An employee comes under PF and ESI limitation but he is not willing to contribute to it. is it legal. i hope my friends will help me finding a solution Regards ANU
From India, Kochi
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From India, Kochi
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Dear Anu,
Please understand that it is a law and cannot be relaxed for anyone's willingness. If an employee is working and receiving a salary, even daily wages, they should be covered under PF & ESI as applicable to the Act. So, please do not entertain such employees.
Regards,
SIDMAN
From India, Madras
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2Please understand that it is a law and cannot be relaxed for anyone's willingness. If an employee is working and receiving a salary, even daily wages, they should be covered under PF & ESI as applicable to the Act. So, please do not entertain such employees.
Regards,
SIDMAN
From India, Madras
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Dear Anu,
The Employees' Provident Fund and Miscellaneous Act 1952 and Employees' State Insurance Act 1948 are Social Security Legislations. It is the obligation of the society/authorities to ensure that these legislations are being implemented. The willingness of an employee is immaterial in this regard.
Abbas. P. S.
From India, Bangalore
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The Employees' Provident Fund and Miscellaneous Act 1952 and Employees' State Insurance Act 1948 are Social Security Legislations. It is the obligation of the society/authorities to ensure that these legislations are being implemented. The willingness of an employee is immaterial in this regard.
Abbas. P. S.
From India, Bangalore
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Dear Anu,
Please note that, as of now, if an employee's basic salary + DA is above Rs. 6500/-, then there is no need to enroll him as a member provided he is not an existing member. As far as ESI is concerned, if the total monthly salary is Rs. 15,000/- and below, then he has to be a member.
Trust you have understood. If you have any doubts, please post your comment to me.
Thanks & regards,
Gopalakrishnan
Head HR
From India, Madras
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Please note that, as of now, if an employee's basic salary + DA is above Rs. 6500/-, then there is no need to enroll him as a member provided he is not an existing member. As far as ESI is concerned, if the total monthly salary is Rs. 15,000/- and below, then he has to be a member.
Trust you have understood. If you have any doubts, please post your comment to me.
Thanks & regards,
Gopalakrishnan
Head HR
From India, Madras
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Dear Anu,
Mr. Abbas and Mr. Gopalakrishnan have stated the facts relating to your query. To add one more point, even as an employer, you do not have the option to exclude members. If the scheme promoted by you is far superior to the Act, then you need to convince the authorities and seek exemption. However, this is far from reality because all the social legislations are formulated by the government considering the best benefits that can be provided to individuals. In short, you have to abide by the law, and neither the employer nor the employee has a choice if they are covered under the provisions of the respective acts.
Regards,
M.V. Kannan
From India, Madras
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Mr. Abbas and Mr. Gopalakrishnan have stated the facts relating to your query. To add one more point, even as an employer, you do not have the option to exclude members. If the scheme promoted by you is far superior to the Act, then you need to convince the authorities and seek exemption. However, this is far from reality because all the social legislations are formulated by the government considering the best benefits that can be provided to individuals. In short, you have to abide by the law, and neither the employer nor the employee has a choice if they are covered under the provisions of the respective acts.
Regards,
M.V. Kannan
From India, Madras
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Dear all,
My above posting is in response to the query regarding an unwilling individual to contribute to EPF & ESI. If employees are provided with better facilities than ESIC, at the request of both the employer and employees, such organizations may be granted exemption from the operation of the ESI Act.
For the existing exempted organizations, the time to apply for exemption was a minimum of one month before the expiry date. Now, after the 2010 amendment, this period has been extended to three months.
I would like to quote from the Key Notes published by TAXGURU, the leading tax consultant website, on 3rd September 2010 regarding this matter:
"9. Exemption of a factory or establishment or class of factories or establishments from the operation of this Act will be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act. It has also been provided that the application for renewal of exemption shall be made three months before the date of expiry of the exemption period, and a decision on the same will be taken by the appropriate Government within a period of two months of receipt of such application. (new proviso added to section 87 of the Act)
10. Exemption granted to a factory or establishment from the operation of this Act shall be prospective and not retrospective as per section 91 of the Act."
Abbas.P.S
From India, Bangalore
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My above posting is in response to the query regarding an unwilling individual to contribute to EPF & ESI. If employees are provided with better facilities than ESIC, at the request of both the employer and employees, such organizations may be granted exemption from the operation of the ESI Act.
For the existing exempted organizations, the time to apply for exemption was a minimum of one month before the expiry date. Now, after the 2010 amendment, this period has been extended to three months.
I would like to quote from the Key Notes published by TAXGURU, the leading tax consultant website, on 3rd September 2010 regarding this matter:
"9. Exemption of a factory or establishment or class of factories or establishments from the operation of this Act will be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act. It has also been provided that the application for renewal of exemption shall be made three months before the date of expiry of the exemption period, and a decision on the same will be taken by the appropriate Government within a period of two months of receipt of such application. (new proviso added to section 87 of the Act)
10. Exemption granted to a factory or establishment from the operation of this Act shall be prospective and not retrospective as per section 91 of the Act."
Abbas.P.S
From India, Bangalore
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Hello Anu,
Mr. Abbas is right. As an employer, you cannot leave it to the discretion of an employee. If, as per the act, an employee should be covered under the provisions, he/she cannot deny the same.
Shivendra
From India, Gurgaon
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Mr. Abbas is right. As an employer, you cannot leave it to the discretion of an employee. If, as per the act, an employee should be covered under the provisions, he/she cannot deny the same.
Shivendra
From India, Gurgaon
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Hi,
Please provide the process/procedure to get an exemption from ESIC: "With the request of the employer and employees, such organizations may be granted exemption from the operation of the ESI Act."
Regarding PF, we can enroll the employees whose basic salary + DA is more than Rs. 6,500 under the condition that the employer is willing to pay an administration charge for the same. For this, a voluntary undertaking needs to be submitted to the PF office with the attestation of the employer.
Thanks
From India, Mumbai
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Please provide the process/procedure to get an exemption from ESIC: "With the request of the employer and employees, such organizations may be granted exemption from the operation of the ESI Act."
Regarding PF, we can enroll the employees whose basic salary + DA is more than Rs. 6,500 under the condition that the employer is willing to pay an administration charge for the same. For this, a voluntary undertaking needs to be submitted to the PF office with the attestation of the employer.
Thanks
From India, Mumbai
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Dear Abbas, What is the procedure to get exemption from ESIC act. Pl explain in detail Regards Radha
From India, Hyderabad
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From India, Hyderabad
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It is a statutory obligation on the part of the employer as well as the employee. One cannot avoid it if the employee desires to be a permanent employee to avail benefits like Bonus, Gratuity, encashment of earned leave, etc., including PF and ESI.
On the other hand, the employer is liable for prosecution for not extending the benefits to this individual. Please note and advise accordingly.
Regards
From India, Hyderabad
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On the other hand, the employer is liable for prosecution for not extending the benefits to this individual. Please note and advise accordingly.
Regards
From India, Hyderabad
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Hi All,
I have one question for all of you. I'm working in a company that is into RPO operating in Hyderabad. Here, management has stopped providing PF and ESI to the employees and is not even following the statutory rules of Indian legislation acts (Factories Act). Is there anything I can do to protect our interests in the company? Please suggest to me on this issue.
Thank you,
Arun
From India, Hyderabad
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I have one question for all of you. I'm working in a company that is into RPO operating in Hyderabad. Here, management has stopped providing PF and ESI to the employees and is not even following the statutory rules of Indian legislation acts (Factories Act). Is there anything I can do to protect our interests in the company? Please suggest to me on this issue.
Thank you,
Arun
From India, Hyderabad
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Dear Sir,
An employee comes under PF and ESI limitations but is not willing to contribute to it. Is it legal? I hope my friends will help me find a solution.
Regards,
ANU
It is a statutory requirement under the EPF & ESI Act that if the company is covered under EPF or ESI or both by exceeding the quantity of total employees mentioned in the respective Act, it is necessary that the employee should be covered under EPF & ESI.
Thanks & Regards,
N. RANGARAJAN
From India, Madras
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An employee comes under PF and ESI limitations but is not willing to contribute to it. Is it legal? I hope my friends will help me find a solution.
Regards,
ANU
It is a statutory requirement under the EPF & ESI Act that if the company is covered under EPF or ESI or both by exceeding the quantity of total employees mentioned in the respective Act, it is necessary that the employee should be covered under EPF & ESI.
Thanks & Regards,
N. RANGARAJAN
From India, Madras
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As per the law, it is compulsory, and my suggestion is to call him personally to your chamber to explain the advantages of contributing to PF and ESIC. Make him understand that it will be very useful in the future; for example, he can get a loan in the future from PF when needed, and the medical and other benefits of ESIC for him as well as his family. I hope that if you go ahead with this suggestion, you will be successful.
Clearing the doubt and helping to get rid of the obstacles in mind will enable everyone to cope with the situation and understand undisturbed.
With regards,
Dharaneesh Kumar.V
HR/Admin Executive
From India, Bangalore
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Clearing the doubt and helping to get rid of the obstacles in mind will enable everyone to cope with the situation and understand undisturbed.
With regards,
Dharaneesh Kumar.V
HR/Admin Executive
From India, Bangalore
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Hi, I have joined in an organization as an HR.To how many members we can manage with PF i.e max employee limit for a company for providing PF.
From India, Hyderabad
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From India, Hyderabad
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Dear Anu,
Mr. Gopalakrishnan is correct, i.e., ESI is mandatory if he or she is receiving Rs. 15,000 or less as gross salary, and PF is optional if the salary is greater than Rs. 6,500 (Basic + D.A).
Regards,
Lalit Papnoi
Manager HR
From India, New Delhi
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Mr. Gopalakrishnan is correct, i.e., ESI is mandatory if he or she is receiving Rs. 15,000 or less as gross salary, and PF is optional if the salary is greater than Rs. 6,500 (Basic + D.A).
Regards,
Lalit Papnoi
Manager HR
From India, New Delhi
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Here the matter of an individual, within the wage limits for coverage, is being discussed. Whether an individual can refuse to subscribe to the EPS/ESI.
The answer is a BIG NO. If an organization is covered under EPF/ESI, there is no escape route. The onus is on the employer. The employer will face consequences in case of any violation of the law.
From India, Chandigarh
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The answer is a BIG NO. If an organization is covered under EPF/ESI, there is no escape route. The onus is on the employer. The employer will face consequences in case of any violation of the law.
From India, Chandigarh
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Dear All,
Congratulations to all of you for sharing the best information on the captioned subject. Rules are made for the betterment of society. It is in the interest of all to abide by its guidelines. People often think of short-term gains by avoiding contributions to EPF/ESI. We should make them aware of the benefits and social security it provides.
Thank you,
Harmit Singh Arora
From India, Ludhiana
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Congratulations to all of you for sharing the best information on the captioned subject. Rules are made for the betterment of society. It is in the interest of all to abide by its guidelines. People often think of short-term gains by avoiding contributions to EPF/ESI. We should make them aware of the benefits and social security it provides.
Thank you,
Harmit Singh Arora
From India, Ludhiana
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
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