Many a times, contractors do in-house work based on Work Orders/Job Orders wherein they have to complete a given assignment as per negotiated rates. Since they bring their employees inside company premises, the company is liable to pay their ESIC (either through their own ESIC code or the contractor pays through his ESIC code, if he has one).
But my question is how will be the ESIC laibility be calculated:
1) Will it be calculated on monthly salary of the employees & what if they have been hired only for that assignment & paid for a few days only OR
2) Will it be calculated as percentage of the bill amount.
3) Is there any provision in the ESIC Act or any court ruling to calculate contributions in such cases.
The above question is important since principal employer can easily calculate the ESIC liability in cases of manpower contractors depending upon the salary paid to them but there is confusion for contractors working on job/assignment basis.
Thanks in advance for your responses
16th April 2013 From India, Aurangabad
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