No Tags Found!

Dear Members,

Greetings.

Kindly provide a legal opinion on the following matter:

We have appointed a Manager on probation, and his basic salary is fixed at 20,000 (Gross is 41,000). He mentioned that as he was not a member of the PF in his previous company, he requests to be excluded from the PF here as well.

Is it possible to exempt him from PF membership even though he is on probation? Or is there a rule that mandates he must be covered under PF?

Kindly provide clarification.

Regards,
Nishant

From India, Ahmadabad
Acknowledge(0)
Amend(0)

Dear Members,

Greetings.

Kindly clarify for me the following:

We are appointing a person in our company where the place is under ESI coverage and deputing him to another place where the area is not covered under ESI. He will be permanently working there. So, will he come under ESI coverage or not?

Kindly clarify.

Regards,
Nishant

From India, Ahmadabad
Acknowledge(0)
Amend(0)

Dear Niashant,

There are two periods in ESIC - 1) Contribution period, 2) Benefit period. The Contribution period is from 1st April to 30th Sept. and 1st Oct. to 31st March, while the Benefit period is from 1st Jan to 30th June and 1st Jul. to 31st Dec. Please clarify whether the date of Deputation falls under the contribution period. If the employee has already made contributions, they will be covered under the benefit period of the preceding year.

Dear seniors, if I am mistaken, please correct me.

Thank you.

From India, Bhubaneswar
Acknowledge(0)
Amend(0)

Dear Srikant - You are talking about ESIC, whereas the question raised by Nishant pertains to PF.

Dear Nishant - Yes, you can show the member under the exempted category. Please ensure you take all details and get Form 11 filled by the individual.

Regards,
Murali

From India, Hyderabad
Acknowledge(0)
Amend(0)

Please clarify for me below:
Can we appoint staff in a direct contract basis? What is the difference between permanent and contract staff? How long will it be valid? Do contract staff have the right to join a union?

Thank you,
Nishant

From India, Ahmadabad
Acknowledge(0)
Amend(0)

Dear Nishant,

The PF ceiling is up to ₹15,000. Hence, if an employee's basic is ₹20,000, there is no requirement for PF deduction as he was not receiving it before as well. Just have the form filled out by him. Ask him to submit a letter for this. Above the ₹15,000 ceiling slab, it is the company's discretion to cover PF or not.

Contract staff work as per the contract agreement (appointment letter); their other benefits remain the same (i.e., leaves and other financial benefits). You have to include a clause in your appointment letter that will prevent them from joining any group or union.

I hope your questions are clarified.

Regards,
Mitali

From India, New Delhi
Acknowledge(0)
Amend(0)

Dear Mitali,

Thank you for the clarification, and just one more... Will there be any legal issue if a staff is employed on a contract basis for a very long period if we renew and keep him on a contract?

Regards,
Nishant

From India, Ahmadabad
Acknowledge(0)
Amend(0)

Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.