Sunil 11 January 2018

Pf

I recently joined in a retailer company.Here company not paying PF and ESI?What would be risk will face by the company? And company can make own policy for PF and ESI( eg. If any person joins in the month of january then company will pay from the April not from the joining date.So like that policy can be enforcable.

Please explain me

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19 Replies

Kumar Doab (FIN) 11 January 2018

Hope you shall take it positively.

IT seems to be another employee that does not know what the matter at his hands is, and which forum to approach!

Have you been/are member of employee's/trade unions?

Kumar Doab (FIN) 11 January 2018

All details and enactments are available of Dept. of Labor of the state, EPFO,ESIC…..

e.g;

https://hrylabour.gov.in/

https://mahakamgar.maharashtra.gov.in/index.htm

https://mahakamgar.maharashtra.gov.in/acts-rules.htm

https://www.epfdelhi.gov.in/employeeaplicability.asp

https://www.esic.nic.in/coverage

https://www.epfindia.com/site_docs/PDFs/MiscPDFs/WageCeiling.pdf

https://www.epfindia.com/site_docs/PDFs/Circulars/Y2016-2017/Pension_Notification_GSR440(E)_10062016.pdf

https://labour.gov.in/sites/default/files/English_Annual_Report%202016-17.pdf

Kumar Doab (FIN) 11 January 2018

ESIC: Wage ceiling hikes over 20 years

—From Rs3,000 to Rs6,500: effective 1 January 1997.

—From Rs6,500 to Rs7,500: effective 1 April 2004.

—From Rs7,500 to Rs10,000: effective 1 October 2006.

—From Rs10,000 to Rs15,000: Effective 1 May 2010.

—From Rs15,000 to Rs21,000: Effective 1 September 2016.

https://www.clubhr.co.in/wp-content/uploads/2016/12/ESIC-Notification-on-21K-limit.pdf

ESI; Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

PF; Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.

Employing 20 or more persons .

https://www.timesnownews.com/business-economy/personal-finance/planning-investing/article/epf-cover-wage-at-rs-21000-may-become-a-reality-soon/138192

https://www.businesstoday.in/money/investment/now-your-pf-will-automatically-transfer-as-you-change-jobs-know-what-you-need-to-do/story/261022.html

Kumar Doab (FIN) 11 January 2018

Has the employer issued you offer/appointment letter, ID Card.......?

Relate the break up of your monthly salalry with provisions of wage celing in PF,ESIC.

Has your employer deducted PF from your salary and supplied Salary slip showing deduction?

Write to employer under proper coverage to provide PF (mention your previous PF number), ESIC coverage.

The designated person is under obligation to reply to you with reason for delay if any.

Keep all salary slips an communication with POD,carefully.

Sunil 12 January 2018

Employer was not dedcuting PF amount because of he wants to contribtor 13.61% to PF for that he was not willing to pay amount.However PF act will be applicable to My company.

Sudhir Kumar, Advocate (Advocate) 13 January 2018

The responses of Mr Kumar Doad do nto seem to be near the point raised by queriest. He hs simpy narrated that the company is having a policy to violace the provisions of law.

Kumar Doab (FIN) 13 January 2018

The purpose and post of Mr. Sudhar Kumar does not seem to be near the essence and spirit of query raised by querist and responses to querist.

To help the querist links to enactments and rpovisions have been provided.

Kumar Doab (FIN) 13 January 2018

After the surrounding provisions of applicable enactments are posted the querist has posted unclear response on some 13.61%, and IT is still not clear what is IT and who want this %; querist or employer and why……and why from said future month only and not upon joining.

Kumar Doab (FIN) 13 January 2018

Dear Mr. Sudhar Kumar,

The proper title is Mr. Kumar Doab and not Mr. Kumar Doad!

Kumar Doab (FIN) 13 January 2018

The querist has posted;

“Employer was not dedcuting PF amount because of he wants to contribtor 13.61% to PF for that he was not willing to pay amount.However PF act will be applicable to My company.”

Except that after going thru information and links posted by Shri Kumar Doab the querist has affirmed that PF is applicable to establishment, nothing else is still clear.

If establishment is covered by enactment(s) then IT has to cover the eligible employees, deduct employees’ contribution and deposit by adding employer’s contribution.

The querist may as already suggested write under proper acknowledgment to designated official/employer of current establishment about his previous PF, ESIC number and provide coverage to him and reply to him in writing.

The querist has not responded to any point raised so far.

Probably the employer has not issued any offer/appointment letter, salary slip and may be even ID card and/or querist may not be even having attendance record….. or may not have been provided with requisite HR forms for PF,ESIC,Gratuity, Group Insurance etc etc …

The designated official/employer is under obligation to reply to querist whether he is eligible or not and respond on said %................

Likewise other employees can inquire with establishment/employer…in writing and under proper acknowledgment.

Based on response by querist so far IT shall be too early to say establishment is violating the Act(s) or not!

Assuming that IT is violating the links to the enactments have already been posted.

Querist is at liberty to act further.

However to build irrefutable record querist should write gentle communication as already suggested and remain amiable in office.

If establishment/employer is a violator of rights of employee(s) IT shall be futile to continue in employment with such establishment and employer and firm up next venture ASAP with employer that has good HR practices.