PF & ESI And Labour licence
- PF & ESI (Employee Provident Fund and Employees' State Insurance)Nature: PF and ESI are social security schemes mandated by the government to provide financial protection to employees.
Purpose:
PF (Employee Provident Fund): It is a retirement savings scheme where both employees and employers make contributions, which accumulate over time and provide a lump sum upon retirement, resignation, or under certain conditions.
ESI (Employees' State Insurance): It offers medical and cash benefits to employees and their dependents in case of sickness, maternity, disability, or death due to employment-related injuries or illnesses.
Components:
PF: It involves contributions made by employees and employers, and the fund accumulates with interest. It can also be withdrawn partially or entirely under specific circumstances.
ESI: It includes contributions made by employers and employees. It covers medical expenses, sickness benefits, maternity benefits, and more.
Applicability:
PF is typically applicable to organizations with 20 or more employees.
ESI is applicable to organizations with 10 or more employees in specific geographic areas.s
- Labour License (Factory/Shop Establishment License) Nature: A Labour License, also known as a Factory License or Shop Establishment License, is a legal permit issued by the government authorities.
Purpose: The purpose of a Labour License is to regulate and monitor labor-related activities in certain establishments, ensuring that they comply with labor laws and safety standards.
Components: The requirements for obtaining a Labour License vary by jurisdiction but may include details about the establishment, its location, working hours, and labor-related amenities.
Applicability: It is typically required for businesses operating in manufacturing, commercial, or industrial sectors.
Compliance: Businesses holding a Labor License must adhere to labor laws, including those related to working conditions, wages, and safety standards.
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