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Raj Kiran   27 January 2023

Is it now compulsory to register for epf?

One of our customers an Indian MNCs says they cannot enroll us as an approved supplier unless we register ourselves for EPF though we are less than 20 strength. Can anyone force it if we are below 20? 7 Is this mandatory? do we need to register compulsory and start submitting quarterly returns? Can someone deny us because of this reason? Any expert view? 



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 9 Replies

Sudhir Kumar, Advocate (Advocate)     27 January 2023

have you included your outsourced / daily wager and part time workers in this count.

Raj Kiran   27 January 2023

We don't have any daily wager or part time workers. We are below 10

kavksatyanarayana (subregistrar/supdt.(retired))     27 January 2023

If you are a member of EPF account you can contribute without your employer.

Sudhir Kumar, Advocate (Advocate)     28 January 2023

An employer employing less than 20 can also egistered with EPFO voluntarily (above 20 it is compulsory).  SO your cleint is not asking anything illegal to do.

In case he does not want to trade with you without EPF registeration No then you have no remedy.

Siddharth Roy   28 January 2023

Forcing one to register is against law of fundamental right when you are a free to join EPF or not as per Govt of India provisions. It is only voluntary and not mandatary till you have a strength of 20. Stopping trade because of this is illegal and not justified. They can only advise you and should not force you.  

Sudhir Kumar, Advocate (Advocate)     29 January 2023

You could have some cause of action fo damages, if (i) they started trade with you (ii) they abruptly stopped trade (iii) you faced losses due to this.

Given facts do not show any compulsion whereby they are bound to trade with you.

In given circumstances there appars to be hardly any remedy for you.  They havea right to trade with you or not to trade with you.

 

 

P. Venu (Advocate)     31 January 2023

Facts posted are strange. However, you cannot enforce a Fundamental Right against a private entity. You have a cause of action to seek damages if there is a concluded contract, not otherwise.

sahithi reddy   01 February 2023

If it is required above 20 employees, a firm with fewer than 20 employees may also voluntarily register with EPFO. Therefore, your client is not requesting anything against the law. If he refuses to trade with you without registering with the EPF, there is little you can do about it.

1 Like

Sudhir Kumar, Advocate (Advocate)     01 February 2023

Originally posted by : Siddharth Roy

Forcing one to register is against law of fundamental right when you are a free to join EPF or not as per Govt of India provisions. It is only voluntary and not mandatary till you have a strength of 20. Stopping trade because of this is illegal and not justified. They can only advise you and should not force you.  

 

 

Fundamental Rights are enforcable against state and not against foriegn/local client.  In case the cleint does not want to trade with him without EPF registeration (permissible) then he is free not to trade.  He cannot compell.


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