benefits. Failure to comply will result in penalties as outlined in the PF and ESIC acts. It's crucial to educate the management on this matter.

Cut costs on variable expenses, not on welfare activities. Be ethical, striving for maximum compliance with labor regulations. Instead of saving, you might end up spending a significant amount of money and time resolving legal issues.

Regards