Dear HR Professionals and seniors,
Please Urgently Clarify Following Things
We Took Civil Contract Work (Boundary Wall Construction And Chain Link Fencing) From One Company. And Also We Have Licence Under The Contract Labour (Regulation And Abolition) Act, 1970.
Our Employees Strength 15 Nos. At Present.
In Future it May Increase / Decrease.
This Project Work Duration Is Hardly 6 Months
Should We Deduct Pf And Esi To that Contract Labour Under The Contract Labour (Regulation And Abolition) Act, 1970 And The Contract Labour (Regulation And Abolition) Central Rules, 1971.
Thanks with Regards
Our civil project work is only 6 months, once project will be completed, all employee's service will come to end automatically after completion of project, In this case, is the PF and ESI rule applicable to us(contractor) strictly.
We received contract licence for 50 workmen
Thanks with Regards
An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith
Be enacted by Parliament in the Twenty-first Year of the Republic of India as follows :
1. Short title, extent, commencement and application.-(1) This Act may be called the Contract Labour (Regulation and Abolition) Act, 1970.
(2) It extends to the whole of India.
(3) It shall come into force' on such date- as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. -
(4) It applies-
(a) to every establishment in which twenty or more workmen, art employed or were
employed on any day of the preceding twelve months as contract labour ;
(b) to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen :
it does not matter that they cease to work on certain day after the contract finish,
if the contractor opt to surrender the EPF /ESIC/Contract labour licence after finish of work, they can do it at their will, with supporting documents, but in no case they can deny the labour welfare acts / rules applicable.
I would also like to clarify that construction of compound wall may be treated as work incidental to the work of the factory depending upon the situation. There has been different views with regard to its treatment. But to be of safer side, the Principal employers use to pay the contract money after deducting the ESI/PF. For the contractor also, it is advisable to do so because the work involves risk and ESI is nothing but a good scheme of insurance and medical attention.
Ascertaining the applicability of BoCW @ own risk. The act is not applicable in case if the constriction within the ambit of existing Factory expansion.
VEDA LEGAL RESOURCES (P) Ltd | Legal & Compliance Services
Numerical strength of the workmen/employees actually employed is one of the determinants for the applicability of all the three enactments viz., the ESI Act, the EPF Act and the CLRA Act to any establishment. However, by virtue of the difference in the the threshold strength plus the duration of employment, the application of the Acts can be concurrent or consecutive. For all practical purposes, a contractor's establishment also an establishment under the ESI and EPF Acts. Therefore, I concur with Mr.Madhu. Even in the case of your being an unlicensed contractor in respect of a particular Principal Employer because of both the number and duration parameters, what is the guarantee that you will not rotate some of your contract labour among other PEs?