Dear Seniors, Please advise on the below-mentioned.
Company: Civil Interior designing
Q: Engaged an external civil contractor labours to work in the site and later given to understand that the contractor is not maintaining the statutory part such as PF&ESI to his labours.
What is the procedure to compensate for the work previously done?
Regards
Venu

From India, Bengaluru
If there is PF & ESI Codes of the organization, it will be required to calculate the past liabilities and to deposit the same with the authorities.

Penal interest etc. will also be required to pay after paying the original due.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi
KK!HR
1534

There is a legal point in your favour as regards non-applicability of this work from EPF Act 1952 is concerned. The EPF act envisages coverage of all the persons engaged ín or in connection with the work of the establishment'. The work of civil interior designing is not an integral part of the work that is to be done in the firm, it is presumed. So, though the work is carried out in the premises it cannot be said to be the liability of the Principal Employer to ensure coverage. A doubt remains for this work, did the contractor deploy 10/20 workmen, the threshold limit for compliance of ESI/PF Acts?
A practical instance that has happened is that there was an instance of a small culvert in the factory premises caved in and it was got redone by a contractor who had no PF registration. Later, when the EPFO inspector questioned us, we used this legal principle to defend ourselves and they left it without precipitating it into an issue of non-compliance.

From India, Mumbai
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