Start Up Company - PF And ESI Is Mandatory Now?

MahaswetaHR
Hi All,
I have joined a new start up company in Kolkata, West Bengal
We are currently structuring rules and regulations, hence applying for all compliance related employement.
From my knowledge and understanding I knew that PF and ESI is mandatory now but our CA has a doubt on the same.
I am expecting experienced and respected HR can clarify my doubt.
Thanks in advance
Mahasweta Moitra
Labour Law Index
For ESI compliance see Employee's Covered under ESI Act, 1948 | Indian Labour Laws & Shram Suvidha Simplified

Also remember that the amount has increased from 15000 to 21000. See this for notification ESI Salary Limits Increased From 15,000 To 21,000. Effective From 01.01.2017 | Indian Labour Laws & Shram Suvidha Simplified

For PF see Universal Account Number (UAN) & Employee Provident Fund (EPF) : Rules, Procedure, Return, Claim & Updates. Also there is UAN related compliance mentioned.

There are other laws also that you need to see:

Gratuity Payment of Gratuity Act, Rules, Forms, Returns & All Other Information

Payment of wages and minimum wages Act

Shops and Establishment Act of your state

Factories Act along with Industrial Dispute Act
riteshmaity
As far as my knowledge goes, the Labour Ministry has asked not to cover or inspect startups for next 2-3 years. But once the period (2-3 years) is over, the company would be covered from date 1 of its incorporation. So it is advisable to get it started from the beginning.
You can personally visit the ESI and PF office for clarification.
SGMC
The applicability of different labour law to your establishment/company will depend upon the number of employees /workmen employed.

ESI - if the number of employees/workmen engaged including off roll employees (through contractors) is ten (10) and more the ESI Act is applicable. Those drawing gross salary /wages upto Rs.21000/- will fall within the net of ESI coverage

Provident Fund Act - if the number of employees/workmen including off roll employees (through contractors) is 20 and more PF Act is applicable. The present wage ceiling is Rs.15000/-

In addition the following Act is also applicable depending upon the number of employees/workmen

West Bengal Shops & Establishments Act

West Bengal Labour Welfare Fund Act

West Bengal House Rent Allowance Act

The Payment of Gratuity Act

The Payment of Wages Act

The Minimum Wages Act

The Payment of Bonus Act

The Maternity Benefit Act (if female employees are engaged but not covered under ESI Act)

The Sexual Harassment of Women at Work Place .....Act 2013 (if female employees are engaged)

With Warm Regards

P.S.Lakshmanan

S.G.Management Services

Kolkata

(M) 9831877248
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute