is there any mandate that the ratio of employees to trainees is 60:40 Pl advise for e.g in our company we have 20 permanent employees and 50 trainees and the trainees are appointed under standing order.PF commr saying that trainees are not proportionate to employees and we have to pay PF for all trainees.what to do is there any mandate that the trainees should be proportionate to employees
From India, Madras
Dear Mr. Sanjay, I havent understood your query. Can you please elaborate. Kindly support by example as well. with profound regards
From India, Chennai
Dear sanjay Exact what ratio would you want to describe whether it is Employees : Trainees or it is Trainees : Employees Please Clarify it Warm Regards, Hrushikesh
From India, Sholapur
i would like to know whether pf to be paid to trainees if employees are less and trainees are more.is there any hard and fast rule about the proportion of trainees?company is having a certified standing order
From India, Madras
Dear Mr. Sanjay
There is no harm in paying PF to TRAINEES irrespective of the RATIO. If your company decides to pay PF to trainees then, this will help your trainees to get motivated and perform better..
With profound regards

From India, Chennai
that was not my querry we are not paying PF for trainees.but commr saying that trainees are more than that of permanent employees hence we must pay PF
From India, Madras
Dear Mr. Sanjay,
Follow what PF COMMISSIONER says. Labor law is always in favor of employees and supports organisations to an extent as well. Do not try to avoid LABOR LAW and try to save. Later, its your company who has to face consequences.
With profound regards

From India, Chennai
Dear Mr. Sanjay,

P.F. is applicable on trainees (except engaged under the Apprentices Act, 1961). Please refer to the definition of "employee" under the Employees' PF and Misc. Provisions Act, 1952, which I am quoting herein below:

"Section 2 (f):
'employee' means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets, his wages directly or indirectly from the employer, and includes any person,-
(i) employed by or through a contractor in or in connection with the work of the establishment:
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), or under the standing orders of the establishment."

I have not come across or heard of any such legal mandate that fixes proportion of trainees vis-a-vis permanent employee. Employers normally plan recruitment of trainees to groom them imparting on-the-job training so as to absorb them on regular employment on successful completion of their training against normal vacancy as well as against the replacement vacancies created by employees' turnover. Number of trainees are normally determined in the annual HR Budget considering the scope of work, projected manpower requirement and the annual employees' turnover rate.

However, whatever be the number of trainees and their proportion vis-a-vis regular employees, the legal provision is very clear that the EPF and Msc. Provisions Act, 1952, is applicable on them from the day-1 of their employment.

Hope this would be sufficient to clear your doubt over the applicability of PF on trainees.

Please also go through the Sections 14, 14A, 14AA, 14 AB, 14AC of the PF & MP Act, 1952, that would give you a comprehensive idea of the penal provisions in case of default / offence by the employer.

Sincerely,

Vijayanta Kumar Sinha

From India, Chaibasa
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