Dear Professionals/consultants,
We are an organisation undertaking erection and commissioning of various plants at different locations in the country. We have kept our organisation small so as to avoid getting into the mandatory PF /ESIC registration. However whenever we get orders every company still insists for this registration, even though it does not aplpy to us. Morevover of we dont do so, they deduct from our payments..
I find the whole thing unfair and a coercions to comply even though not applicable..Can anyone suggest why is it so and if any remedies available for such situations.
From India, Pune
We are an organisation undertaking erection and commissioning of various plants at different locations in the country. We have kept our organisation small so as to avoid getting into the mandatory PF /ESIC registration. However whenever we get orders every company still insists for this registration, even though it does not aplpy to us. Morevover of we dont do so, they deduct from our payments..
I find the whole thing unfair and a coercions to comply even though not applicable..Can anyone suggest why is it so and if any remedies available for such situations.
From India, Pune
Dear sir,
This is one of most efficient way to implement the employee welfares in globally.Today all public sector and MNC also following this as rule.As a contractor we are with public sector & MNC for past 7 years . too facing these problem for before 2 years.Finally we could realize one thing is "We can never run business without this registration"..
At Public sector they will never accept us if we are not have proper registration for PF/ESI where as private sector given a time for registration...
So you do better go with this ..This is my suggestion only...
From India, Tiruchchirappalli
1This is one of most efficient way to implement the employee welfares in globally.Today all public sector and MNC also following this as rule.As a contractor we are with public sector & MNC for past 7 years . too facing these problem for before 2 years.Finally we could realize one thing is "We can never run business without this registration"..
At Public sector they will never accept us if we are not have proper registration for PF/ESI where as private sector given a time for registration...
So you do better go with this ..This is my suggestion only...
From India, Tiruchchirappalli
I agree, bcoz that's the only way to run the busines..However we had been doing our bit by removing Workmens Compensation policy for each and every site.But this too is unacceptable as i have found out..laws need to be made easier to work and implement as every one know contract labour is not stable and we will end up doing only administrative wrokk
From India, Pune
From India, Pune
Dear Hemant,
Please note that if PF/ESI is applicable to the establishment of Principal Employer then contractor's labour/employee is also covered under the Act. This is mandatory you can not escape on the ground of number.
Please comply with the provisions of Act.
NNT
From India, New Delhi
Please note that if PF/ESI is applicable to the establishment of Principal Employer then contractor's labour/employee is also covered under the Act. This is mandatory you can not escape on the ground of number.
Please comply with the provisions of Act.
NNT
From India, New Delhi
Dear friend,
As an employee, one can get many benefits from ESI and PF though not in short run but strongly in long run. Since ESI is a welfare,insurance measure, it is highly helpful to an employee and his family. As for as PF concern the deduction may be burden presently but is a handful savings at the time of discharge.
As an employer, management can get many remedies out of the PF and ESI - it can be understand only by the managerial persons who met some incidents in connection with the ESI/PF and Management.
From India, Madras
As an employee, one can get many benefits from ESI and PF though not in short run but strongly in long run. Since ESI is a welfare,insurance measure, it is highly helpful to an employee and his family. As for as PF concern the deduction may be burden presently but is a handful savings at the time of discharge.
As an employer, management can get many remedies out of the PF and ESI - it can be understand only by the managerial persons who met some incidents in connection with the ESI/PF and Management.
From India, Madras
these are social welfare measure provided to an employee whether he is daily wager, contractual or permanent. In case even in your own orgination you have less then the number of employee required for implementation/applicability of these Act. But when you deployed worker at work site then Automatically they will be treated your employees as per applicable labour laws.
And you can not escape from the liabilities by not providing these social benifit. You are talking about withdrawing of Employee Compenstiaon policy but suppose in case any worker met with an accident as the construction site are prone to fatal accidents, then in without Compensation Policy you will be liable for the same.
ESI/ PF contribution is very less for the employer but benefit a more to the employee.
And you can not escape from the liabilities by not providing these social benifit. You are talking about withdrawing of Employee Compenstiaon policy but suppose in case any worker met with an accident as the construction site are prone to fatal accidents, then in without Compensation Policy you will be liable for the same.
ESI/ PF contribution is very less for the employer but benefit a more to the employee.
Please abide by the law of the land. The welfare laws have been made for proper compensation of the employees, especially grass root level employees.
The question is not to run a company, the question to run the country by providing better facilities to all citizens. Those companies that bypass these laws by some hook or crook are actually harming the economy by restricting flow of money.
From India, Delhi
The question is not to run a company, the question to run the country by providing better facilities to all citizens. Those companies that bypass these laws by some hook or crook are actually harming the economy by restricting flow of money.
From India, Delhi
Dear Hemant,
PF/ESI
The act became applicable to you on any day you employee 20 employees (Include contract employees) on any preceding 12 month.
I expect an organization undertaking erection and commissioning of plant would definitely have more than 20 employees directly or indirectly.
These are social security benefits provided to employees, so kindly register and secure the future for those who are securing you organization future. This will also motivate employees and increase productivity.
Your principal employer will ask PF and ESI number of your employees when you will deploy them on their site.
Now days rules are getting more strengthen appropriate authorities may chare penalty and damage to your organization. BE PROFESSIONAL.
From India, Bhubaneswar
PF/ESI
The act became applicable to you on any day you employee 20 employees (Include contract employees) on any preceding 12 month.
I expect an organization undertaking erection and commissioning of plant would definitely have more than 20 employees directly or indirectly.
These are social security benefits provided to employees, so kindly register and secure the future for those who are securing you organization future. This will also motivate employees and increase productivity.
Your principal employer will ask PF and ESI number of your employees when you will deploy them on their site.
Now days rules are getting more strengthen appropriate authorities may chare penalty and damage to your organization. BE PROFESSIONAL.
From India, Bhubaneswar
sub: Regarding Leave Hi, I am satheesh i am working as a hrd. I have to knoe the leave rules and act. Kindly do the needful
From India, Tirunelveli
From India, Tirunelveli
Dear Hemant et al, Please have this clarity that PF & ESI is applicable on the establishment wherever work takes place and since at such place the employees (including that of contractors) exceed 20, the PF & ESI becomes applicable on all. Principal Employer, instead of it accounting for all such workmen under its code insist on the convenient condition that the contractor is to have valid PF & ESI registration. Hence, even if your strength is below 20, PF & ESI coverage are applicable and from the perspective of PE it is always advantageous to limit off loading work to PF & ESI registered parties. But pl. check whether ESI coverage is there at construction site which in many cases are in remote areas.
Regards KK
From India, Bhopal
Regards KK
From India, Bhopal
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