Are the owner cum drivers on contract vehicles in IT sector for pick up & drop need to pay PF/ESI? The principal employer has a contract of vehicles facility for pick up drops and not the drivers.In that case the principal employer should give the appointment letter to all the drivers if PF ESI is forced to pay.
From India, Pune
From India, Pune
Hi,
It is better to have a service contract with the bus owner. Thus you dont need to employee a driver. what you want is that your employees are picked on the dates sspecified. Since you dont give salary to the driver, you dont need to pay PF/ESI. But the payment you are giving to the bus owner, you may have to give service tax.
Regards
Sebastian K S
From India, Bangalore
1It is better to have a service contract with the bus owner. Thus you dont need to employee a driver. what you want is that your employees are picked on the dates sspecified. Since you dont give salary to the driver, you dont need to pay PF/ESI. But the payment you are giving to the bus owner, you may have to give service tax.
Regards
Sebastian K S
From India, Bangalore
Dear Vasant,
Just tell me how this arrangement is different from some security agency? For security agency, to perform their operations, you provide them facilities like furniture, shades for the security guards, locker to change their dress etc. Security personnel come, do their duties and go back. For providing these services, if you check their bill, you will find that the component of PF/ESI too.
Therefore, in your case owner of the drivers' agency, should include PF/ESI in the bill itself. To be on the safer side it is better to mention the PF/ESI component against each individual too. Secondly, ask the agency to provide xerox copy of monthly return also.
For Sebastian KS: - You have written that "It is better to have a service contract with the bus owner. Thus you dont need to employee a driver. what you want is that your employees are picked on the dates sspecified. Since you dont give salary to the driver, you dont need to pay PF/ESI. But the payment you are giving to the bus owner, you may have to give service tax."
In the above case, you need to pay ESI. If the labour component is not mentioned in the service contract then you have to assume 40% of the contract amount is labour charge and pay the ESI monthly. Onus for payment is on the principal employer in such case.
DVD
From India, Bangalore
Just tell me how this arrangement is different from some security agency? For security agency, to perform their operations, you provide them facilities like furniture, shades for the security guards, locker to change their dress etc. Security personnel come, do their duties and go back. For providing these services, if you check their bill, you will find that the component of PF/ESI too.
Therefore, in your case owner of the drivers' agency, should include PF/ESI in the bill itself. To be on the safer side it is better to mention the PF/ESI component against each individual too. Secondly, ask the agency to provide xerox copy of monthly return also.
For Sebastian KS: - You have written that "It is better to have a service contract with the bus owner. Thus you dont need to employee a driver. what you want is that your employees are picked on the dates sspecified. Since you dont give salary to the driver, you dont need to pay PF/ESI. But the payment you are giving to the bus owner, you may have to give service tax."
In the above case, you need to pay ESI. If the labour component is not mentioned in the service contract then you have to assume 40% of the contract amount is labour charge and pay the ESI monthly. Onus for payment is on the principal employer in such case.
DVD
From India, Bangalore
Hi,
Contract Labour (Regulation & Abolition) Act is applicable to the workers of the contractor, not on the contractor. Therefore, the contractor driving the vehicle himself is not eligible for PF/ESI benefits.
Principal employer should not issue any kind of appointment letter to the workers of the contractor.
Thanks,
M L Barber
From India
Contract Labour (Regulation & Abolition) Act is applicable to the workers of the contractor, not on the contractor. Therefore, the contractor driving the vehicle himself is not eligible for PF/ESI benefits.
Principal employer should not issue any kind of appointment letter to the workers of the contractor.
Thanks,
M L Barber
From India
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