Hello to All
Please provide me detail about, who paid the PF & ESI amount for Contract Labour.
Is it Employer
OR
Is it Contractor
I am little confused some asked Employer & Some asked Contractor.
Please update me.
Regards
Annu

From India, Delhi
Hi!
PF & ESI amount is deducted & submitted by the contractor but paid by the employer as contractor claims the same amount in the bill alongwith his charges.
Responsibility is always lies with that of Principal employer.
Asmita Bhalla
atmik consultancy services ( Labour law consultant)
9867289880

From India, Mumbai
Hello Anu,
IF the contractor is covered under ESI and EPF then he is responsible being the immediate employer for payments and compliances.
When the contractor deputes his employees to a principal employer's location, then the contractor will have to satisfy the principal employer too about his compliance and payment of contributions of ESI and EPF.
This is a responsibility thrust on the Principal employer to check the contractor's compliance and if he is faulty in his compliance, then the Principal employer has the duty to correct the compliance position of the contractor by insisting upon the contractor to pay etc. If the contractor refuses or evades the payment of contributions in respect of his employees deputed, then the principal employer has the duty /right to deduct from the outstanding bill amount and clear the dues.
So you cannot relax stating it is the principal employer's duty to pay. Even if he were to pay it will come out of your billing only.
regards

From India, Bangalore
Dear all
I am looking for a jobs in HR/IR/Admn. in Chandigarh, Baddi, Panchkula, Mohali location, having experience of more than three years. Pls help me by providing references by the way i am MBA and now pursuing diploma in labour law and administrative law. find my contact detail posting here.
Rajinder Singh
09876978160, 9418320022

From India, Chandigarh
Hi Anu,

I am dealing with the contract management in my company. For paying PF & ESI the contractor is fully responsible. The contractor has to pay the PF & ESI to his employees. PF & ESI codes are given in the name of the company, how can a company pay PF & ESI to the contract employees with the company PF & ESI codes ? Company PF & ESI codes are to be used to company employees only.

For Example :- In my company none of our employees falls under ESI slab (Rs.10000), for that reason there is no necessity for my company to take ESI code to our employees, but we have hired contractors for providing security and housekeeping services, all the contract employees are below the ESI slab, so the contractor have taken both PF & ESI codes on the contractor name and he is taking care of paying PF & ESI to his employees.

One straight thing - Employee's Employer is responsible for paying PF & ESI. The reason for hiring contractor to provide services are remove such kind of headaches to Principal Employer. being a principal employer we need to have control over contractors so as to ensure the contractor is paying PF & ESI to his employees.

For any further legalities please check with act.

Regards
Pradeep Nalluri

From India, Hyderabad
Hai Dear all, i going to conduct the safety awareness class next week, i want some safety awareness picture and video, pl help somebody.
From India, Madras
Hi this is uday pavan kumar, HR, i want wat are current apprisal methods to apprise employee performance
From India, Hyderabad
Hi Annu, The Employer will pay to the Contractors and they need to pay for their Employees, moreover the principle Employer has to check (or) Verify the payment details. Thanks
From India, Madras
It is the sole responsibility of the contractor to take care of his / her employees' PF and ESI subscriptions. However, the principle employer has the duty of ensuring that the contract employees are covered under the above legal deductions. The prinicple employer need to insist the contractor to show his / her company's PF, ESI registration and can also ask the contractor to show the photocopy of the returns filed (either manually or half yearly/ annually)
From India, Bangalore
To respond to Pradeep Nalluri,

the ESI / PF Act is applicable to Establishment. So any of the contractor being engaged by the particular establishment has to comply with the same. So even if your own employees do not fall under ESI provisions since you are paying more than than the amount specified in ESI Act, still the Act applies on your establishment since you are engaging contractor who do not pay more than Rs.10000/- to their workers engaged in your establishment. So please take your ESI code separately as the ultimate responsibility lies on the PE.

Coming to the point that the contractor engaged at any point do not have the ESI / PF code, then it is PE's responsibility to depost the ESI / PF contribution (workers + employers)as applicable with the ESI / PF Authority under their own ESI / PF code till such time the contractor takes his own registration code under the Acts.

At no point of time the provisions under ESI/PF can be denied to any workers (own or through contractor) and the Act does not differentiate between workers of Company or contractor since the same is applicable to establishment.

(Rajiv Ranjan)

From India, Faridabad
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