Esi & Pf Consultant
Taxation And Hr
Dgm-hr , Rajhans Group.
Exe. Personnel (legal Compliances)
Data Entry Operator
+8 Others

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Hai Sir,
Our company is having a guest house, which is maintained by a contractor. The total number of manpower employed in the guest house is only 5. The contractor do not have any Registrations ( ESI,PF etc)
How to get registered under contract labour act and PF act by a contractor who is having a manpower of only 5 labours ? . What are the procedures he has to follow for getting the above registration certificates ?
Can any one please help me to find a solution for these issues ?.

From China, Taoyuan
pls clarify
Does the contractor can apply for any voluntary registration if the number of workmen is below 20 ?.
What the contractor has to do for getting PF account if the number of workmen is below 20 ?.

From China, Taoyuan
No the contractor can not apply for voluntary registration for contact labor act because that is not coming under preview of 20 employees contract labor applies only after getting 20 employees but could be registered under shops & establishment, if that comes under jurisdiction of the same.
From United States, Chicago
For registering the contractor under CLRA Act, No of contract worker should be 20 or more on any day of the preceding 12 months.
In your case you can n't register the contractor under CLRA Act.Since the No of contract workmen is less than 20.
Similarly, PF Act also, is not applicable.
Once contract manpower reaches 20, you can apply for Registeration.
D Pannerselvam

From India, Mumbai
Sir pls clarify what is the deference between workman compensation act and employee state insurance act
From India, Hyderabad
Workmen compensation act -Compensation for injury by accident
ESI Act-Benefits to employee incase of Sickness,Maternity, and Employment injury
Certain areas ESI will declare non- notify areas. These areas ESI Act wil not become applicable.If your factory falls on "ESI Non-notify area", ESI Act will not applicable.
In the absence of ESI Act, Workmen(Now Tremed as "Employee") Compensation Act will become Applicable.
Both Acts can n't apply simultaneously in factory.
ESI Ceiling limit is Rs.15,OOO/- .
In ESI covered areas,
IF employee drawn on his monthly salary is below Rs 15000/-,which will automatically covered under ESI Act.
If he draws more than Rs.15000/-that he will not cover under ESI.
D Pannerselvam

From India, Mumbai
1. if employer is covered under epf & mp act / esic act, then contractor can comply on employer's code number.It is purely principal employer's responsibility to ensure compliance under emp and esic act of all workers either direct or contract.
2. contractor is not required to take license under contract labour act. until he has less than 20 worker.
Sanjeev Sharma

From India, Chandigarh
I would like to clarify herein.

Contract act not applicable to contractor since he is having only 5 employees. if any work assigned to Contractor and for the purpose of execuation of such work if contractor involves less than 20 employees, in that case that contractor does not need to obtain contract license for such particular contract work.

Please note contractors registration / license is applicable for each and every contract work and it is not a Permanent license / registration. As per law each and every contract requires separate registration. It is a Registration of Contract and not registration of Contractor. [In normal language we called Registered Contractor but actual fact is this)

But EPF, ESI act is applicable to him even though he is having one employee. How much employees he is having

is not our Principles preview. That contractor might have another clients and giving services to others.

When Principle assignes any work on contract basis and the contract would be executed in Principles Premises, in

that case all the rules and regulations i.e. ESI. EPF, Minimum wages etc. applies to Principle, same are applicable

for those contract employees. Principle has to ensure whether Contractor observing these tings or not. if contractor

himself having less than 20 employees, in that case he has to comply for ESI and EPF under the Principle's Code No.

Another thing is if Contractor is having his own registrations under ESI & EPF act he can make compliance under his

code No. Principle has to obtained necessary documents related to registration and compliance from such contractor time to time.


Pramod Thakar Pune

From India, Pune
Well said Pramod..
in this thread, reply of Pramod is covered all points. BAILSDCP follow this one..
You are liable, as a principal Employer, to deduct PF and ESIC from contractors payment and comply in your Chalan. You have total more than 20 employee than your Contractor is covered in PF and ESI irrespective of their strength of Employees.
Just ask your contractor give you wage register monthly and calculate PF Esi. No need to register with Contract Labour authority, but yes check whether he has any other operation than you have assigned?
Hope this will clear.
Dilip Bhandari
HR Manager

From India, Surat
Dear Sir,
If the Contractor supplies, only manpower to every industry, he might have taken the ESI and PF code for his firm. You should ensure before giving contract to him.
If you want now to extend ESI & PF to them, you can do so by deducting from their bill and paying in Employer Code. Nothing wrong . Both are welfare legislations
valid in Law.
LL,HR&IR Consultant

From India, Hyderabad

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