From India, Thrissur

This is not necessary as the agency threatening the employee will do actually what it says. You need to get in with the higher management of the agency and discussed on the issue. If you found that, there is any chances where the agency will not pay dues to security guard then you can always hold back there payment. It is allowed to be paid directly to the contract employee if contractor is not paying or ready to pay and it is legally allowed. Also, even principle employer can submit their PF dues as a contract employees.