Dear Sir, We have started a new business in June 12 and have approx 85 labours, out of which 20 are regular for production and remaining are for cleaning and maintenance. All the labour are thru contractor. The factory is in surat. The labour is not interested to have any deduction of account of PF and ESI and they want Rs 300 as take-home daily wages. So far the contractor has just paid the wages to the labours and charged to us with his commission. There is no compliance so far. More so being a small contractor he is not aware of what all compliance he has to make.

I being the production in charge is much worried. The management has even approved to pay the cost of compliance to the contractor but we both (contractor and myself ) are not aware how to work out the total compliance cost i.e. PF, ESI, paid leave etc. Apart from PF and ESI, there are many other compliances to be made, wounder how to convert these into amount.

Request seniors to please mail me calculation considering 2 workers who are being paid daily wages of Rs. 300/-. Please suggest the agreement format we should have with the contractor.

From India, Malappuram

Dear SK
The contract worker is not interested to deduct any amount towards PF etc is not only your problem. We faced same problem in past but we find some way and its working smoothly.
You may give me contact no , name and e-mail Id of your Authorized person of Surat unit.

From India, Anand
I have no any Organisation, But I want to get a contract less than 20 labour, And i get a new PF number for labour, and ESIC Number so needed.. so PF Office Provide me A Pf number.? And ESIC Number,,,Other wise A need Organisation I what to do For this ... please get me a procedure for this..
I am Leave in vadodara (Gujrat)

From India, Vadodara

Dear Mr.Sanjay,
Refer to your query to the above topic, compliance under the statutory provisions is mandatory to provide PF, ESI is the responsibility of Immediate employer(Contractor).Please make an agreement with contractor with terms and conditions clearly. other wise the contract labour tol be deemed as the employees of Priniciple employer and the responsibility goes with you.
You can do one thing.Please send your mail ID & Contanct my mail to enable me to sent a copy of agreement made to the contract labour engaged by a contractor.
For Further clarifications, pl feel free to contact me on 9248002899.
Thanks & Regards
P.V.Rama Rao.

From India, Chennai

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