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ankitavashi
dear group members,
I have query regarding provident fund contribution: details are given as under
ours is a Manufacturing unit. we have no such contract workers. our security staff, house keeping staaf are regular employees on muster roll. No contract labour system is prevailing in our industry. As we have garden in surrounding area of our factory. we have done AMC(Annual Maintenance Contract) with agency for garden maintenance. Agency provides us bill on monthly basis and we are paying them according their bills. These such agencies are doing business not only with us. They have many clients like us.
In this kind of case employer is liable to pay PF contributions or not of workers provided by such agency? we have been asked by pf authority to make contributions of these workers. who can be the principal employer in these type of case.
you are requested to provide some solution and case laws for supporting this matter.
With Regards,
A.V.Vashi

From India, Indore
kishorpp
14

Dear Mr. Vashi,
Firstly clarify how many wages paid to that employees? if less than 6500 then you have to paid pf if higher than 6500 then you have to fill form 11 from that workers,
but as per minimum wages act central or state wages rate higher than 6500 .

From India, Thana
bijay_majumdar
365

Hi,
As a principal employer,it will be the responsibility of the principal employer to fulfill the statutory obligations against workers working in the company premises irrespective of the fact whether the workers are on contract or not.
Thanks
Bijay

From India, Vadodara
ankitavashi
Mr.Bijay Majmudar, if such agency have manu clients like us then who can be the principal employer?
From India, Indore
bijay_majumdar
365

Mr. Vashi,

You as manufacturing Company hired agency on AMC,and the fact of the matter is the amc is also a contract therefore the terms of agreemnt in such AMCs should mention that statutory compliance's against workers provided by such agency under such contract will be borne by the agency and the charges against such compliance will be borne by agency and not the company.If the AMCs is not set out properly, by default, it becomes the responsibility of the company as principal employer to borne the statutory obligations as workers are working in his premises and rendering services to him.

Agency may have many clients like your company,the fact is SLAs & agreement terms of AMC matters.

Also the whole matter can be brought under the purview of contract labor act and then studied as it seems it involves manning issues for the maintenance.

Also if I am not wrong - AMCs should not include manpower services/soft services under maintenance.contracts or else AMCs requiring manpower to provide such services should include clear clauses in the agreement terms on statutory compliance.

Bijay

From India, Vadodara
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