archanashukla Started The Discussion:
I am working with a hotel. Here there are some employees who are not on our payroll rather on the contractor's payroll.so my question is we are paying the contractor the amount of his services rendered but has asked him to pay the esi/epf for the employees on his payroll.If he does not do the same then is it the responsibility of the principal employe to do it?
Please answer me the same as soon as possible.
Always remember. Contractor can escape anytime. Thus the principal employer is accountable for everything as far as anything pertaining to the contract labour management is concerned.
Ask your contractor to produce PF and ESI challans everymonth and if he fails to do so, hold back the payment payable to him.
hi archana yes it is must if the contractor will not deposit the ESI,PF then being a principal employer u have to deposit the amount with fine. so better tell contractor to produce there monthly return challan copy of every month before clearance of there Bill. or deduct the PF ESI amount from there Bill & clear rest amount and deposit own.
secondly for siva since the principal employeer have the PF, ESI code so the question of 20 is not arise for there . even though contractor will deploy 2 labour they have to deposit Pf,ESI of 2 people since employer have own PF,ESI .
Greetings for the day,
First of all tell me that your establishment is covered under ESIC/EPF or not. If covered than your contractor is covered under the ESIC/EPF or not. If not tell your contractor to get coverage under the same as because both the concern are provide social security to the employees of unorganised sector. If the contractor is providing the labour to you ask him to pay the esi/epf contribution in favour of labourers immediatly if he unable to do so the liablity must fall to the principle employer for whom the job work is being carried out.
thanks & regard,
sumit kumar saxena,
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