Is it possible for employer to discontinue with EPF? Company crossed 20 employee mark and registered for PF. But as of now it has 10 employees and company doesn\'t wish to contribute towards EPF.
From India, Bangalore
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From India, Bangalore
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Hi Puja,
It is not possible to discontinue PF contributions even if the strength of the company falls below the specified range. Once PF is registered, it must and should continue even if the strength alters.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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28It is not possible to discontinue PF contributions even if the strength of the company falls below the specified range. Once PF is registered, it must and should continue even if the strength alters.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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Yes, please. No way out. Under section 1(3)(5), the establishment is to be governed by this Act. You have to deposit the dues in respect of the number of persons employed.
Chandok AK RPFC (Retd.) [Link removed]
From India, Chandigarh
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Chandok AK RPFC (Retd.) [Link removed]
From India, Chandigarh
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Mr. Chandok,
One of my friends has three separate establishments, all with different names, different shop registrations, separate accounts, separate tax registrations, separate premises, and separate directors; that is, with no functional integrity. I told him that the EPF Act is not applicable as none of the establishments have 20 persons on their payroll.
However, he wants to cover all employees of these establishments under EPF. Is it possible, and how can this be done?
Varghese Mathew
From India, Thiruvananthapuram
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One of my friends has three separate establishments, all with different names, different shop registrations, separate accounts, separate tax registrations, separate premises, and separate directors; that is, with no functional integrity. I told him that the EPF Act is not applicable as none of the establishments have 20 persons on their payroll.
However, he wants to cover all employees of these establishments under EPF. Is it possible, and how can this be done?
Varghese Mathew
From India, Thiruvananthapuram
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Dear Sir,
All depends upon the various tests laid down by the Supreme Court in the matter of the clubbing of establishments. The main criteria being functional integrality, interdependence, management, and transfer of employees. Whether the closing of one will result in the closure of all, etc.
As per the status provided by you regarding these establishments, prima facie, they are not clubbable. It will be difficult to convince him, but let him provide it in writing, and you represent your contentions in writing. Let the matter be decided by the RPFC under section 7-A. You must submit all your contentions favoring your case.
In case the RPFC decides against your contentions, file an appeal in the Appellate Tribunal, Delhi.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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All depends upon the various tests laid down by the Supreme Court in the matter of the clubbing of establishments. The main criteria being functional integrality, interdependence, management, and transfer of employees. Whether the closing of one will result in the closure of all, etc.
As per the status provided by you regarding these establishments, prima facie, they are not clubbable. It will be difficult to convince him, but let him provide it in writing, and you represent your contentions in writing. Let the matter be decided by the RPFC under section 7-A. You must submit all your contentions favoring your case.
In case the RPFC decides against your contentions, file an appeal in the Appellate Tribunal, Delhi.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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Dear Shri Chandok,
Here, there is no invocation of sec 7A. No authorities of EPF have asked him to cover these establishments, and there is no contention. It is the employer who has a common interest in these establishments, who is interested in covering all the three establishments together and wants to contribute his share for the employees, though each establishment does not have 20 persons employed. Then how can he cover all the employees under EPF? I have already told him that he is not legally liable. When many employers are trying to avoid EPF, this gentleman is ready to cover his employees even though he can very well evade it.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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Here, there is no invocation of sec 7A. No authorities of EPF have asked him to cover these establishments, and there is no contention. It is the employer who has a common interest in these establishments, who is interested in covering all the three establishments together and wants to contribute his share for the employees, though each establishment does not have 20 persons employed. Then how can he cover all the employees under EPF? I have already told him that he is not legally liable. When many employers are trying to avoid EPF, this gentleman is ready to cover his employees even though he can very well evade it.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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