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Smita (Service)     04 May 2009

PF Applicability on Expatriates (foreigners)

Dear All,

There are few foreigners working in our Company. Do we need to cover them under PF from Nov'08. We haven't started PF for them yet.

One of our employee is a french. What i understand from my sources is that,  there is a treaty between france and India but hasn't been notified by france yet. So should we cover the french employee as well.

Please advise.

rgds,

Smita



Learning

 2 Replies

A V Vishal (Advocate)     05 May 2009

Dear Smitha,

For purpose of P F, the act talks only about employees but not about their nationalities, hence all employees are covered by the act, but, since the salary they draw is more than the benchmark of Rs.7,500, they can opt voluntarily for the scheme its not mandatory to bring them in the ambit of P F coverage

manu (advocate)     05 May 2009

dear smitha,

yes, u have to extend the PF benifits to the foreigners working in your company.

SECTION 2f OF PF ACT reads "employee" means any person who is employed for wages in any kind of work manual or otherwise in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer and includes any person

(i) employed by or through a contractor in or in connection with the work of the establishment; 

(ii) engaged as an apprentice not being an apprentice engaged under the Apprentices Act 1961 or under the standing orders of the establishment; 

the expression 'any' used in the section includes all the employees of the company including the foreigners.

hence foreign workers are also equally entitled for PF benifits.

 

 


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