Hi Team,
A small org of about 18 permanent employees and around 20 contract employees. One person's pay is ~10 LPA, but there is no PF and gratuity components as part of pay.
Some Variable component is there and only 2 deductions - PT and TDS. The company says that PF is not applicable to them.
Is it possible that there is no PF and gratuity component in the above scenario?
Please help resolve my query.
Thanks
From India, Bangalore
A small org of about 18 permanent employees and around 20 contract employees. One person's pay is ~10 LPA, but there is no PF and gratuity components as part of pay.
Some Variable component is there and only 2 deductions - PT and TDS. The company says that PF is not applicable to them.
Is it possible that there is no PF and gratuity component in the above scenario?
Please help resolve my query.
Thanks
From India, Bangalore
Yes PF is not applicable to him but if he has worked for continuous 05 years in job then gratuity is compulsory. Goutam
From India, Vijayawada
From India, Vijayawada
How P.F is not applicable when the company is employing 38 persons? provided your establishment is one covered under Schedule I or covered by government notification.
B.Saikumar
Hr & labour law advisor
Mumbai
From India, Mumbai
1899B.Saikumar
Hr & labour law advisor
Mumbai
From India, Mumbai
How to know whether an establishment is covered under Schedule I or by government notification? The company says that they have not employed more than 20 employees on its permanent payroll and therefore PF is not applicable and also It is not a Pvt Ltd company.
Regards.
From India, Bangalore
Regards.
From India, Bangalore
Is your establishmnet is a facatory manufacturing some product and if so what is the product ? or is it a commercial establishment? if so what busines it is carrying on?
B.Saikumar
Hr & Labour Law advisor
Mumbai
From India, Mumbai
B.Saikumar
Hr & Labour Law advisor
Mumbai
From India, Mumbai
It is a small IT services company which serves other major IT companies through consulting, software development and staffing.
From India, Bangalore
From India, Bangalore
Dear Katz,
As you have mentioned that your comapny is a small company and total permanent employee is only 18 hence your organisation may not be included in PF organisation. Just confirm from the HR team/Admin Dept whether company is included in PF organisation.
Thanks and regards,
Pranab Chakraborty
From India, Mumbai
As you have mentioned that your comapny is a small company and total permanent employee is only 18 hence your organisation may not be included in PF organisation. Just confirm from the HR team/Admin Dept whether company is included in PF organisation.
Thanks and regards,
Pranab Chakraborty
From India, Mumbai
Dear Khatz,
Management may bluff anything? Can you accept this? May I know your designation? Whether there are direct employees or contract labour if there are 20 employees you must cover under the act. 18 permanent 20 contract workers so total is 38.so you must cover
v.subbarao
From India, Madras
Management may bluff anything? Can you accept this? May I know your designation? Whether there are direct employees or contract labour if there are 20 employees you must cover under the act. 18 permanent 20 contract workers so total is 38.so you must cover
v.subbarao
From India, Madras
Mr.Katz
The Central Government by a notification in 2006 has extended the application of P.F Act to the I.T Companies. Since your company has employed 38 persons including contarct labour, it needs to be covered under P.F Act.Trust, you stand sufficiently clarified now.
B.Saikumar
Mumbai
From India, Mumbai
The Central Government by a notification in 2006 has extended the application of P.F Act to the I.T Companies. Since your company has employed 38 persons including contarct labour, it needs to be covered under P.F Act.Trust, you stand sufficiently clarified now.
B.Saikumar
Mumbai
From India, Mumbai
Hi ,
As you have only 18 employees who are on rolls, your organisation cann't be registered under PF as the members must be 20 . In order to exempt this , your organisation has not recruited any permanent employees , rather they have hired some contract workers through an contractor , who shall pay the same to his employees through his own code if he had registered under PF .
regards / kumar
From India, Bangalore
As you have only 18 employees who are on rolls, your organisation cann't be registered under PF as the members must be 20 . In order to exempt this , your organisation has not recruited any permanent employees , rather they have hired some contract workers through an contractor , who shall pay the same to his employees through his own code if he had registered under PF .
regards / kumar
From India, Bangalore
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