Hello all,
As per the "employee" definition in ESI Act:
"...who is employed by or through a immediate employer on the premises of the factory or establishment or
under the supervision of the principal employer or his agent, on work which is ordinarily part of the work
of the factory or establishment or which is preliminary to the work carried on in or incidental to the
purpose of the factory or establishment..."
My question is, suppose a school hires a contractor for white wash. So, whether the workers employed by the contractor are employees for the school as per ESI Act above definition, and do they need to deduct ESI contribution from the payment to the contractor, if the contractor is not registered under the Act?.
Please explain in simple language.
From India, Noida
As per the "employee" definition in ESI Act:
"...who is employed by or through a immediate employer on the premises of the factory or establishment or
under the supervision of the principal employer or his agent, on work which is ordinarily part of the work
of the factory or establishment or which is preliminary to the work carried on in or incidental to the
purpose of the factory or establishment..."
My question is, suppose a school hires a contractor for white wash. So, whether the workers employed by the contractor are employees for the school as per ESI Act above definition, and do they need to deduct ESI contribution from the payment to the contractor, if the contractor is not registered under the Act?.
Please explain in simple language.
From India, Noida
Yes. As per the definition the contractor payment would attract ESI. My suggestion is let the contractor submit bills 1) cost of materials 2) cost of hiring equipment, 3) labour charges separably. You may have to deduct on the Labour charges , the Management Contributions of ESI and pay to ESIC.
From India, Madras
294From India, Madras
Thank you for your reply. I want to ask further that how the contribution is paid online? Do I have to create employee IP number on ESIC portal?
From India, Noida
From India, Noida
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Job Work-outwork employees.docx