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Ajeet Singh (Finance Manager)     08 July 2020

Epf & esic code surrender

Hi,

An LLP engaged in Retail activities due to pandemic entity like to reduce its cost and want to surrender PF & ESIC Code as the Total Numbher of employees reduced to 15 only.

As the entity want to resume its operations at reduced resources whether the entity eligible to Surrender its PF & ESIC Code.

Please guide me with reference of the relevant provision stated.

Thank You,



Learning

 5 Replies

G.L.N. Prasad (Retired employee.)     09 July 2020

File RTI Application and seek that information in individual Name from both the sanctioning authorities. 

Information solicited:

1. Please provide a copy of orders/circulars/notifications that state the process for surrendering PF  code

 

2.1. Please provide a copy of orders/circulars/notifications that state the process for surrendering    ESIC code

 

Before that search in google as they must have uploaded that important circular for use of public.

P. Venu (Advocate)     11 July 2020

To my knowledge, the company would be governed by the provisions of the scheme irrespective of reduction in the number of employees. 

1 Like

Ritesh Maity (Labour Law Advocate)     14 July 2020

"One covered, always covered"

In my opinion, if an organisation is already covered under the provisions of ESI Act and EPF&MP Act, it cannot get out of coverage. So your organisation remains covered but you pay contribution on the strength of your employees.

Pradipta Nath (Advocate)     15 July 2020

Once you are under the purview of ESI and EPF, irrespective of the reduction of employees, their contribution have to be remitted. So please consider cost cutting in some other areas and not on any welfare schemes.

Sudhir Kumar, Advocate (Advocate)     17 July 2020

Subsequent reduction of staff below 20 is no ground for de-coverage.  had it been so many big firms would have fraudulent reduced the strength.

 

Theft of statutory dues cannot be justified under sophistedcated term like "cost cutting".

 

So continue paying.

 

 


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