ESIC/PF Rules For New Establishment Of A Group Of Companies

shaukat hussain
My company “Sachin Chemical Ltd” having 5 units in different states of India. All are covered under PF ESIC Act. All units having its own different registration under both acts. Now our management is going to start a new Unit under same name in UP state. My query is that is this unit is automatically covered under PF/ESI Act?
Notables:
1. This new unit not having 20 or more employees.
2. Area in which Unit is established covered under ESIC .
3. Production not yet started.
Kindly give your valuable guidance please.
Regards
S.Hussain
sarmakpk
It is automatically covered.
PF Act says - same of company established different areas - u can pay the PF single code only just give the intimation to PF and when pf is not satisfy, they will give the sub code particular area.
same like ESI also
saiconsult
Sinc eproduction has not yet started, it need not be covered till then and once production starts, you need to cover it under P.F and ESI.
B.saikumar
Hr & Labour law advisor
Mumbai
BSSV
Hello Hussain,
You are just opening the branch of your company and not a different company by itself, so company policies and procedures will be the same, otherwise the particular state legislations are opposed to it.
hence, PF or ESI codes will be same, but the special provisions, if any, needs to be observed then you shall,according to them........ so for this reason you may get a sub-code, as cleared by Sarma KPK , above........
subbarao.v
Hai Shaukat Hussai,
It is not the matter whether production is started or not.Once it is covered(i-e Mother unit is covered)
its branch should also be covered automatically. Even if it is run under another name it will be considered as part & parcel of the main unit.So both ESI & EPF MUST BE ELIGIBLE & COVERED
With regards
v.subbarao
9841103098
ananthnellai
Dear Sir
Our Head & regd. office in Bangalore previously both are in Taminadu. PF & ESI also we started in tamilnadu now esi only get sub code to District and State wise. Now we are plan to PF shift from Tamilnadu to Bangalore if this is possible or not, in case not possible what producer we are followed?
Kindly advise.....
saiconsult
The language of Sec.1 which states that the P.F Act is applicable to an establishment 'engaged " in industry' and the definition of 'Employee' under Sec2(f) which defines an employee as a person, 'employed for wages in any kind of work of the establishment or in any kind of work connected with that of the establishment" presupposes that a premises to be called an establishment shall have a business or production activity to be carried on that.It is not the object of the P.F Act to cover a bare premises where no work nor production has started and no employees have been recruited in as much as it does not cover an establishment which is closed or where the business activity or production activity comes to an end. The object of P.F Act is to cover persons employed in the work of the establishment. It is altogether a difefrent issue if you have employed persons to do some work preliminary or incidental to the production. But the details furnished by you do not indicate any thing to this effect.

B.Saikumar

HR & Labour Law advisor

Mumbai.
munnabhai1971
B.Saikumarji,
If any company wishes to certiffy it's standing order wheter it is required to give notice to workers for change in working conditions.
Mangesh Wakodkar
Aurangabad
saiconsult
Mr.Mangesh
No.If the company wishes to get it's standing orders certified or intends tomodify the standing orders. then it ha sto follow the procedure laid down under Sec8 and Sec.10 of teh Standing orders Act 1946. The qiestion of issuing notice of change arises only when the company is changing any existing service condition of the workmen like altering aholiday or withdrawing abenefit hitherto enjoyed by them for along time etc.
B.Saikumar
Mumbai
parul.mehta18@gmail.com
Respected Seniors,
I have a query regarding the company that has branches in different states. It would be great if I can seek your guidance on what PF rules would be applied on that company and its branches and if I could know where in the PF Act I can locate them.
Regards
Parul Sharma
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute