We have got 2 firms (separate) and the employee details are as follows
1. IT Training firm
Total no: of employees is 8. Of this 7 are drawing less than 6500. Will ESI and PF be applicable?
2. S/w dev firm
Total no: of employees is 21. Of this 1 is less than 6500 and 4 are drawing between 6500 and 10000 and the rest all above 10000. Should we register for ESI and PF?
Some points regarding this.
a) The rule says 20 for not using power. IT firms use power. So is the no: 10 applicable for both the firms (for ESI & PF)?
b) If 20 is the count then can I put 2-3 from the s/w to the IT training firm rolls and escape both ESI and PF registration for the time being?
c) I heard that some firms take a written declaration from the employees saying that they do not need both ESI and PF. Is that valid?
Thanks in advance.
By rule for the first firm PF and ESIC are applicable.But as both the firms are yours definitely you can put some employees to the other firm and escape both.But be careful that accept resignation from the employees and then appoint them as afresh employee in other company.
As far as written declaration is concerned it not valid legally.Legally you need to have provisions for PF and ESIC for the employees who are having wage less than 6500
ESI is Not applicable to your both the firms.
With Power rule is for factories not for commercial Establishments.
So ESI is applicable to the establishments having 20 coverable employees under the act. So you dont have 20 coverable employees in both the organisations. For ESI present wage ceiling is Rs.10000/-
For 2nd Firm you need to cover under PF Act, if you want to reduce the PF burden you need not cover the employees who are drawing above 10000/-
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