How Can We Handle PF & ESIC Enrollment for Short-Term Employees in Hospitality?

Dear Seniors, I need your valuable feedback and help to deal with such cases. I am working in the hospitality industry and facing a problem regarding PF and ESIC. In this organization, the total number of employees is 200+, out of which only 50-70+ employees are registered under PF and ESIC. The management wants to extend these benefits of PF & ESIC to all employees who join. However, we are encountering an issue with lower-level employees whose basic salary is below 15,000. According to PF & ESIC rules, they should be enrolled, but these lower-level employees do not stay for a long time. They tend to leave without notice or resign after receiving their salary. In such cases, how can we enroll such individuals who do not work with us and resign within a year?

Is there any specific rule in PF to address such scenarios?

Thanking you in advance for your support and feedback.

Warm Regards,
Gaya

PF & ESI benefits are statutory, and the employer has to cover the employees if their wages are Rs. 15,000 or less from their date of joining, irrespective of their length of tenure of service in your company. There is no provision exempting such employees from coverage.

B. Saikumar

Dear,

You need to cover all the employees who come under PF & ESI. There should be no avoidance of complying with these mandatory regulations. Instead, provide training to employees who can work with you as sustainable resources. Explain to them the benefits they will receive if they stay with you for an extended period.

Thank you.