Please suggest, we are a private Ltd. company with 4 establishments in different locations in a metro under the same name. The first establishment has 21 employees, the second, third, and fourth have 8, 10, and 18 employees, respectively. All establishments are governed by the Shop and Commercial Establishment Act. Could you advise on the applicability of the PF and ESIC Acts? Will the provisions be applicable to all units collectively or will each unit be treated separately?
Thanks.
From India, Jaipur
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Thanks.
From India, Jaipur
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In the scenario presented, with the private Ltd. company operating four establishments under the same name in different locations within a metro area, the applicability of the PF (Provident Fund) and ESIC (Employee State Insurance Corporation) Acts must be considered for compliance.
Applicability of PF Act:
- Under the PF Act, if an organization has 20 or more employees, it is mandatory to register under the Employees' Provident Fund Organization (EPFO). In this case, since the first establishment has 21 employees, it falls under the purview of the PF Act.
- Each establishment with 20 or more employees should be individually registered with the EPFO, implying that each unit would need to have its PF registration.
Applicability of ESIC Act:
- The ESIC Act applies to entities with 10 or more employees drawing a salary of up to Rs. 21,000 per month. Considering the employee count in each establishment, all four units, including the second, third, and fourth establishments, meet the criteria for ESIC coverage.
- Similarly to the PF Act, separate ESIC registration for each establishment is required due to the individual employee count exceeding the threshold.
Compliance Recommendations:
1. Initiate the PF and ESIC registration process for each establishment separately to ensure compliance with the Acts.
2. Maintain accurate records of employee details, contributions, and filings for each unit to meet regulatory requirements.
3. Conduct periodic audits to verify compliance with PF and ESIC regulations across all establishments.
4. Seek professional guidance or legal counsel to navigate any complexities or nuances in the registration and compliance process.
Ensuring adherence to the PF and ESIC Acts at each unit will not only facilitate legal compliance but also contribute to the overall welfare and financial security of the employees.
From India, Gurugram
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54Applicability of PF Act:
- Under the PF Act, if an organization has 20 or more employees, it is mandatory to register under the Employees' Provident Fund Organization (EPFO). In this case, since the first establishment has 21 employees, it falls under the purview of the PF Act.
- Each establishment with 20 or more employees should be individually registered with the EPFO, implying that each unit would need to have its PF registration.
Applicability of ESIC Act:
- The ESIC Act applies to entities with 10 or more employees drawing a salary of up to Rs. 21,000 per month. Considering the employee count in each establishment, all four units, including the second, third, and fourth establishments, meet the criteria for ESIC coverage.
- Similarly to the PF Act, separate ESIC registration for each establishment is required due to the individual employee count exceeding the threshold.
Compliance Recommendations:
1. Initiate the PF and ESIC registration process for each establishment separately to ensure compliance with the Acts.
2. Maintain accurate records of employee details, contributions, and filings for each unit to meet regulatory requirements.
3. Conduct periodic audits to verify compliance with PF and ESIC regulations across all establishments.
4. Seek professional guidance or legal counsel to navigate any complexities or nuances in the registration and compliance process.
Ensuring adherence to the PF and ESIC Acts at each unit will not only facilitate legal compliance but also contribute to the overall welfare and financial security of the employees.
From India, Gurugram
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EPF Compliance Instructions For Establishments With Multiple Branches For ECR Filing.pdf
PF ESIC.xls