Navigating EPF and ESIC: Do You Need Factory or Shop Registration First?

Hi all,

Please let me know, is it mandatory to have Factory Act/Shop and Establishment registration to obtain registration in EPF and ESIC?

Any organization that has employed 10 or more employees is required to register for ESI, and if it has 20 or more employees, EPF registration is mandatory.

Thank you.

Sir,

I know about 10 employees for ESIC and 20 employees for EPF registration.

My query was to get registration in EPF & ESI, is it mandatory to have either registration in the Factory Act or in the Shop & Establishment Act.

It's not mandatory to have FA/S&CE registration. But these departments are interlinked; they will need to know the information from the ESIC or PF department. On the safer side, it's better to get it immediately after the code is obtained.

Yes, it is a must. You have to mention the Registration No. and date in the coverage application to get code No. for coverage for PF and ESI.

Sir,

Both of you have replied differently. Please tell me again, is it a must to have registration in the Shop & Establishment Act to get registration in EPF & ESI.

PF registration can be voluntary also, even in case employees are fewer than 10 or even if an establishment does not fall under the category of a factory/commercial establishment/shop. Unless coming under an exempt category or located in a non-ESI coverable area, ESIC registration is a must.

Understanding the Relationship Between Various Acts

There is no relationship between the EPF & MPs Act, 1952, the ESI Act, 1948, the Factories Act, and the Shop & Commercial Establishment Acts of the concerned states. The scope and coverage of these Acts are independent of each other. No comparison can be made except that if coverage is established under these Acts, compliance is compulsory, and non-compliance may result in the prosecution of the defaulting principal employer as defined in said Acts. There can be specific exemptions, such as in the case of the Maternity Benefit Act, 1961, and the Employees' Compensation Act relating to some matters/benefits available under the ESI Act, 1948.

Advice for the Original Poster

The person who raised this thread can go through the above Acts, and if there is any doubt, they can raise the same based on relevant sections and rules, etc. I feel that a comparison of different Acts is meaningless and of no use. There are various establishments that are covered or coverable under the Shop & Commercial Establishment Act (of the concerned state) as well as under the ESI Act, 1948, and the EPF & MPs Act, 1952. Even if a unit is not covered under the Factories Act, it does not mean that the said unit should not be covered under the ESI Act, 1948, or even under the EPF & MPs Act, 1952. Each department conducts its surveys or inspections independently, and non-coverage by any other department under any Act is not a relevant issue.

Respected all seniors. Many thanks to all for your valuable input. All of you have replied differently; therefore, I am still in confusion.

My query is if our organization is coverable in S & E Act. However, the organization is not registered under S & E Act. Please guide me as our organization is not registered under S & E Act despite being coverable. Please tell me, is it a must to have registration in S & E Act to get registration in PF & ESI?