Navigating EPF and ESI: Should We Register New Employees on Probation?

Dear Senior,

We have a small company and are registered under EPF and ESI. Our total number of employees is 22 (Twenty). Currently, 20 employees have already registered with EPF as members, but 2 employees have not yet registered as they have recently joined on a probationary basis.

I have the following queries:

1. Are there any rules under EPF or ESI for unregistered employees?
2. Should we register them?
3. Is there a specific duration for the probation period?

Your assistance on these matters would be greatly appreciated.

Thank you

Membership of employees of PF & ESI starts from the date of joining based on the employee's rate of wages. Therefore, employees should be covered during the probation period. The duration of the probation period is mentioned in the standing orders act. Since the applicability of the act depends on your employee strength, please check this. Even if the act is not applicable, a six-month probation period will be reasonable for the employee to decide compatibility and the employer to decide role-fit.

Dear Sir,

Probation or confirmation is your internal matter. If you are covered under PF code, you have to register a new employee from day one. At the time of inspection, when the PF inspector sees your balance sheet and their salaries without PF deduction, then you will have to pay it with damages and interest. It is better to pay it today to avoid that, as inspections could occur after 5-6 years. Consider paying that much of interest and damages.

Thank you.

Dear Titan,

These Acts acknowledge only the term "employee"; they do not recognize the status, whether permanent, casual, temporary, badli, on probation, on contract, etc. Hence, you are required to cover them subject to eligibility.

Warm Regards,

Bharat Gera
HR Consultant