Nagarkar Vinayak L
Srinath Sai Ram
Hr Manager
+1 Other

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We are manufacturing unit in Maharashtra, employs 50 employees. Now, we have to hire a contractor with max. strength of 15 to 20 workers. But, as per amendment, there is no need for labour licence upto 50 worker, then is it mandatory to register that contractor for PF and ESIC? If no, then, how we can provide benefit of PF and ESIC to our contractual worker?
Please, guide me.
Manish Shrivastava
HR Executive
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Your query contains your answer. As your organisation will deploy contract employee who will be working for your organisation, hence, it automatically gets eligible under PF and ESIC. There is no alternative wherein your organisation can avoid that statutory norms.
Girish Vivalkar
Indian Labour Law and Human Resource
Dear colleague,
You are probably mixing applicability of Contract Labour Act with PF and ESI. The criteria of applicability for all the three Acts is no.of workers which are different for each.
The Contract Lab Act may be applicable or not but PF and ESI will be applicable to the contractor if your establishment is covered under it.
Vinayak Nagarkar
Dear Mr Manish,This is in addition to reply of Mr Vinayak.If you engage Contractors not having PF & ESI Code Number, Contract Employees have to be overed under Principal Employer Code Number.Consequently, engage Contractors already having PF & ESI Code Number
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