Hello Everyone, I am working for a subsidiary company, and the parent company is covered under PF. When we joined about 4 years ago, we were told we are not eligible for PF as the employee strength is less than 20. Now they are telling us that since we are a subsidiary company, it will be applicable to us from this year. Is this right or wrong? In that case, is the company obligated to pay for previous years with interest and not only for the current year?
Regards, Rajeev
From India, Mumbai
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Regards, Rajeev
From India, Mumbai
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Understanding PF Applicability for Subsidiary Companies
Being a separate entity with financial integrity and functional integrity is different from when the number of employees crosses the threshold of employability, which is more than 20. The PF Act becomes applicable in such cases.
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From India, Delhi
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93Being a separate entity with financial integrity and functional integrity is different from when the number of employees crosses the threshold of employability, which is more than 20. The PF Act becomes applicable in such cases.
Regards.
From India, Delhi
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Factors Affecting Subsidiary and Parent Company Relationships
It all depends on the subsidiary company's relationship with the main company, such as ownership, the line of business of the two companies, transferability of employees between the two companies, etc.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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It all depends on the subsidiary company's relationship with the main company, such as ownership, the line of business of the two companies, transferability of employees between the two companies, etc.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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PF Judgement - Bom HC - Temp employee.doc
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