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NK (job)     07 November 2014

Pf esi

I have around 25 employees.My format is to give training first 6 months with stipend to candidates and then who are fit clear the test from client ,recruit them to permanently.

 

From above 25 people,15 are like trainee, who may be recruited or may not.So My question is I dont want to do PF formalities for these 15 trainees as they may not be recruited after training..So what is the way out?



Learning

 3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     07 November 2014

  • Employee is different and trainee is different, go through the narration of employee under this act.Is a trainee an "employee" under the Act?: The provisions of Section 2(f)(ii) of the Act and Para 2(f)(iv) of the Scheme framed under the Act are to be kept in mind while considering if a trainee is an employee or not. These provisions show that a trainee who is an apprentice engaged under the Apprentices Act, 1961 or who is an apprentice according to the certified standing orders applicable to the establishment is excluded from the definition of an employee under the Act.

     

  • If an Employer has equal to or more than 20 employees, it is mandatory for him or to join the Employee Provident Fund Scheme.
  • If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s)  with the consent of employer.

Jai Karan Nagwan (consultant)     19 December 2014

Please don't mind this is unfair labour practice, just naming them trainee does not make them trainees in the eyes of law. Trainees can be hired under apprentice act or under IESO, in any other situation they are employee and eligible for all benefits under labour law, wherein most critical is min wage issue. Here the employer is under serious compliance risk.

Kumar Doab (FIN)     21 December 2014

Agreed.

Trainee are recruited under Apprenticeship Act (as apprentice) or Management's standing orders.....

In place of indulging in unfair/illegal practices and getting penalized by EPFO it is better to provide::PF and ESIC and other statutory benefits....................... 

Either you are doing everything on your own or upon advise of an ill informed consultant......................

It is better to avail the services of an able Labor Law Consultant/law firm......

Registration with EPFO may cost as low as Rs7/month.....

 

You may meet PRO/APFC/RPFC in person in nearest PF office.......... 


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