EPF scheme has many norms and principal attached to it. Sometimes the establishments are subjected to tough situations. And under these circumstances, the organization might fall and may not be able to recover back to the usual functioning. So it might need to close down its operations. But the establishment might be in possession of certain assets that it wants to protect from various frauds and malpractices. So, the organization might keep on to a few numbers of employees to look after the assets. But it remains a matter of concern whether these employees would be subjected to the EPF scheme and the benefits to which he/she was being subjected to earlier. So in this article, we would discuss, Is the EPF Act applicable to a factory that is closed down but is employing a few employees to look after the assets of the establishment?
EPF Scheme Under Asset Protection Of The Establishment
Under this kind of situation, if the establishment is in a closed-down situation, then the establishment is not liable to pay EPF contribution. But it is important to note that the number of employees employed as security personal of the assets must not exceed the number of 4. If the organization follows these principles, then the EPF act is exempted from such an organization.
Also, an establishment facing extreme circumstances like this, an exemption from the EPF act, can benefit the organization when it comes to financial liabilities. But if you as an employee are emotionally attached to the establishment, then these things would not matter to you. But if you are free from any such obligations, then it is preferred to change on to your serving organization.
EPF ensures the interest of all the individuals which are in connection with it. This has made the EPF scheme to stand out among the various savings schemes out there. This has fulfilled the individual’s dreams that an employee possesses when he/she decides to work for the same.
The benefits that are provided by the EPF scheme are unmatched. Moreover, the government’s backing that the EPF possesses provides the highest level of security in terms of withdrawal and related principles. So, to be eligible for an employer to provide it’s benefits to its employee. The same has to have at least 20 employees to work for the same organization.
EPF scheme is one of its kind that looks on to support salaried employees. These are in place to look after the interest of salaried employees. But the organization from whom you work might face a shutdown, which is majorly due to financial liabilities. And the employees are let out by the organization and locked down in more critical situations. So, the EPFO realizes this situation and exempts these types of organizations from the EPF act.