Do Service Providers Come Under Factories Act And Go For PF. - CiteHR
Hr Professional
Kiran Arora
Self Employed
Hr Professional

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Do the service provisers like repairers in the field of automation/industrial electronics come under factories act. should one such firm get the registration for PF and ESI if its a properiotership firm working since last 2.5 yrs and having 8-10 employees.In case such firm manages AMC annual maintenance contract of some PSU They demand PF/ESI registration NO.s . what should be done in such case ?
Dear Kiran Arora,
As for as the basic data included in your query the Factory Act, PF & ESI Act, prime facia, are not applicable to this service provider.
But they are actually providing services to such PSU who are coverend under aforesaid acts. that is why PSU is asking for Its PF & ESI Registration.
Since Services under AMC are not covered under E.P.F. and ES.I. therefore the said PSU, in my view should not have any problem as far as the compliace are concerened under E.S.I. & E.P.F. Act.
The service provieder must be having a CONTRACT FOR SERVICE with the PSU's (NOT CONTRACT OF SERVICE) both terms have meaningful difference as per the Apex Court pronouncements on the same subject.
(Check it in your aggrement with PSU)
The Factories Act can not be applicable on 8 employees.
I hope it will clarify your doubts other wise you can write to me on my Email ID -
Arif Khan
Asstt. Manager (HR)

Any advice you get in this forum is good but plese hire a good labour law consultant - as this is just a discussion forum.
I am agreed with Mr. Arif Khan.
Person who comes in the Factory for any work (especially E & M work on regular basis) must be covered under any medical service.
I have a doubt on PF part.
Yash Pal
Asst Manager-Administration

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