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!
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.
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.
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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