Dear Seniors.Please help me this regards:
1.Suppose a company having 45 employee on contract basis and contractor paying all of them less then minimum wage,like 3500/- per month, and principal employer also happy with this but now they wants all employee on roll base with same salary/amount. Now principle employer want esic coverage for all of them for their safty again on same 3500/- and currently they are registered under factory act and paying PF/ESIC for executive level only.Note:they wants to pay 3500/- salary with less attendance like 3500/-rs for 18 days only.please suggest any other idea for safety of all?

From India, Jaipur
Harsh Kumar Mehta

Consultant in Labour Laws/HR
1. Sir, I think, paying of contributions under ESI Act, 1948 on the basis of any manipulated records of attendance and wages is not a major problem under said Act. But the same can be an objection under either Minimum Wages Act or under the Payment of Wages Act. Therefore, it will be more better if you may contact and seek guidance from the appropriate Officer of Labour Department of your area who is authorised under above Wages Acts.
2. If principal employer and his contractor want to cover their workers under ESI Act or under EPF, then , in my opinion, it is a good step.

From India, Noida
So far so good, as long as any employee does not care to enforce his / her rights. Refraining from staking one's claim is not illegal on the part of employees. Once everything is officially detected, both the contractor / principal employer can manage to lightly let them off by paying paltry amount as fine!!
From India, Ernakulam

Partner - Risk Management
I do not think any of us would like to help you with such manipulative behaviour.
It's a criminal offence not just labour non compliance.
I hope the authorities come down on you like a ton of bricks and recovery back pay for last 5 years

From India, Mumbai
Soumitra Sengupta

Dear Mr. Harikumawat,
Greetings ........
This is a common technique adopted by some of the Principal Employer. They adjust on days present to bring down net payable amount to Workmen to save on PF, ESI etc.. In the given case it seems wage is fixed to match Minimum Wages (in Books) but attendance is adjusted to bring down Net Payable to Workmen to Rs.3500/- PM. It apparently looks "ok" till discovered by "Appropriate Authority". The punishment in such cases is severe as the Authority first "SEAL" all Bank Accounts of the Principal Employer and thereafter calculate amount (for full attendance) payable with imposition of Fines and Damages
It is better to avoid such situation. You may kindly refer the PF case of M/s B.L. Kashyap & Sons (BLKS) Ltd. (CBI in its) and consult your employer.

From India, Pune

Educator, Management Consultant & Trainer under Navtarang HR Services, a famous Consulting Agency.
Dear all,

It is similar to a situation, employer is knowingly committing a crime with full knowledge of punishment. Moreover, penalty , labour problems etc are bound to come , making things unmanageable . If you are HR or advisor to employer, are you not party honestly in creation of black money. See, one willful mistake will lead and link many others in the circumstances,do not dream that it shall always remain uncovered. If group of employees together stand up with this problem and they all say that instead of 30 or 26 days working days, employer in conspiracy with HR fabricating in documents showing only 15-18 days, then you can not stop them . Workers will be giving full evidence of attendance, production records ,produced , recorded by them , generated by management . Its past time which has passed so far and feel happy. Today, be ready to upload all attendance and bank statements of payments given wrt all employees. Please share these to your employers boldly and suggest a legal , a real futuristic plan that can erase out bad name if any from the minds of employees also, as your employees shall always be well wishers of company .Regards,

From India, Delhi
[email protected]

Finance Manager
This is legally not correct, it will come to notice to the department that how come a employee work for 15- 18 days a month on regular basis and it is not for 1 or 2 employees but for more than 40 employees I believe. Hence it is not advisable to do such act wherein you and your employer has to suffer at a later stage.
From India, Ahmadabad
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