I am a transport contractor. I have taken tender from food corporation of india. I have to supply trucks to the fci from the godown to the railhead for foodgrains. My contract is only for transportation. Whnever there is special placed only on that date i have to dupply the trucks.
I am hiring trucks from the truck union and sometimes i have to hire truck from the market also for which i have paid per kilometer charges to the truck union or to the owner of the vehicle if so hired from the market.
I have no relation with the truck driver. I have directly made payment either to the truck union or to the owner of the truck as the case maybe.
Now my question whether there is any esi liability arises to me on the part of truck driver.
The esi department said verbally that on the transportation charges paid , they will assume 15% to 22% of the total charges paid as the drivers labour.

From India, Ludhiana
Anonymous
68

YES VERY NICE QUERY
EYE OPENING LABOUR SITUATION...PERVERTED MALAFIED PRACTICES OF CONTRACT LABOUR. FUTILE TRIAL ..FOR ESCAPING RESPONSIBILITY OF ENGAGED LABOUR IN INDIA..
OK LET'S COME TO.POINT.
.WHENEVER YOU HAVE ENTERED INTO THE ABOVE CONTRACT TO SUPPLY OF TRUCKS ..ALL THE TRUCK DRIVER S AND CLEANERS AND OTHER STAFF. HAVE BECOME YOUR EMPLOYEES AUTOMATICALLY.
YOU FEEL THAT TRUCKS ARE INANIMATE THINGS.. WHAT IS THIS ESIC ETC. LABOUR LAWS.ATTRACT ME? ITS WELLKNOWN FACT
THAT TRUCKS WON'T MOVE WITHOUT DRIVER S AND CLEANERS AND ALL RELATED STAFF .WHY DO THEY WORK FOR YOUR GAINED CONTRACT WORK.?
Once u paid indirectlytruck.owners temporarily.or continuously
You should be treated as sole contractor for all workers.IT IS CLEAR
..You may understand like this. All those sub suppliers of trucks through your name amounts received from you are subcontractor s of you. THEY SHOULD MAINTAIN AND ANSWERABLE TO ALL LABOUR LAWS IMPLEMENTATION BUT SOLE .BURDEN LIES ON YOU
. IF THEY FAIL YOU ARE DIRECTLY RESPONSIBLE AS LONG AS YOU ENGAGE ANY SINGLE TRUCK AND USED FOR THE ABOVE CONTRACT SIR OK. pls note that you are also should be responsible under
WC act..(EC act)
.

From India, Nellore
Your ESI inspector has only verbally told you that you may be assessed and there is no official communication. Now the situation being a contract FOR service there is no applicability of Contract Labour (Regulation and Abolition) Act and as such your bill cannot be assessed for payment of ESI. Your agreement with FCI is not to supply drivers who will drive the vehicles/ trucks owned or taken on lease by the FCI but to transport the goods in return for a charge which is purely based on the kilometer or tonnage and has nothing to do with how much you pay the drivers by way of wages. This is just like an employer having a contract with a taxi cab provider or a restaurant for supplying tea and snacks for the employees. Here the travel agent or the restaurant person is selling his goods or service and the employer is just BUYING it. On the other hand if the arrangement is that we have a few cars and we take the drivers from an agency and utilise their service and pay the agency an amount which will include the drivers' wages and an element of margin for the agency. In the similar way, suppose the restaurant person is engaging a few of his workers in your premises and they make tea and snacks with the milk, rice, ghee and other materials you provide and using the facilities within your premises, then the arrangement is for contract with the restaurant person for supply of manpower. In these cases the provisions of CLRA Act will be applicable and ESI and PF will be payable on the amount of labour charges that you make.
From India, Kannur
Glidor
632

such situation stands only when the transport contractor provides the names and other details to service recipient under form XIII. in place of providing names and details of person driving there should be used DL no and Vehicle no only, to avoid such situation, on any specific day or concurrent day if the sheet manpower strength exceeds 20 then it automatic comes under the relevant labor laws
for a cab hire, we do hire a single driver. but ola and uber can not deny the liability if driver service is provided by them. they make it signed by the cab owner to get liable if any such situation accrues in future, also they dont provide bulk cars to a single corporate without compliance of their formalities


Glidor
632

under the transport service, most of the drivers are owners of the vehicle or have less then 4 vehicle in single person head , so they get exempt from such liabilities, vice versa a train driver and TTE are the permanent employee of indian railways , and their labor liabilities are discharged,
syndicate is just to make communication between owner of fleet and the person who is hiring the fleet, they have no role in discharge of labor liabilities,
Now after GST concept , if the transporter wants to avail GST exemption, then he has to comply with the labor law formalities, or get covered under GST and charge + pay GST ...coz a 20+ workers fleet owner gross turnover per annum must not be below the GST exemption limit.


I agree with Madhu Ji.
There is no direct relationship with the truck driver and you (as a transport contractor). Neither the drivers are under your supervision, controlled,monitored, payed by you. You have nothing to do with who is driving the vehicle. No driver or truck has been fixed for this complete process neither the end service provider. Along with, you claim your payment from FCI and paid to the end service provider for per km rate.
There is no labour related liability arises.

From India, Ambala
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