Without giving PF employee recruitment possible

Ask the Community HR
1

is it possible as per law to have temporary employees without PF , or probations time no pf . If want no pf criteria which is best method to recruit employee

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2

Hi @Ashish

As per PF Act, all newly recruited employees whose basic salary is less than 15000 to be covered under PF act.

Probation is for Employer & Employer to check the fitness between act & other and not to play with Employee Benefits.

Statutory Acts are applicable rom Date of Joining irrespective of Probation Period.

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Hi @Ashish

The employer has to recognize the nature of employment either as a temporary or permanent one. If temporary whether contract or any professional service/ consultancy or is it a probationary period which will lead to a permanent employment. Based on this accordingly the applicable laws shall kick in.

And once the employer have the required threshold of employees as prescribed under respective PF, ESIC, contract laws, the compliance becomes inevitable, they can classify certain employment with the basic salary more than the prescribed slabs to avoid pf deductions. Credit: @Bhuvana_Anand :slight_smile:

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It depends on the employment terms.

  • If you hire as a consultant then PF applicability will not be there.
  • If hired as employee either Probation or confirmed then PF will be applicable if their Basic wages are less than 15K.
  • If Basic wages are more than 15K then it is up to to the company to decide to give PF benefit or not.
  • If the employee has been covered in PF anytime earlier to this employment then PF deduction has to continue irrespective of this salary.
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5

thank you so much , yes basic salary slab is one thing which employer can use to avoid pf.

But there are many students who join for 6-8 months or temporary workers some on cash salary n some on bank transfer . so we need a solution if possible, to recruit employee as temp employee without pf with bank transfer salary under total 10000 rs salary

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6

yes valid points , thank u for giving valuable inputs,
Just want to know is there any solution for lower salary people i mean to say any different category, as you rightly pointed out instead of employee hire consultant, so can we specify some under 10k salary worker /maid/ student under any such category without pf and they will be not counted as employee.

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7

yes true for employee all this rules are there, but there is situation when temporary time frame workers want to join or before hiring them as a employee as a non employee category can pay them for work .

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