Trainee Registration for Provident Fund (PF) Inquiry
I work in an IT company (Software Development) where we hire freshers for a trainee position for a duration of six months. During this probation period, we provide them with a stipend. Based on their performance in these six months, we select some trainees and offer them a job confirmation. Typically, around 40-50% of the trainees receive confirmation. For those trainees who do not get confirmed, we release them from the company's services.
Do we need to register all trainees in the PF, or only those whose services are confirmed in the company? Are they eligible for PF during the probation period?
Note: We do not provide them with a salary during these six months; only a stipend is given.
Please assist me with this query.
Thanks & Regards,
Sachin Vishwakarma
From India, Gandhinagar
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I work in an IT company (Software Development) where we hire freshers for a trainee position for a duration of six months. During this probation period, we provide them with a stipend. Based on their performance in these six months, we select some trainees and offer them a job confirmation. Typically, around 40-50% of the trainees receive confirmation. For those trainees who do not get confirmed, we release them from the company's services.
Do we need to register all trainees in the PF, or only those whose services are confirmed in the company? Are they eligible for PF during the probation period?
Note: We do not provide them with a salary during these six months; only a stipend is given.
Please assist me with this query.
Thanks & Regards,
Sachin Vishwakarma
From India, Gandhinagar
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Hi Sachin, In that case the trainees those who are confirmed they are only eligible for the PF that too after the confirmation. Regards, Divya V.
From India, Chennai
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1From India, Chennai
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In terms of the P.F. Act, an apprentice appointed under the Apprentices Act 1961 or a trainee appointed under Standing Orders is not eligible for P.F. contributions. Thus, I agree with Divya with a minor difference that those who are subsequently confirmed may be entitled to P.F. contributions from the date of joining (or even for the training period).
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Thank you very much, Mr. Sai Kumar and Ms. Divya,
One last query: we are a total of 29 people in the company, out of which 17 are permanent employees and 12 are trainees. Do we come under the provisions of the Employee Provident Fund Act or not?
Regards,
Sachin Vishwakarma
From India, Gandhinagar
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One last query: we are a total of 29 people in the company, out of which 17 are permanent employees and 12 are trainees. Do we come under the provisions of the Employee Provident Fund Act or not?
Regards,
Sachin Vishwakarma
From India, Gandhinagar
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The question of the applicability of P.F depends a lot on how you treat these trainees and other facts, though apparently trainees are excluded from the purview of P.F. Therefore, it is difficult to come to any finding based on the short facts furnished by you.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
Acknowledge(0)Amend(0)
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Provident Fund - Excluded Employee - Definition.pdf