how can i check contractor PF is deposited or not, if there is more persons there is a chance for fraud. one by one make more time. randomly there is chance for mistake. ecr pdf sheet provided by contractor is editable. how can we check.
From India, Delhi
Hi, Visit to website www.epfindia.gov.in where you will find the link "For Employers" in which you will get Establishment search link where you have to enter PF code will provide you all details you required.
Regards,
Ravindra

From India, Ahmedabad
nathrao
3131

Checks on contractor for EPF payments.
The Principal Employer must ensure that the contractor is registered with EPFO before award of the contract. After award of the contract, the contractor details should be entered in the EPFO portal.
Payments due to the contractor should be made only after duly verifying that the statutory PF payments have been made to EPFO. This can be verified either DIRECT from the EPFO portal or insisting on a payment receipt obtained by the contractor from the EPFO portal while making payment.
If the contractors have separate PF code number, the FINAL responsibility of ensuring the compliance under the EPF Act, for the employees working through the contractors rests with the Principal Employer.
The Principal Employer is empowered to deduct EPF dues from the contractor’s bill and deposit the same against the contractor’s code number or their own code number.
Also, a provision on the official website of the EPFO, has been added under the “establishment search option” to verify whether the contractors are regularly depositing Provident Fund Contributions in respect of their employees.
These checks are basic counterchecks by PE.Time spent on these checks are essential to avoid any liability on PE subsequently. NO shortcuts are there.

From India, Pune
Anonymous
294

It is well settled in law as follows:
When a contractor has got an independent code number, his or her liabilities get increased vis-à-vis the employees. On allotment of code number, the Provident Fund Authorities recognize the contractor as ‘establishment’ since it has complied with all the prescribed conditions. A principal employer cannot be held responsible for the omissions and commissions of the contractor’s employees. The Scheme of the Contract Labour (Regulation & Abolition) Act stipulates that the principal employer will not be supervising the workers of the contractor otherwise the contract labour system will be rendered as sham, ruse and camouflage as held in in Steel Authority of India Ltd. vs National Union Water Front Workers, 2001 LLR 961 (SC).

From India, Madras
nathrao
3131

As per Section 2 (f) of the Employees Provident Funds and Misc. Provisions Act, an employee is defined as any person employed in any kind of work, and who gets its wages directly or indirectly from the employer, and includes any person employed by or through a Contractor, in or in connection with the work of the establishment. Therefore taking the literal meaning of the section, the Principal employer can also be held responsible for payment of PF contribution. But there are also certain safeguards for the Principal Employer. The liability only arises, when the Contractor, defaults in making the PF contribution.
Contract agreement can also be made in a legal way covering liability of contractor clearly with regard to labour compliances.

From India, Pune
Anonymous
294

The same was argued in the above referred case .When asked about the justification of such demand, the Authorities under the Provident Fund Act refer to paragraph 30(3) of Employees’ Provident Fund Scheme, 1952 providing that “it shall be the responsibility of the principal employer to pay both the contributions payable by himself in respect of the employer directly employed by him and also in respect of the employees employed by or through a contractor and also administrative charges”.
Held that It is pertinent to state here that paragraph 30 of the Scheme could be relevant only till 22nd March, 2001 when the contractors were not allotted code numbers under the Provident Fund Act. However, for the applicability of Provident Fund Act, a contractor is treated as an establishment when code number is allotted after satisfying about completion of all the formalities. As an independent establishment, it is responsible for payment of EPF contributions and other dues payable under Provident Fund Act, the principal employer cannot be asked by the Provident Fund Authorities in case a contractor holding independent code number defaults the Provident Fund dues. It is pertinent to state here, that the contractor in the capacity of an employer of its ‘establishment’ pays 0.85% towards administrative charges in addition to its matching contribution which is termed as ‘employers share’ of EPF contributions.

From India, Madras
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