UrgentAdvice: Compulsion Of EPF For Firm With Less Than 20 Employees - CiteHR
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Dear All,
I am a Civil Contractor based in Pune.
I have been working with a reputed Construction Company of Mumbai for past one year.
Recently the Principal Employer has made it mandatory for all the Contractors to get registered under EPF act.
However my proprietary firm employes less than 20 employees directly or indirectly. On any given day the no of workmen of the site are less than 20 including the supervisory staff. We fail to understand that when the law does not compel us to register under EPF act, can the Principal Employer compel us to do so???
Please advice.

Dear Avinashphase, If the principal employer has registered with EPF, you also have to register. The number of employee working with you is immaterial. Abbas.P.S
There are two different rules that apply in your case
The general rule is that PF applies to all business with 20 or more employee
However the concept has then been extended to factories instead of just business. So for a factory if there are more that 20 persons working, all of them are required to be covered under PF irrespective of who they work for.
Therefore the PE is definitely entitled to insist on all contractors being PF registered

Your employees are working for Principal Employer. When his establishment/organisation is covered under EPF act, you should also get registered /covered under EPF act Regards, Ganesh.H.N
It's not Principal. Yes, principle employer can do so. Rule does not stop you from providing social security benefits to your employees, whether 20 or less. Principle employer is equally responsible for contractual employees working under his premises same like his permanent employees.
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