Srinath Sai Ram
Hr Manager
Nrvyas
Hr Consultant
+1 Other

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One company has 127 employees on roll and company is covered under EPF act.
This company has hired a contractor for -5-6 labour ( sweeper and labour for garden).
There is no need to have Labour Licence under The CL(R&A) Act by contractor.
Contractor has no PF no.
My query is , whether, contractor has to get his own PF number? "Y/N", Appreciate your reply, supported by section no of the act.

From India, Visnagar
The Contractor can opt for "Voluntary Coverage of his Establishment "since his present Employee strength is less than Compulsory coverage.Thereafter, Contractor can cover his Employees.
Alternatively Principal Employer can cover Contract Employees under his PF Code, since the Independent Contractor does not have separate EPF Code

From India, New Delhi
Even if the contractor has no PF code, the Principal employer is liable to pay the contribution on his code under PF Scheme 1952 since the contract workers come within the definition of employee u/sec.2(f) of the PF Act.
B.Saikumar
HR & Labour relations Advisor
Navi Mumbai

From India, Mumbai
Dear Mr. Nrvyas,
Greetings .....
First of all, nature of jobs the Labours are engaged are very much of Perennial nature and the Company is not supposed to engage contract workers for such work. It is contrary to law and would be treated as a punishable crime. Also, if the workers at the end of their Contract Period claims Permanency in the company, a legal forum would definitely award in their favour.
With aforesaid legality as the premises, it would be suicidal for the Company to cover the workers under their PF code as that would be further confirmatory for them to claim permanency of respective services.
It is therefore suggested that the Company Authority must talk and convince the Contractor for opting for "Voluntary Coverage of his Establishment” under PF. In fact, that is the only way out given the situation.
Wishes .....

From India, Pune
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