Dear Madhu,
As far as MBA Graduates are concerned, you cannot deduct their PF/ESI from their stipend because their jobs are temporarily basis or you can check from your company what policies have been made for these Fresh Graduates. If the policy allows to bring them on rolls then you can pay them stipend and deduct the PF/ESI accordingly.
thanks & regards,
Chitragya
From India, New Delhi
7As far as MBA Graduates are concerned, you cannot deduct their PF/ESI from their stipend because their jobs are temporarily basis or you can check from your company what policies have been made for these Fresh Graduates. If the policy allows to bring them on rolls then you can pay them stipend and deduct the PF/ESI accordingly.
thanks & regards,
Chitragya
From India, New Delhi
Hi,
As Mr.Madhu has rightly said that if contractor doesn't make payment of PF/ESI on time, it is a responsibility of a prinipal employer to ensure the timely payments of contractor.Otherwise it becomes liability to employer.
With respect to contrcators payment, if you hold it for short or long time ultimately the contract workers will get suffered. This may become IR issue.The best part of it is either to enforce the discipline for timely payment or terminate the contract
Sameer Deshmukh
From India, Pune
As Mr.Madhu has rightly said that if contractor doesn't make payment of PF/ESI on time, it is a responsibility of a prinipal employer to ensure the timely payments of contractor.Otherwise it becomes liability to employer.
With respect to contrcators payment, if you hold it for short or long time ultimately the contract workers will get suffered. This may become IR issue.The best part of it is either to enforce the discipline for timely payment or terminate the contract
Sameer Deshmukh
From India, Pune
Dear Chitragya,
I didn't say that stipend given to MBA interns (I repeat Interns) will attract ESI/PF. But if these trainees are on rolls of the company, they will be covered subject to the verdict on EPF.
The thread in fact relates to contractors failure and the liability of principal employer. There is a thread in Labour and Employee Relations forum of this site regarding a calculation of interest and damages by Mr. Tiwari Sudhir. The same is very useful in the present discussion. Please follow the link.
https://www.citehr.com/133673-calcul...tml#post565375
Regards,
Madhu.T.K
From India, Kannur
I didn't say that stipend given to MBA interns (I repeat Interns) will attract ESI/PF. But if these trainees are on rolls of the company, they will be covered subject to the verdict on EPF.
The thread in fact relates to contractors failure and the liability of principal employer. There is a thread in Labour and Employee Relations forum of this site regarding a calculation of interest and damages by Mr. Tiwari Sudhir. The same is very useful in the present discussion. Please follow the link.
https://www.citehr.com/133673-calcul...tml#post565375
Regards,
Madhu.T.K
From India, Kannur
Hi,
Normal practices in the organisatio is that when the contractor submits the bills, the bills should accompany attendance sheet, wage sheet & statutory payment challan copy without which the contractors bill cannot be certified for the payment. In your case, it seems there has been lapses and the bottleneck situation has arise. Mr. Madhu rightly said that in case, if the contractors fails to remit the statutory dues then the entire liability comes under the Principal Employer.
I would suggest that instead of taking any harsh decision at this point of time, you need to talk to the contractor and try to put pressure on him to fulfil all the statutory dues. You may convey him that if he fails to produce the documents, the company will not be in a position to continue with the contract and outstanding of bills alongwith the security deposit will be adjusted to fulfil the statutory dues.
With regards to querie about the penalty, you need not worry at this point of time, focus on how you will get the above things done from the contractor.
Thanks.
Sunil
From India, Pune
Normal practices in the organisatio is that when the contractor submits the bills, the bills should accompany attendance sheet, wage sheet & statutory payment challan copy without which the contractors bill cannot be certified for the payment. In your case, it seems there has been lapses and the bottleneck situation has arise. Mr. Madhu rightly said that in case, if the contractors fails to remit the statutory dues then the entire liability comes under the Principal Employer.
I would suggest that instead of taking any harsh decision at this point of time, you need to talk to the contractor and try to put pressure on him to fulfil all the statutory dues. You may convey him that if he fails to produce the documents, the company will not be in a position to continue with the contract and outstanding of bills alongwith the security deposit will be adjusted to fulfil the statutory dues.
With regards to querie about the penalty, you need not worry at this point of time, focus on how you will get the above things done from the contractor.
Thanks.
Sunil
From India, Pune
Hi,
I am working as contractor with MNC from last one year, i have been paid my salary in cash thru consultant. they dont cut any ESI/PF.
can any body suggest is this correct norms.
Thanks in advance.
From India, Delhi
I am working as contractor with MNC from last one year, i have been paid my salary in cash thru consultant. they dont cut any ESI/PF.
can any body suggest is this correct norms.
Thanks in advance.
From India, Delhi
Dear Madam,
If you have communicated to MBA (pursuing/fresher) guys about their salary bifurcation and confirmed their was no EPF account for them, and you have hired them for 6th month as trainees then there is no need of EPF account, state government or central will not be authorized for interfere/ execute law by any mean to your company. But all should be in written form.
Regards,
Sunil Kumar
From India, New Delhi
If you have communicated to MBA (pursuing/fresher) guys about their salary bifurcation and confirmed their was no EPF account for them, and you have hired them for 6th month as trainees then there is no need of EPF account, state government or central will not be authorized for interfere/ execute law by any mean to your company. But all should be in written form.
Regards,
Sunil Kumar
From India, New Delhi
Dear,
You can make system for contractors i.e.
1. Ist insure that they have valid PF & ESI numbers.
2. You can make a chart of total PF & ESI have to be deducted from the contract labour including employers share.
3. You can hold that total amount from the contractors payment and release the same as soon as they deposit the challan to your department.
This is just basic your skill how to tackle the contractors. Always keep in mind that contractors try to fool the HR guys but you have to be smart.
It is mandatory for the principle employer that his contractor are depositing the PF & ESI otherwise ESI & PF officers will challan the factory and employer have bear all the amount with intrest.
I do hope you will tackle the problem. If you have any problem write to me on my personal email id
, i will try to shortout your problem.
All the best........
From India, Solon
You can make system for contractors i.e.
1. Ist insure that they have valid PF & ESI numbers.
2. You can make a chart of total PF & ESI have to be deducted from the contract labour including employers share.
3. You can hold that total amount from the contractors payment and release the same as soon as they deposit the challan to your department.
This is just basic your skill how to tackle the contractors. Always keep in mind that contractors try to fool the HR guys but you have to be smart.
It is mandatory for the principle employer that his contractor are depositing the PF & ESI otherwise ESI & PF officers will challan the factory and employer have bear all the amount with intrest.
I do hope you will tackle the problem. If you have any problem write to me on my personal email id
All the best........
From India, Solon
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls