Hi Sir, I want to know that we are starting a new factory at a different place of address in which only 5 employees are working in a new factory where our main branch is working 23 employees are working and we follow factory rule measures like EPF & ESIC now the doubt is the can a new factory with only 5 employees also apply EPF and deduct or can we omit that factory? please advise.
From India, Chennai
From India, Chennai
Hi, If the new factory is going to be separate entity with 5 employees then PF will not be applicable now. However if you are planning to operate it as a Branch with one PF Establishment code then PF will be applicable for those 5 employees also.
From India, Madras
948From India, Madras
Yes you can very well omit to get license, because workers count not reached 20 without power and with power as10.
From India, Chennai
From India, Chennai
Hi Nabeel,
Typically, the applicability of EPF (Employee Provident Fund) and ESIC (Employee State Insurance Corporation) depends on the number of employees and the specific regulations of your country. In India, for instance, EPF and ESIC are mandatory for factories or establishments that employ 20 or more persons.
Since your new factory employs only 5 employees, it may not be mandatory for you to apply EPF and ESIC according to the general rules. However, you might want to consider the following:
Check Local Regulations: Laws regarding EPF and ESIC may vary from state to state or region to region. It's essential to verify the specific regulations in the area where your new factory is located.
Consider Future Growth: While it might not be mandatory now, consider the potential for growth. If you foresee hiring more employees in the near future, it might be prudent to implement EPF and ESIC from the outset to avoid any compliance issues later on.
Employee Benefits and Attraction: Offering EPF and ESIC benefits can be an attractive feature for potential employees, even if it's not mandatory. It shows that you value their long-term financial security and well-being.
Thanks,
From India, Bangalore
Typically, the applicability of EPF (Employee Provident Fund) and ESIC (Employee State Insurance Corporation) depends on the number of employees and the specific regulations of your country. In India, for instance, EPF and ESIC are mandatory for factories or establishments that employ 20 or more persons.
Since your new factory employs only 5 employees, it may not be mandatory for you to apply EPF and ESIC according to the general rules. However, you might want to consider the following:
Check Local Regulations: Laws regarding EPF and ESIC may vary from state to state or region to region. It's essential to verify the specific regulations in the area where your new factory is located.
Consider Future Growth: While it might not be mandatory now, consider the potential for growth. If you foresee hiring more employees in the near future, it might be prudent to implement EPF and ESIC from the outset to avoid any compliance issues later on.
Employee Benefits and Attraction: Offering EPF and ESIC benefits can be an attractive feature for potential employees, even if it's not mandatory. It shows that you value their long-term financial security and well-being.
Thanks,
From India, Bangalore
If both these factories are managed by a single management, then you can cover the employees of the new factory under the Registration Certificate of EPF and ESI under the existing company. If the new factory is situated away from the present factory for which RCs are available, you can take subcodes for ESi and EPF. For EPF you can even register the employees of the new factory without a subcode but it is advisable to get sub code for ESI.
If the new factory is separate from the existing establishment by all means, with separate balance sheet, then it is a separate independent establishment. In such a scenario, taking ESI registration is not possible. For registration of EPF, there is a scope of getting voluntary registration. But that process involves lengthy process because voluntary registration is given by the Central PF Commissioner and not the by the regional offices of EPFO. For ESI, there is no such voluntary coverage. However, you get registration by including some casual workers for a single day and exiting them on the other day. This has worked in many establishments who have approached me for guidance and you can also do it.
From India, Kannur
If the new factory is separate from the existing establishment by all means, with separate balance sheet, then it is a separate independent establishment. In such a scenario, taking ESI registration is not possible. For registration of EPF, there is a scope of getting voluntary registration. But that process involves lengthy process because voluntary registration is given by the Central PF Commissioner and not the by the regional offices of EPFO. For ESI, there is no such voluntary coverage. However, you get registration by including some casual workers for a single day and exiting them on the other day. This has worked in many establishments who have approached me for guidance and you can also do it.
From India, Kannur
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