Industrial Relations And Labour Laws
Kritarth Consulting
Posh Programs; Hr Management Consultants

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I need to employee 18 workers in my company. Can I arrange two contractors with 9 workers each to save the PF registration and deposit.
From India, Jalandhar
PF is applicable to an establishment in which 20 or more are employed. When you have only 18 employees, why do you engage two contractors each deploying 9 workers? And if you mean to say that none are your employees but are workers of the two contractors, you are mistaken. For coverage of the establishment (under any labour Act) the total workers INCLUDING those engaged through contractor(s) will be taken in to account. So, at the end of the day the workers of the contractors will come under you only.
From India, Kannur
Not Only What Madhu Sir clarified, Re Total Nos of Workers/Employed Person present in any Workplace Premises,
Engaging Contract Labour on or for "Permanent and Perennial Nature of Job/Work" of any Establishment shall be deemed Unlawwful, a sham and subterfuge and the Persons so employed shall be deemed as Permanent on Roll of the Pricipal Employer.
Why an Urge to avoid deducting PF & the Employer contributing a Matching Amount to PF Fund thereby Brazenly Breaching the Laws of the Land ?? Lets desist from such Venturesome Thought and Contribute to Building a Strong Workfoce in a Supporting Indian Society. The Idea of CSR was mooted in that direction.
Kritarth Ream,
22 Feb 2019
Kritarth Team

From India, Delhi
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