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ybhatt (n/a)     23 December 2010

Applicability of PF act to Trainee

Can PF to be deducted from stipend of Trainee? as per PF act if Trainee taken under certified Standing Orders it will not applicable. Latest Supreme court judgment would be appriciated in this regard. but PF inspectors usually insists employers to be deduct from trainee.

Experts please clarify the legality in this matter.



Learning

 8 Replies

ybhatt (n/a)     24 December 2010

Dear Experts

Please give your valuable advise .

Rashmita Saikia (Lawyer)     27 December 2010

What is the procedure if a new joiner does not want to have PF? He is elligible for PF but he just does not want that. Is there any procedure or to file any Form with PF office?

ybhatt (n/a)     06 January 2011

Dear Experts request to please post your valuable comments.

mahesh pandey (Vice President)     06 January 2011

Hi..

P F will not be applicable & it will not be deducted from stipend paid 2 Trainees under certified standing orders of the company/ establishment but u have 2 prove 2 inspectors with documents ,viz, copy of certified standing orders of the establishment, copy of training scheme( not required if such training scheme is incorporated in the certified standing orders), appont ment  letter of trainee, then inspectors will be satisfied.

There is no choice or option 2 become / not to become P F member. If u are an employee under the provisions of the employees P.F.& Misc. provisions act, 1952 & scheme made thereunder then u will have 2 be member of P F.

Girish Patwardhan (advocate )     08 January 2011

In fact the problem starts when employers appoint only 10 permanent employees and rest all the employees are shown to be trainees . In the matter of NEPC Vs. RPFC the High Court highlighted this aspect. But  if really a scheme of training is framed and followed then there is no why anybody is required to pay contribution in respect of a trainee.

Girish Patwardhan (advocate )     08 January 2011

my answer to the question viz : What is the procedure if a new joiner does not want to have PF? He is elligible for PF but he just does not want that. Is there any procedure or to file any Form with PF office?

It is not sweetwill and choice of any employee to be a member or not . By default he is employee and subscriber to the PF . 


 

Sahana (Accounts Assistant)     13 January 2011

Does trainee include an articled clerk of Chartered Accountant office.

Kindly reply.

Regards

Sahana Murthy

Mallik Karra (Done with AIBE)     13 January 2011

In a judgment of Supreme court in the case of RPF Commissioner Vs. Central

Aercanut and Coca Marketing and Processing Co-operative Ltd., reported in 2006

FLR (108) SC 805: held that even the standing orders were not certified in terms

section 12 (A) of the Act, the model standing orders are applicable. The model

standing orders defines an apprentice as a learner who is paid allowances during

the period of training. Therefore, the trainees are not covered under the P.F.Act


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