Dear All,
Due to a shortage of skilled labor, we are planning to hire a few candidates as trainees for a fixed period. We will train them and, based on their performance, consider putting them on the company's payroll. Kindly let me know whether the trainee, under the company's policy or certified standing order of the company, comes under the purview of EPF and ESI.
From India, Bangalore
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28Due to a shortage of skilled labor, we are planning to hire a few candidates as trainees for a fixed period. We will train them and, based on their performance, consider putting them on the company's payroll. Kindly let me know whether the trainee, under the company's policy or certified standing order of the company, comes under the purview of EPF and ESI.
From India, Bangalore
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Trainees are those people who are taken into the organization to impart training to them. They must be there as part of a curriculum that asks for such training, like Industrial Training of ICAI/ICSI/CWA or apprentices under NCVT/ITI/SCVT. One cannot take any ad hoc person and call them a trainee. So, only if the above is true, then no PF or ESI applies. See this for the definition of an employee: [Employee's Covered under ESI Act, 1948](http://www.shramsamadhan.com/2016/10/employees-covered-under-esi-act-1948.html) and [Universal Account Number (UAN) & Employee Provident Fund (EPF): Rules, Procedure, Return, Claim & Updates](http://www.shramsamadhan.com/p/universal-account-number-uan-employee.html).
From India, Kolkata
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From India, Kolkata
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Dear Mohan,
All the persons being kept as trainees, either on a fixed-term basis, will come under PF & ESI. Perhaps your organization has standing orders, and one category of workmen is also defined as trainees, which mostly occurs. Therefore, you can engage people as per requirements, and after the stipulated time, you can pay off that fellow. However, you must ensure that the appointment advice specifies the period/tenure of engagement.
Thanks
From India
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All the persons being kept as trainees, either on a fixed-term basis, will come under PF & ESI. Perhaps your organization has standing orders, and one category of workmen is also defined as trainees, which mostly occurs. Therefore, you can engage people as per requirements, and after the stipulated time, you can pay off that fellow. However, you must ensure that the appointment advice specifies the period/tenure of engagement.
Thanks
From India
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PF Judgement - SC - Trainee - 2006.doc
ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf