Dear Saket,
Greetings!!!
From an owner's perspective, your concern is pretty valid. However, you need to understand that these are in-built costs for a business and you must account for this cost, irrespective of market conditions.
In your case, if you are sure that you will give everybody a basic salary of more than 6500 ( because on a basic +DA of more than 6500, PF is optional), you may start hiring. PF registration will still be necessary but you will have to deposit a nominal amount ( Rs. 7/head, probably) for compliance. ESI you can't evade.
And it's not only PF+ESI. If you are going to appoint so many of "Apprentices" , that will attract Apprentice Act. On the top of it, it will not exclude you from PF compliance, because PF authorities take the count of total number of people who put in their attendance and are not bothered about their categories.
Had i been in your place, i would have adopted a model of outsourcing , if i must evade PF & ESI.
1. Have Franchise/Freelancing sort of agreement.
2. Allow them to work from home.
3. Work out a minimum fee for all freelancers. Have a good software that will keep you updated about number of hours that they log in. Link the fee to the number of hours logged in ( equivalent to office hours)
4. Have reports from them on a daily basis.
5. Keep 5 good recruiters, 2 marketing, 1 IT and 2 Directors as perm employee. It will keep the number at 10 only. Outsource house keeping, security and reception.
6. Have a physical meeting with all freelancers on a weekly, bi weekly basis.
7. Have stringent target achievement clauses in your agreement.
8. Target experienced recruiters, such as girls who cudn't carry on because of marriage or girls on maternity leave.
9. You are good to go. Increase/Decrease the size as per your market capture.
From India, Delhi
107Greetings!!!
From an owner's perspective, your concern is pretty valid. However, you need to understand that these are in-built costs for a business and you must account for this cost, irrespective of market conditions.
In your case, if you are sure that you will give everybody a basic salary of more than 6500 ( because on a basic +DA of more than 6500, PF is optional), you may start hiring. PF registration will still be necessary but you will have to deposit a nominal amount ( Rs. 7/head, probably) for compliance. ESI you can't evade.
And it's not only PF+ESI. If you are going to appoint so many of "Apprentices" , that will attract Apprentice Act. On the top of it, it will not exclude you from PF compliance, because PF authorities take the count of total number of people who put in their attendance and are not bothered about their categories.
Had i been in your place, i would have adopted a model of outsourcing , if i must evade PF & ESI.
1. Have Franchise/Freelancing sort of agreement.
2. Allow them to work from home.
3. Work out a minimum fee for all freelancers. Have a good software that will keep you updated about number of hours that they log in. Link the fee to the number of hours logged in ( equivalent to office hours)
4. Have reports from them on a daily basis.
5. Keep 5 good recruiters, 2 marketing, 1 IT and 2 Directors as perm employee. It will keep the number at 10 only. Outsource house keeping, security and reception.
6. Have a physical meeting with all freelancers on a weekly, bi weekly basis.
7. Have stringent target achievement clauses in your agreement.
8. Target experienced recruiters, such as girls who cudn't carry on because of marriage or girls on maternity leave.
9. You are good to go. Increase/Decrease the size as per your market capture.
From India, Delhi
Thx for sharing your views. With these valuable inputs, I surge ahead with the thought of complying with total compliance on PF & ESI. I guess thats the only correct way forward for the business.
Is it possible that I hire 30 employees now & issue them appointment letters without ESI & PF.
Apply for PF & ESI at a later month before the end of this financial year & than issue them a circular on ESI & PF. Will that be legal, since I will be complying with PF & ESI norms within the financial year.
Pls Advice !
From India, New Delhi
Is it possible that I hire 30 employees now & issue them appointment letters without ESI & PF.
Apply for PF & ESI at a later month before the end of this financial year & than issue them a circular on ESI & PF. Will that be legal, since I will be complying with PF & ESI norms within the financial year.
Pls Advice !
From India, New Delhi
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