Greetings to All. Seek you valuable guidance for the following.
We are a manufacturing company entered agreement with 2 van contractors for Pickup and drop facility for our company employees.
1.The owner of the 2 vehicles are same .
2. one vehicle the owner is driving and the second vehicle he a appointed a driver.
3. We are paying daily rent for the van and charges per kilometer on actual usage.
We seek your clarification for the above two driver we have to cover PF and ESI as a Principal employer.
Ganapathy V

From India
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.
From India, Kannur

Dear Mr.Madhu Sir, Thanks for your valuable guidance. Regards, Ganapathy V
From India

There is no contract agreement of services.
The Vehicles are being used and payments one for the travel use. Rental.
So No epf Esic etc.
How ever to be on safer side suggest employees travelling by such vehicles must be covered and insured properly.

From India, Vadodara

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