Gannahope
Deputy Commissioner Of Labour..a.p.
+2 Others

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Sir
We are registered under factory act , having PF, ESIC Registration, have 4 labour supplier contractors at Palghar food processing factory , we paying salary as per Minimum Wages act, deducting PF ESIC, MWLB, PT etc as per prescribe guide line under applicable law.
Recently we appoint New CA, he advice us why you paying such a good amount under PF, ESIC, MWLB, etc, better you can appoint each person as a individual contractor to save good amount
It's possible ? can we appoint each un-skilled worker, skilled worker as a contractor ? if yes How? what is impect under PF, ESIC GST, IT law ?
Regards

Wrong.
Foolish advise.
Making mockery of labour laws.
How workers can become each contractor
Ten workers .become
Ten contractors.? Pls
Don't believe such halfknowledge data.
Follow normal procedure.
Save labour rights dont invite trouble s.

Hi Friend, Your CA has given you wrong idea to implement. Appointing as a each contractor also attract PF & ESIC. Behalf of contractor Principal employer need to pay the contribution.
Do not fall for such incorrect advise
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