Trainee Period Dilemma: Should Companies Offer PF and ESIC Benefits? What Are the Legal Implications?

Respected All, The question is: If an organization is hiring candidates on a training period for 3 or 6 months (apart from freshers and apprenticeship), should the company provide them with PF and ESIC facilities? If yes, what are the legal remedies? If no, are there any legal remedies? Can the compliance officer take any action against this?

Hi, If the trainees are hired as employees, then you need to deduct PF/ESI. However, if you are hiring interns (as part of their curriculum, students are supposed to undergo training in their specialization area for a stipulated time frame), then PF/ESI deduction will not be required. But students should be hired through colleges with proper backup like a letter from the college. Once the internship is completed, the organization should issue an Internship completion letter.

Hi, you should deduct PF/ESI for employees in the experienced category.