Hi everybody,
Please help on this topic. if a contractor have no P.F & E.S.I code no. Can he remitt the E.P.F & E.S.I contribution for his employees through the Principal Employer E.P.F & E.S.I Code No. Is there any legal points in this matter please mention it.
Regards,
Paulraj

From India, New Delhi
Hi paulraj,
I contractor does not have any code for PF or ESI, neither he can deduct the money against PF/ESI nor he can get this amount deposited through the principle employer. if is depositing the amount for employees on third party role, these employees would be considered as a part of principle employer's headcount.
Hope this clears your doubt.
Mohit

From India, Delhi
hi i am not clear about your explanation in respect of third party role. plz once again explain the same topic rgrds ram
From United States, Southfield
Yes he can.But as far as possible,he should get a seperate code number under both acts,since if there was a dispute with the regards of claiming permanency,this factor could be in the favor of contract workers.
Regds.

From India, Mumbai
hi all,
it's the duty of the principal employer to see that contractor has a proper pf no and esi code no before sanctioning the contract to the concerned contractor,as failure to comply with the returns would be looked as a failure of principle employer.


If the principle employer allows the contractor to use his PF & ESI codes for depositing contractor employees' PF & ESI amounts, such employees can be deemed to be in the employement of the principle employer.
ASSharma

From India, New Delhi
Hi,
If principal employer allows contractor to remit the contribution for contractor employees through principal employer code number then, who can sign the claiming forms(form 19 & 10C).
regards
paulraj

From India, New Delhi
hi all,
in continuation of what i stated earlier there is one option of remating the contribution of the contractual employees through the a/c of principal employer but that would be an extreme step, there is a pitfall in this step i.e that a direct relationship howsoever nascent it might be is established between the principal employer and the contractual workmen.this is my view but no precedence in terms of litigations over such situations i have come across, so any views and knowledge on this issue is welcome,as it shall clarify my doubts regarding this point.
regards
rk


Dear Paulraj,
Yes, for ESI the contractor can be covered under the Principal Employer's Code. There is a column in ESI Membership form where you are required to put in if the employee is working directly or through contractor. We all do it and there is no problem.
Now for EPF the Contractor need to apply himself. One Copy of Original Form V under Contract labour(Regulation and Abolition) Act and an undertaking by the Principal Employer to fulfill alll obligations along with the Application Form need to be submitted to the PF Authorities.
There is also a provision for alloting sub codes in PF. Kindly meet the PRO of EPF in your region/locality for further details. Carry all details realting to Manpower Strength of all Contractors, Date of Engagement, date of expiry of Contracts, Form V issued along with your Registration under Contract Labour Act.
Regards,
SC
Regards,
SC

From India, Thane
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