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Contractor has not produced the record while audit, as they are no more working with us, director of esic has ordered to pay the full contribution on the transanction made with the contractor, we have submitted a letter stating there independent code and verify the same at your end, kindly suggest if the contractors has not produced the record, what can we do and whether we can demand the inspection report of the contractor from esic
From India, Mumbai
Hi Friends,
It is clearly mentioned in the act, that for any violations in statutory payments and compliance the Principal Employer will be held responsible for the same.
And we cannot question the acts and laws hence Govind you cannot say "If I am paying the contractor, then how am I responsible for non payment".
For eg, if you pay fees for your sons education in the school and if he not doing well in exams whom will you hold responsible for his results / who will the teacher call if he fails, ultimately you are responsible the same way the principal employer is responsible as the laws.
Kind Regards,
Sanjeev

From India, Pune
Dear Friend,
As the Principal Employer, it will be your responsibility to ensure that the Contractor is complying with all statutory obligations and again as the Principal Employer you will be responsible for any violation of the same by the Contractor.
Vasant Nair

From India, Mumbai
Firstly you ask contractor to obtain Licence under CLRA Act.
Secondly to obtain ESI & P.F Code - In such a situation if supervision is made by contractor then Principal Employer is not liable for either ESI or PF.
If contractor has not obtained ESI & PF code then Principal employer is liable, can deposit in his code.

From India, Jamshedpur
Hi,
The principal employer cannot escape the responsibility, if any discrepencies are found. It is always advisable to make cross checks at periodic intervels. It is generally seen that, once a contractor is engaged, the employer sleeps, while the contractor goes about exploiting the situation. My advise therefore is, be vigilant, cross check information, assign the responsibility of supervision to one of your regular staff members. Let the contractor know, if any discrepenciy of fraudulent practice is found he will be blacklisted, including action as per law.
Cyril

From India, Nagpur
As a Principal employer, you are responsible for the acts of omission and commission on the part of the Contractor. One must take all precautions to ensure that statutory obligations are being complied with by the contractor. It would be safe to deduct the amount payable and remit the amount to the Authorities concerned. Alternatively, ask the contractor to submit the copies of challans/receipts to the office.
We had come across a case where the contractor was paying the contribution of PF in the names of some family members while the workers employed were very different. It is advisable to keep checks on all records
Do not allow the contractor to take you for a ride.
Cyril

From India, Nagpur
Dear All, as a principal employer you are fully responsible for wage payment, pf, esi , but you are not responsible for bonus and gratuity of contarctual labours. Regards A.K.Gautam
From India
Principal employer is liable for PF & ESI. If you have any doubt you pay and deduct from monthly payments made to contractor
From India, Jamshedpur
Hi,
As a Principal employer, you cannot escape from the responsibility of compliance with statutory obligations on the part of contractor. It is always advisable to have a checklist ready, to verify such information. You should ask the contractor to show you the documents in support of payment of statutory dues of employees. It is generally seen that once a contractor is appointed, the employer representative seem to take things easy. This can have serious repercussions.
Cyril

From India, Nagpur
For above issue comes your company will be responsible which the company and where the employees are working ,, and when ever you pay the bill ask them to submit the ESI &PF Paid challan for documentations .
Ashwath

From India, Bangalore

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