Being a financial service company, we have much of cash which is in transit and with employees collected from the field. The company has taken a Money Insurance and Fidelity Guarantee for any loss, which says that it is applicable only if the cash is with authorised employee. Now as per Comp. policy the new field staff is tested for initial two months as trainee and are not enrolled under PF/ESIC. The question is
1) Can we consider the trainee as Authorised employee of the company as they handle cash even during traineeships?
2) Is it mandatory to enrol the trainee under PF/ESIC from their first day of joining?
3) Can we have a solution to this issue?
I am eagerly awaiting response as this is urgent/
Thanks.
From India, Ahmadabad
1) Can we consider the trainee as Authorised employee of the company as they handle cash even during traineeships?
2) Is it mandatory to enrol the trainee under PF/ESIC from their first day of joining?
3) Can we have a solution to this issue?
I am eagerly awaiting response as this is urgent/
Thanks.
From India, Ahmadabad
Dear Friend
Trainee / Apprentice designation is more or less one and the same and persons who are recruited under these category for fixed period, are provisionally taken to learn particular job skill. So as per apprentice ship act, these category employee are not considered as regular employees of the company. However, employee who are taken as trainees / company apprentices in a company will be covered under social security enactments under ESI and PF. In view of the above, it is to be noted that
1. Considering trainees as authorized persons to handle the issues of cash is no relevance for extending PF and ESI to such employee and it will be purely depending upon trust and nature of employment which will have certain terms and conditions or guidance given by employer to employees in accordance with their respective Job Description.
2. If you employ any person other than Act Apprentice Ship, you are required to extend PF & ESI facility to such person, provided if your company employing such number of persons as per the relevant clause of respective enactments i.e applicability point of view.
3. Only solution is that you should not link up PF and ESI issue with entrusting cash handling work to your trainee cadre employees and you should see their general behaviors, honesty and dedication towards such work etc
Regards
From India, Hyderabad
55Trainee / Apprentice designation is more or less one and the same and persons who are recruited under these category for fixed period, are provisionally taken to learn particular job skill. So as per apprentice ship act, these category employee are not considered as regular employees of the company. However, employee who are taken as trainees / company apprentices in a company will be covered under social security enactments under ESI and PF. In view of the above, it is to be noted that
1. Considering trainees as authorized persons to handle the issues of cash is no relevance for extending PF and ESI to such employee and it will be purely depending upon trust and nature of employment which will have certain terms and conditions or guidance given by employer to employees in accordance with their respective Job Description.
2. If you employ any person other than Act Apprentice Ship, you are required to extend PF & ESI facility to such person, provided if your company employing such number of persons as per the relevant clause of respective enactments i.e applicability point of view.
3. Only solution is that you should not link up PF and ESI issue with entrusting cash handling work to your trainee cadre employees and you should see their general behaviors, honesty and dedication towards such work etc
Regards
From India, Hyderabad
1) Can we consider the trainee as Authorised employee of the company as they handle cash even during traineeships? - not applicable
2) Is it mandatory to enrol the trainee under PF/ESIC from their first day of joining? - YES YES YES
3) Can we have a solution to this issue? - you can collect refundable deposit and an affidavit from them
do remember even if your senior staff abscond with cash you can not retrieve it from pf or gratuity contribution
attribution https://www.citehr.com/511035-i-am-w...#ixzz3ImX9NCYX
From India, Chennai
2) Is it mandatory to enrol the trainee under PF/ESIC from their first day of joining? - YES YES YES
3) Can we have a solution to this issue? - you can collect refundable deposit and an affidavit from them
do remember even if your senior staff abscond with cash you can not retrieve it from pf or gratuity contribution
attribution https://www.citehr.com/511035-i-am-w...#ixzz3ImX9NCYX
From India, Chennai
Dear Seniors,
Thank you very much for your advice. In furtherance to my (https://www.citehr.com/511035-i-am-working-manager-hr-micro-finance.html#2188980) earlier query I request to guide/suggest me on following:
1) The ground staff (having high attrition) in our company (a NBFC) are rural youths, so before regular on-boarding they are paid just a consolidated salary without any statutory deduction. After satisfactory performance in initial two months they are enrolled for PF/ESIC. Is this legal?
2) During any loss/accident, the money/fidelity insurance company asks for PF/ESIC details of the employees. Is there a way out that our ground staff in the initial two months are considered as regular/authorised employee of the company and we comply to the statutory norms (following above practice)?
Kindly advice
Thanks!!
Manmohansinh
From India, Ahmadabad
Thank you very much for your advice. In furtherance to my (https://www.citehr.com/511035-i-am-working-manager-hr-micro-finance.html#2188980) earlier query I request to guide/suggest me on following:
1) The ground staff (having high attrition) in our company (a NBFC) are rural youths, so before regular on-boarding they are paid just a consolidated salary without any statutory deduction. After satisfactory performance in initial two months they are enrolled for PF/ESIC. Is this legal?
2) During any loss/accident, the money/fidelity insurance company asks for PF/ESIC details of the employees. Is there a way out that our ground staff in the initial two months are considered as regular/authorised employee of the company and we comply to the statutory norms (following above practice)?
Kindly advice
Thanks!!
Manmohansinh
From India, Ahmadabad
Dear Manmohan,
Any employee excluding a apprentice is coverable under ESIC/EPF from his very first day of joining and as such your practice is illegal.
If the name of such self styled or so called trainees is not entered in the prescribed records, how you will prove him as your employee?
P K Sharma
From India, Delhi
Any employee excluding a apprentice is coverable under ESIC/EPF from his very first day of joining and as such your practice is illegal.
If the name of such self styled or so called trainees is not entered in the prescribed records, how you will prove him as your employee?
P K Sharma
From India, Delhi
The trainee as explained by you is eligible for PF.If you are not covering them you are committing violation and can be penalized.
If employee is eligible and you are paying consolidated salary entire amount shall be eligible for PF contribution, Gratuity...
You should avail the services of LABOR LAW CONSULTANTS and put the things in order.
From India, Chandigarh
If employee is eligible and you are paying consolidated salary entire amount shall be eligible for PF contribution, Gratuity...
You should avail the services of LABOR LAW CONSULTANTS and put the things in order.
From India, Chandigarh
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