Contractor's Liability - CiteHR
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Dear all,
Our factory have strength of 400 employees.It is a manufacturing firm. We have contractors for different other than our company's employees. I want to know
1. If a contractor is taking contract of more than one factory including ours, then why should we are liable for their ESI & PF matters. Can contractors give their home address and get any kind of licence so that we just get their challan. They are working in our factory permises.
2. If they are hving less than 9 workers each then do they need to get ESI & PF return again if they are working in our factory permises?
Waiting for experts advice on this urgently.......
Vijay Vyas
(Manager - HR)

Hey.... 10 views but no reply??????? I am still waiting for the experts to reply on this..... Vijay Vyas (Manager - HR)
Contractor Labour and regulation act, 1971, envasiges that a contractor is suppose to obey the rules and regulation as well assure for the statuatory compliance prscribe in Act. Herewith a principle employer is suppose to come on the accuracy of compliance as well get to provide all the facilities including PF & ESIC challans.
2) Obviousely a workmen who is working under any premises is liable to get benefit of ESIC and PF because they as well come under Factory Act, 1948.

1. Company is not laible to mentain any PF or ESIC records for contractor but it's neccesary to check they are paying or not . b'cos if contractor fail to pay the principle employer is resposible.
2. pl. let me know how many licence yr contractor is having.
Santosh singh

Dear Mr. Manoj and Mr. Santosh,
Thank you for helping. My company's contractors have a licence under shop and establishment act. But the problem I am facing is that he sends employees to many factories including ours but we are deducting ESI and PF OR making sure that he deducts same of his workers but won't it be a duplicacy in case the other company, where his workers are going other than ours, is deducting the same.
We have 18 contractors having staff of 9-15 workers each.
Vijay Vyas
(Manager - HR)

When you company is holding the registration of ESIC and EPF, even if the contractor Labour are 9-15, you have to see that the contributions against ESIC And EPF are deducted and the employer i.e the contractor share is also deposited in respective accounts.
You being a principle employer can not go back for the liability of such statutory payments, if the contractor fail to make payments, hence it is your obligation to verify the payment challans every month from the contractor.
Even the labour change to other companies, you got to deduct on the wages paid by you to such contract labour worked with you only on the days of work done and the wages paid by you.
Mohan Rao
Manager HR

Your payments to contractor ends with the contract agreement. In case as per contract the applicable chages are exclusive statutory payments and the contracted workmen are covered by under ESI & PF by the contractor, then u need to pay the charges.
In case of making statutory payments separtely then the bills should be enclosed with the challans as proof towards such payments by the contractors.

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