Legal Question in Employment Law in India

applicability of EPF & MP Act 1952

Ours is a company registered under Indian Compnies Act 1956 since 1991.

It has already in the business of manufacturing of Paper & agro products and employees in the different units are already covered under the employees PF & Misc. provisions act.

Recently our company has decided to set up a new Cement Manufacturing unit at seperate location with different man power. the cement unit has separate bank a/c no, excise no. & service tax no. employees are not transferred from other units.

Moreover books of a/c are maintained separately then consolidated.

At present the Cement Unit is under the construction , erection & Fabrication stages. It is likely that the trial production may start in the month of April 2008.

Under the circumstance from which date the employees employed directly by our company and employed by the contractor for the setting up the cement unit to be covered under the PF Fold ? Whether from the date of trial production or from the day one from which they are employed for setting up of cement Unit ?

We shall be highly obliged for your considered opinion.


Asked on 6/26/07, 11:08 am

2 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: applicability of EPF & MP Act 1952

You have to calculate the Provident Funds from the date of actual employment does not matter weather the company is working or not

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Answered on 9/26/07, 10:31 am
kavitha balakrishnan kpp associates

Re: applicability of EPF & MP Act 1952

PF counts are taken from the date of actual employement irrespective wheather the company had been in production or stoppage or not.. the date of employment in the employment order counts! deploying emplyees of other units to this company on probations or special task or training or some on preferrence by the employee for probation is what usually done. the new employees in probation or training may not be eligible for PF until they become regularised payroll employees!

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Answered on 6/27/07, 1:14 am


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