We are going to award a construction contract for wall with 280 running meters to a constractor. However, we found that
1. The contractor is not registered for provident fund and the proposal quoted to us is exclusive of PF. ==> my inquiry is that our company who is principal contractor has to take care of provident fund or not.
2. As informed by the contractor, they estimate to use labourers totalling 10-12 people. ==> my inquiry is that PF is applicable or not.
Anxiously awaiting for your kind clarification.
Thank you in advance for your kind clarification.
Best regards,
June
From India, Bangalore
1. The contractor is not registered for provident fund and the proposal quoted to us is exclusive of PF. ==> my inquiry is that our company who is principal contractor has to take care of provident fund or not.
2. As informed by the contractor, they estimate to use labourers totalling 10-12 people. ==> my inquiry is that PF is applicable or not.
Anxiously awaiting for your kind clarification.
Thank you in advance for your kind clarification.
Best regards,
June
From India, Bangalore
The construction of wall is not directly connected to the nature of work you are carrying out. Therefore, you need not contribute PF in respect of employees engaged for that work.
In respect of ESI contribution there are different views with regard to directly connected to the nature of work. However, following the decision in ESI Corporation Vs Standard Pottery Works. [ 2001 (3) KLT 55, 2001(4) LLN 377, 2001(II) LLJ 1208(Ker) ] employees engaged for construction of compound wall work was held to have no nexus with business of establishment and hence not covered by Act.
Regards,
Madhu.T.K
From India, Kannur
4250In respect of ESI contribution there are different views with regard to directly connected to the nature of work. However, following the decision in ESI Corporation Vs Standard Pottery Works. [ 2001 (3) KLT 55, 2001(4) LLN 377, 2001(II) LLJ 1208(Ker) ] employees engaged for construction of compound wall work was held to have no nexus with business of establishment and hence not covered by Act.
Regards,
Madhu.T.K
From India, Kannur
Dear friends,
if the wall is being constructed to guard a factory registered under the Factories Act'48, the Factories Act will be applicable. Otherwise, if the Work order Value is of >10 lakhs, the BOCW(RECS) Act'1995 will be applicable.
However, in both the cases EPF&MP Act,52 will be applicable if the establishment has already been covered under the act due to crossing 20 or more employees min bar. if 20 already crossed, contractor with even singe employee has to pay pf as the estb is covered.
Secondly, the contractor without allotted pf code may be given some time to get pf registration code and submit such documents with invidual pf codes of employees so engaged within a short date.
From India, Calcutta
if the wall is being constructed to guard a factory registered under the Factories Act'48, the Factories Act will be applicable. Otherwise, if the Work order Value is of >10 lakhs, the BOCW(RECS) Act'1995 will be applicable.
However, in both the cases EPF&MP Act,52 will be applicable if the establishment has already been covered under the act due to crossing 20 or more employees min bar. if 20 already crossed, contractor with even singe employee has to pay pf as the estb is covered.
Secondly, the contractor without allotted pf code may be given some time to get pf registration code and submit such documents with invidual pf codes of employees so engaged within a short date.
From India, Calcutta
Dear Sir
Thank you very muchf for your kind clarification. The purpose for this construction of compound wall is for social responsibility to a primary school.
In fact, we are a residential developer.
In conclusion, to construct a compound wall for social responsibility purpose with approximate 10-15 labourers by a unregistered contractor for PF, PF will be applicable and taken care by the principal contractor, won't it?
Pls. correct, if my understanding is wrong.
Looking for your kind confirmation.
Best regards,
June
From India, Bangalore
Thank you very muchf for your kind clarification. The purpose for this construction of compound wall is for social responsibility to a primary school.
In fact, we are a residential developer.
In conclusion, to construct a compound wall for social responsibility purpose with approximate 10-15 labourers by a unregistered contractor for PF, PF will be applicable and taken care by the principal contractor, won't it?
Pls. correct, if my understanding is wrong.
Looking for your kind confirmation.
Best regards,
June
From India, Bangalore
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