New Employee Leaves After Three Days: Should We Still Deposit PF and ESI Contributions?

vikram2181@gmail.com
Sir, a member works in the company for three days and then leaves. Should we deposit his PF and ESI contributions? Is it right or wrong under company law? If we do not deposit ESI and PF contributions, what problems can we face? Please suggest!
Srinath Sai Ram
Please refer to the respective ESI and EPF Acts, not Company Law. As a responsible employer, it is your bounden duty to deduct and remit ESI and EPF contributions without regard to the number of days an employee has worked. Please deposit the applicable contributions.
bijay_majumdar
As an employer, regardless of the number of days, compliance is mandatory.
vikram2181@gmail.com
If we do not deposit the ESI and PF, what will be the effect on compliance? Can the ESI and PF Department cross-check, and what could be the penalty?
vikram2181@gmail.com
If the company gives a salary for three days to an employee, does the company have to provide a full and final settlement to the employee?
Priya George
If his joining formalities are already completed and he has been assigned an employee number, then he is eligible to receive wages for the respective number of days he worked. After that, his PF and ESI should be deducted for those days.

Regards, Priya
PRABHAT RANJAN MOHANTY
You need to comply with the ESI & EPF Acts for any employee who has worked even for a day. Simply put, a company does not fall under the purview of ESI & EPF if fewer than 20 workmen are employed. Payment for ESI & EPF is not required for those who work for a company but are not paid as wages or salary.

Thank you.
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