Industrial Relations And Labour Laws
Freelancer In Hr &indirect Taxes For
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This is a contract FOR service and not a contract OF Service. The van owner is charging not for the labour but he is charging for the kilometer run. The employer does not fill diesel nor does any repair work but it is taken care by the owner of the vehicle only. It is as if the employees are traveling by a public transport where there exists no master servant relationship. As such no ESI or PF will be applicable t the driver of the cabs. Similar is the issue if the driver does not get salary from the owner of the cabs. He cannot ask it from you because you pay for the travel undertaken and it is not that you have taken the vehicles on lease and have appointed or taken the services of the driver and you fill the fuel, take care the repairs and maintenance and run it for your operations, pay a rent to the cab owners, wages to the drivers.