Pf Compliance - CiteHR
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Dear Koshish, In case your ur estt. is also covered under the EPF@MP ACT 1952, IT IS UR RESPONSIBILITY TO ENSURE THE COMPLIANCE IN RESPECT OF CONTRACTOR EMPLOYEE EVEN IF CONTRACTOR IS HAVING independent code number.
Now , u may ask for copies of Challan Forms showing deposits made in the Bank, as well as copies of 3A-6A in r/o emlpoyees posted with ur estt. .U may get confirmation from RPFC in r/o contractors compliance also.
hold the bills and security amount till confirmation .
with regards
RPFC (Retd.)

Dear Friend
Pl. ask the contractor to submit the copies of paid challans, monthly returns and paysheet alongwith the bill and at the end of the year to submit the annual returns copies. It is mandatory for the principal employer to ensure compliance of pf inrespect of the contractors and you can deduct and pay to pf authorities as per Section 8 of PF Act.
Rajendra Bhavsar

Dear Seniors,
I wish to thanks you for provided / contributed, many valueable expert advices. But, as a permanent solution to the problem, I will go for the termination of the contract and such workmen shall include in our direct employment rolls.
I serve notice to the sub-contractor and provide so time for any likely solution, if the company has solution to the problem they would like to save there contract, else the reimbrusement of PF refund shall be from sub-contractors bills on hold by the company.

Dear Koshi,
You have to make sure the following documens/compliance from your sub- contractor to feel confidence to you.
1. Ask Code draft letter (allotment of PF code number letter)
2. Copy of monthly PF challan for paid towards your no. of employee'
3. Copy of annual returns submitted to PF office (Form 6A) pertais to
the year of contract you have.
4. List of PF account nos on monthly basic.
5. Attendance registre.
From the above documents you will fullfill your all queries. Now a days all pf officees are upgrading the systems and hence the delay.
Satish Nandalaskar

Dear Koshi,

I understand that you have trusted the sub contractor for too long. As suggested by members the following steps will get you out of the mess you are into now

1. First check whether the sub contractor has a PF registration number. Ask for the original certificate and a photocopy, retain the photocopy for your records.

2. If the PF number is available you can check with the EPFO as to whether the sub contractor has remitted monthly contributions.

3. If he has a PF number then seek the PF number allotted to each employee deployed by the contractor at your premises.

4. Seek a copy of the PF remittance challan each month. Challan for the month of November should be submitted by him alongwith his December bill.

5. If the contractor is deploying personnel in several companies, ask him to furnish a detailed statement of the PF contributions in each establishment and the sum total of the contribution should have been remitted by him during the month. In short it is a reconciliation statement.

6. Seek the monthly returns submitted by him every month for verification and return.

7. Seek a copy of the Form 3A in respect of employees deputed at your premises alongwith 6A highlighting the names of persons deployed at your premises.

Please remember as the Principal employer you are duty bound to verify statutory payments by your contractors.

Trust these steps will retrive you from the problem.


Dear Kanan
Why R u not satisfied ith the comments of Dr. AK Chandhok ex Regional PF Commissioner an authority on the Subject.
Whether the replacement or termination of contract will solve your past problems? These r the ongoing problems of HR and will continue to crop up so long U R healthy. Take precautions and work from the agency. Best of luck!

Dear Kosh,
1. I think you should ask Form 3A & 6A along with annual return aknowledgement copy from PF.
2. Please take monthly PF challans from contractor w.e.f. Sept. 2007 onward.
3. No undertaking from will absolve you as principal employer if contractor fails to pay the pf contribution of his employee.
4. If contractor failed to pay PF contribution then as pricipal employer, you have to remitt the pf contribution and deduct it from his subsequent bills.
Avinash K.

[QUOTE=lkumar1956;1369247]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 Koshish,
Bare Acts of all applicable Act/Rules are available in market. Pl get a copy of Contract Labour (Regulation & Abolition) Act and read the provisions laid down in it and ensure its compliance.
Legally no employees should be engaged through a contractor if the nature of the job is permanent. However, in most of the organizations, house keeping activity is being carried out through contractual workers only but the Principal employer ensures compliance of all relevant rules/provisions under the CL(R&A) Act. Further, if the people working with the sub-contractor at your premises since 2007 are the same, even if you terminate the contract of the sub-contractor, you can not remove his people, meaning that you can only change the contractor.
You may take the help of your Legal counsel for his advice whether to take them on your rolls.
All the best

There is a recent judgement of Delhi High Court making the Principal Employer only responsible for remitting the contributions. Para 30 of the Schemes does not allow the contractors report and ensure compliance thro their own code No irrespective of the facts that the contractors are separately and independently covered.
It has also been provided in the Act that the Employer will first remit the contribution and than recover it from the wages of the Employees. Though it is not in vogue.
future course of action for you is to ensure the payment of wages in your presence and remit the ESI/EPF contributions in your code No only and deduct the same from the payable amount to the contractor.
The recent Judgement of the Delhi High Court is very crucial and turning point as far as compliance of EPF in respect of Contract Labour is concerned.

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