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We have a sub-contractor and he employees less than 20 contract labours and works only for 7-8 days in a month.
1. Is ESI and PF applicable to him?
2. Can he only get registration under Workman Compensation act.

From India, Delhi
Hi Friends,
This is a Good Question. Even i am not clear of this because it is being mentioned as less than 20 people. But i think the number of days doesn't matter in this sort of case.
So members clarify our doubt on this .................. :?
Amith R.

From India, Bangalore
Dear friend, If you are covered then the employees of sub-contractor will also be covered in both Acts-ESI and PF. There is no need of Workmen compensation policy. with best wishes Lalit Kumar Gupta
From India, Lucknow
Hi Lalith,
I agree with your point, but need to get clarification on the employee strength which is less than 20 in this case. As the contractor as to get it registered and provide this benefits to the employees what can he do does he need to get it registerted first or how can he go with this.
Can you clarify on this..............
Amith R.

From India, Bangalore
Thanks for your reply. But my query is that the subcontractor employees daily wagers on contract and they are less than 20 in number. How to get these daily wagers registered under PE act ESI act
From India, Delhi
There are five main issues - - concept of principal employer, core and perennial work, industry restrictions, timing and location restriction, compliance philosophy and decentralisation and high mandatory payroll deductions - - that need immediate attention.
Due to these issues, there is blurred accountability with dual employer responsibility.
Here I would like to clear that Law does not recognise Sub-Contractor Only Principal Employer & Contractor are responsible for statutory compliances.
If the numbers of employees are more than required as per PF & ESI Act you will have to comply it. If contractor does not then Principal Employer is liable to comply.
N N Tiwari

From India, New Delhi
In case we have 5 subcontractors and are working on 5 different sites and each of these subcontractor employees 6 labours, will we need to take registration under PF and ESI act as the number of contract staff are more than 20 or it is not required.
From India, Delhi
When the employee strength is less than 20, then it's not mandatory for the sub-contractor to pay in for PF & ESI. But if the number is floating, then at any time it exceeds 20, it comes under the coverage and if the same employees earlier employed then they've to be extended the benefit retrospectively.
It's the employer who must enforce the EPF & MP Act, 1952 because sub-cotractor will come and go but EPF dept. enforces on organisation not on sub-contractor.

One has to check that Esi is applicable on that site if it is applicable then it is compulsary to comply and if strength is over 10 or 20 by taking a sub code for that site, but for P.F. if principal employer unit is covered one has to make compliance of P.F. by making a registration for P.F. from the P.F. office where the contractor head office is or from where he oprates, if number is below 20 than the compliance is to be made on principal employer code No., in any of these cases principal employer is responsible for each, every empoyee working under their name wheather it is contract labour or employe or not.

From India, Delhi
Number of contract workmen employed by your sub- contractor does not mater to cove them under EPPF and ESIC Acts.
If number exceeds 20, the contractor has to obtain Labour lisence to run his bussiness.
EPF and ESIC is applicable even if he has ony engaged one person under him.
If the Sub - contractor has no EPF & ESIC regsitration numbers, teh contributions could be remited in any otehr servcie providers name.
F.ex. if you have engaged a contrcator to caryy out House keeping, who has a registration under these EPF & ESIC, then those seven members contribution could be remmited through house keepping contractor.
Prashanth shetty

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