Dear all,
Recently, my CFO asked me to obtain a letter signed by all employees of the company stating that they do not wish to subscribe to the EPF Act 1952, and therefore do not opt for any deductions under the aforementioned act. Is this legal? Can such a letter exempt us from PF registration? The employee strength in my company is 60.
Regards,
Komal
From India, Delhi
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Recently, my CFO asked me to obtain a letter signed by all employees of the company stating that they do not wish to subscribe to the EPF Act 1952, and therefore do not opt for any deductions under the aforementioned act. Is this legal? Can such a letter exempt us from PF registration? The employee strength in my company is 60.
Regards,
Komal
From India, Delhi
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If there are 20 or more employers, coverage of EPF is mandatory. The employees cannot say that they do not want to get covered by EPF. When it is not possible even for voluntary opting out of the scheme, the question of employer compelling the employees to sign a memorandum to opt out of the scheme will not arise at all. It is unfair and illegal. Yes, there is one option; if the employer does not want the employees to contribute towards EPF, then the employer alone can contribute 24% plus all administrative charges!!! Madhu.T.K
From India, Kannur
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4526From India, Kannur
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Employee Provident Fund and MP Act, 1952.pdf
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt