Appointment Date & PF

saurabh_raj888@yahoo.co.in
Sir/Ma'am,
Our organization issues offer letters with 6 months probation condition. All benefits including PF start after confirmation after 6 months. I am having trouble in understanding that such an offer only talks about a lump sum amount as salary without any deductions so, how do we treat the appointment.
Kindly, advise that in this case:
1. Is this a right procedure
2. When should be the appointment date
3. When should be the appointment letter given
4. PF benefit should be given from which day as per law
Your advice will really help me
Sincerely,
Saurabh.
k_shenbagarajan
Dear Saurabh,

It depends on how you have been designated in the company. You are an employee or Trainee(Apprentice).

If you are designated as trainee/apprentice then the company will not be paying PF or if you have been hired for fixed term for 6 months then company will not pay PF because it will be taken as stipend. If as an employee if basic pay(Not Gross) is more than Rs.6500/- the company gets Form 11 filled by the employee at joining for getting exempted from PF.

Other than this every establishment who has more then 20 employees(Hoping soon to become 10 employees) has to pay PF for all employees.

your answers

1. Is this a right procedure

Ans. It is right if you are a trainee / apprentice since it is not a full time employment.

2. When should be the appointment date

On the day of joining the company as an employee and in case of trainee/ apprentice the date of confirmation as an employee.

3. When should be the appointment letter given

On the day of joining the company as an employee and in case of trainee/ apprentice the date of confirmation as an employee.

4. PF benefit should be given from which day as per law

From the day 1 if you are an employee and not as trainee/ apprentice..
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