Pf Compliance - CiteHR
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I am a very junior, but this is my opinion to this situation and the precautions to avoid such a situations. Please listen to the more experienced views.
It is the principal employers responsibility to ensure whether the contractor complied the statutory. If not pro actively took necessary actions to comply under their scope.
Find out where they failed to fullfill, better you do it in your scope. You can stop the payments untill the issue is solved.
But getting an undertaking or bond will not let you be above said responsibility.
In future make sure their bill process with the following checklist,
1, Attendance sheet
2, Wage sheet
3, ESIC challans
4, PF Challan
5, ESIC Half yearly return shall be filled late r on
6, Monthly return of PF
7, List of employees with ESI and PF Numbers.
8, An undertaking stating they have paid the full salry for the particular period , and the esic pf payments have been done.
Thank you
Sivan A

The total contribution to PF (both employee & employer) will be only 24%. Then how the PF will be more than the bill payment? Abbas.P.S
Dear All,
They will provide 6a and 3a and other formalities as infromed to me by the Gentlemens.
After that what, the employee still come after regsin to this sub-contractor and legally he complaint to the authorities that the employee has worked with you (as principal employer responsibility).
How to handle this situation...

PF office generally do not issue annual accounts slips(Form 23) on time. It is delayed by 2-3 years. If you do not follow the PF office then you may not get annual accounts slips.
If you want to verify whether the contractor is deposting the PF contribution or not you can check the combined PF challans which is submitted (to the bank) in triplicate while depositing the PF contributions in the bank.
If the contractor has photocopies of those callans then no need to worry. Just ask him to follow te PF office to get annual accounts slips.
Kamal Prasoon Sinha

Dear Koshish,
yes u can for ur records, but as per the rule it is priciple employer resposibility.. so its better go through the professional contractor.. or as i said deduct the PF amount and remit through ur PF code..
Its very simple u have hired the contractor on behalf of ur be in ur safer side.

Dear Koshish,
I would like to suggest you just collect pf challan on monthly basis with acknowledgement of SBI and as well as copy of form 3A as well as form 6A for particular employees, who are working in your organisation on behalf of contractor...
Check the records on monthly basis for contractual employees or as per your convinience you can check out the records
Thanks & Regards
Sunil Sharma
Sr. Executive HR

Dear Friend
Please ensure getting copies of F-12A and paid challans before making him the payment of his bills. Alternatively You may retain 15-20% of his bills pending finalization of PF Accounts.
This is the duty of every employer to display the copies of Paid Challans on the Notice Board alongwith the name and address of the PF Inspector.
Alternatively U may contact the concerned PF Office with reference to his Code No to ascertain the proper PF Compliance.
In terms of Contract Labor (R&A) Act 1970 U R supposed to witness the payment disbursement where the deduction of PF is shown alongwith the PF Number.

Dear Koshish,

There is provision in PF Scheme, 1952 to penalise deafulting contractors, which states that,

Whenever an employer fails to remit the dues under EPF/EPS/EDLI Schemes or any Inspection charges within 20 days of the close of the month the damages on late payments are as under :

Less than 2 months


2 to 4 months


4 to 6 months


For one year


The PF Commissioner is having power to raise damages up to 100% of the arrears.

vAvoiding any payment or submitting false statements

1year imprisonment OR fine Rs.5000/- OR both

vDefaulting in payment of contributions or Inspection charges

3 years imprisonment

vDefaulting in compliance

1 year imprisonment OR fine Rs.1000/- OR both.

You can act accordingly, If contractor fails to submit PF of workmen, legal notice can be sent by PF authorities.

As a principal employer you are supposed to comply with PF obligations for workmen working at your location and deduct the amount from contractor's bills.

Better you obtain PF account numbers of workmen from your contarctor and comply by the requirement.

2. If you terminates the contract and employs the workmen to execute job, such workmen shall be in your direct employment. if you can afford this direct employment, you may proceed.

Dear All
Principle employer is responsible for non compliance of statutory provisions of his subcontractor. He should ensure compliance of statutory provisions periodically and accordingly remit the payment to his subcontractor if every thing is in order.. He should insist attachment of documentary evidence for remittance of statutory payment with their bills before making payment to them.
Distribution of pf slips by department is delayed always which is normal.

Dear Mr. Koshish
Plsease be ensure that PF contributions of employees ( both employees and employers shares )have been deposited to respective PF account through designated bank.
If the contribution is deposited regularly to PF a/c the the deptt will have no problem to issue pf slip ( form - 23 ) .
Pls collect bank challans from the sub contractjor and verify , for the deposit

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