Barkha,
As per the above discussion and critical situation of statutory compliance, i guess taking the guy on retainer ship basis is best solution.
After a specific period of time, may be after probation and his good performance you can take him on rolls and increase is CTC so that he would be comfortable in paying the PF amount also.
At such low salaries, it too hard to convince the employee for more statutory deductions.
Thanks!
From India, Pune
70As per the above discussion and critical situation of statutory compliance, i guess taking the guy on retainer ship basis is best solution.
After a specific period of time, may be after probation and his good performance you can take him on rolls and increase is CTC so that he would be comfortable in paying the PF amount also.
At such low salaries, it too hard to convince the employee for more statutory deductions.
Thanks!
From India, Pune
As he was a New employement with you, better put him under Training Period. Then you no need to pay him the PF and he will pay the PF when he is Completion of his training period. by the time you can deduct the PF and All.That time he might be came to undrstand.
ksk.
From India, Hyderabad
ksk.
From India, Hyderabad
Thank you Mr.Mayur for your advice...
But i have 1 small query....
If people are on retainer ship basis [which is basically on a contract of a year which keeps on getting revised year after year], is it legally correct not to deduct PF even if his salary is less than 6500 as it is the case with our office boy...
From India, Pune
But i have 1 small query....
If people are on retainer ship basis [which is basically on a contract of a year which keeps on getting revised year after year], is it legally correct not to deduct PF even if his salary is less than 6500 as it is the case with our office boy...
From India, Pune
Hello barkha.
I would like to solve your querry.
If employee Basic+D.A coming below 6500/- then it will be very inevitable to deduct the pf from the employees salary.
as you mentioned in your question that employee is not ready to deduct the pf, as he put on company payroll, so the responsibility of principal employer to follow all the statutory compliance.
You have further mentioned above if you show the employee on outsource basis or contractor basis.
it would be mandatory for immediate employer to deduct the pf amount from employees.
in case if immediate employer has no PF coverage, then it becomes the obligation of principal employer to deduct the pf on their behalf.
Because employee working in your organisation, so all compliance you will have to take care whether the employee belongs to outsource/contractor,
You are the principal employer. When inspection occurs in your premises, then auditor will ask you to show contractor wages register and attendance register,
if his basic da coming under pf ceiling limit then might be demand to show the contribution of that employees.
So it does not matter whether the employees belong to contractor party or company payroll.
All statutory rules and regulation will be applied on employees.
If employees working in ur organisation which is from contractor side,
Then every month take challan receipt of pf and esi contribution with salary summary sheet from immediate employer. Whether he is submitting the contribution adequately or not.
Again i am suggesting you, if you are principal employer, then its your obligation to see all statutory compliance of all employees which consist(company payroll, contractor, outsource).
Because all are working in your organisation.
I hope you will be clear this.
Thanks
From India, Chandigarh
I would like to solve your querry.
If employee Basic+D.A coming below 6500/- then it will be very inevitable to deduct the pf from the employees salary.
as you mentioned in your question that employee is not ready to deduct the pf, as he put on company payroll, so the responsibility of principal employer to follow all the statutory compliance.
You have further mentioned above if you show the employee on outsource basis or contractor basis.
it would be mandatory for immediate employer to deduct the pf amount from employees.
in case if immediate employer has no PF coverage, then it becomes the obligation of principal employer to deduct the pf on their behalf.
Because employee working in your organisation, so all compliance you will have to take care whether the employee belongs to outsource/contractor,
You are the principal employer. When inspection occurs in your premises, then auditor will ask you to show contractor wages register and attendance register,
if his basic da coming under pf ceiling limit then might be demand to show the contribution of that employees.
So it does not matter whether the employees belong to contractor party or company payroll.
All statutory rules and regulation will be applied on employees.
If employees working in ur organisation which is from contractor side,
Then every month take challan receipt of pf and esi contribution with salary summary sheet from immediate employer. Whether he is submitting the contribution adequately or not.
Again i am suggesting you, if you are principal employer, then its your obligation to see all statutory compliance of all employees which consist(company payroll, contractor, outsource).
Because all are working in your organisation.
I hope you will be clear this.
Thanks
From India, Chandigarh
Option 1: You can put him on fixed term contract for not more than 1 year and show a consolidated wages above 6500 to avoid PF contributions. Please keep in mind that if the employee completes 240 days of service and you plan to renew his FTC, there is all possibility that he may claim permanency.
Option 2: Please increase his salary to the extent of PF contributions. In subsequent year you may hold his increments to nullify this increase.
My suggestion to go with option 2. Your call based on your company policy
From India, Chennai
Option 2: Please increase his salary to the extent of PF contributions. In subsequent year you may hold his increments to nullify this increase.
My suggestion to go with option 2. Your call based on your company policy
From India, Chennai
Dear Barkha,
1) If you put him again on outsource basis then it is mandatory of vendor to deduct PF if his strength is more than 20 employee.
2) Second method is put him on Voucher Payment. But legally it is not right method. It may causes some problem from PF in future.
With Regards,
Vineet Deshmukh
From India, Yavatmal
1) If you put him again on outsource basis then it is mandatory of vendor to deduct PF if his strength is more than 20 employee.
2) Second method is put him on Voucher Payment. But legally it is not right method. It may causes some problem from PF in future.
With Regards,
Vineet Deshmukh
From India, Yavatmal
THE BEST WAY & OPTION IS THAT TAKE HIM PON YOUR PAYROLL, BUT PROTECT HIS NET TAKE HOME SALARY WHICH HE IS CURRENTLY GETTING... ADD PF CONTRIBUTION, ESI & EMPLOYEE PF OVER & ABOVE... MAY RESULT IN FEW INCREASE IN CTC BUT THIS WAY YOU WILL BE ABLE TO RETAIN HIM, KEEP HIM MOTIVATED & ITS BETTER TO TAKE CARE OF A PERSON WHO HAS ALREADY BEEN WORKING IN YOUR ENVIRONMENT RATHER THAN HIRE A NEW ONE.... BEST WISHES, RAJESH SATYAL, HEAD HR, VALUEPEOPLE, AFORESERVE GROUP. 
From India
From India
have read all discussions, really surprised our HR Fraternity can comeup with such brighjt ideas & that too for a mere few hundred rupees & that for an Office Boy... who is already at a lower salary level....
PLEASE IT SOUNDS VERY STRANGE IN ANY PROFESSIONAL CORPORATE TO HAVE A PEOPN OR OFFICE BOY AS A TRAINEE OR RETAINERSHIP.... JUST BE SIMPLE, PRACTICAL, TAKE HIM ON YOUR PAYROLL, PROTECT HIS NET TAKE HOME SALARY & JUST CARRY ON... NEXT YEAR WHEN INCREMENTS ARE DUE PLEASE DO ALLOW HIM TO BE ELIGIBLE FOR IT... LETS NOT FORGET OFFICE BOYS ARE HUMANS TOO.... SORRY TO SEE THE MENTAL FRAMEWORK OF OUR HR IN INDIA... WE ARE READY TO PAY HUGE SALARIES & PERKS TO OTHERS BUT TO LOWER STAFF..... WE ARE EXCHANGING NOTES HOW TO SAVE FEW HUNDRED MORE & VIOLATE PF...
PLEASE PARDON ME BUT WITH RESPECT TO ALL, JUST GO AHEAD TAKE HIM ON PAYROLL & PROTECT HIS NET TAKE HOME SALARY.. HE WILL BE HAPPY & YOU WILL FEEL BOTH MENTALLY & ETICALY STRONG
From India
PLEASE IT SOUNDS VERY STRANGE IN ANY PROFESSIONAL CORPORATE TO HAVE A PEOPN OR OFFICE BOY AS A TRAINEE OR RETAINERSHIP.... JUST BE SIMPLE, PRACTICAL, TAKE HIM ON YOUR PAYROLL, PROTECT HIS NET TAKE HOME SALARY & JUST CARRY ON... NEXT YEAR WHEN INCREMENTS ARE DUE PLEASE DO ALLOW HIM TO BE ELIGIBLE FOR IT... LETS NOT FORGET OFFICE BOYS ARE HUMANS TOO.... SORRY TO SEE THE MENTAL FRAMEWORK OF OUR HR IN INDIA... WE ARE READY TO PAY HUGE SALARIES & PERKS TO OTHERS BUT TO LOWER STAFF..... WE ARE EXCHANGING NOTES HOW TO SAVE FEW HUNDRED MORE & VIOLATE PF...
PLEASE PARDON ME BUT WITH RESPECT TO ALL, JUST GO AHEAD TAKE HIM ON PAYROLL & PROTECT HIS NET TAKE HOME SALARY.. HE WILL BE HAPPY & YOU WILL FEEL BOTH MENTALLY & ETICALY STRONG
From India
Barkha, It doesnt matters to pay PF for retainer ship employees. Its not mandate, neither required to pay PF.. its only the Fees need to paid monthly. No legal obligations as such!
From India, Pune
From India, Pune
Dear Barkha,
Before giving any view i have some questions like
1. Can u guide us what is the employee strength during the year 2012 whether below 20 or not?
2. The office boy joined in your company payroll in Jan2013 so before that he was not in your muster roll nor in salary register. That means statutorily he was not your employee on the year 2012.
3. If he was working through an out source vendor do u have Registration Certificate for deploying contract labour or not in your premises as a principal employer? Have u maintain form XII register as per CLR act or not?
Statutorily lot of things are there so kindly give some more information regarding u r issue so that accordingly we can help u.
Thanks/regards
Ratikanta Rath
From India, Durgapur
Before giving any view i have some questions like
1. Can u guide us what is the employee strength during the year 2012 whether below 20 or not?
2. The office boy joined in your company payroll in Jan2013 so before that he was not in your muster roll nor in salary register. That means statutorily he was not your employee on the year 2012.
3. If he was working through an out source vendor do u have Registration Certificate for deploying contract labour or not in your premises as a principal employer? Have u maintain form XII register as per CLR act or not?
Statutorily lot of things are there so kindly give some more information regarding u r issue so that accordingly we can help u.
Thanks/regards
Ratikanta Rath
From India, Durgapur
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