Kritarth Consulting
Posh Programs; Hr Management Consultants

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We are having a contractor who has deployed 11 employees in our office as per a contract

In the month of Feb which was the last month as per the contract, 2 employees left the job after working for 6-7 days. For remaining period he has not deployed any permanent staff and he has completed the remaining work by deploying 3 other employees. These three employees worked for 14, 12 and 14 days respectively in place of 2 engineers who left. The contractor has not submitted ESIC for any of these 3 employees... on enquiring, he is saying that since it was last month of contract, he has not deployed any permanent staff and has completed work with his own company’s employees. He is saying that since these three employees are having wages more than 21000, they are exempted from ESIC.

My question is shall I consider this argument of contractor that these employees are exempted from ESIC because as per our contract, we are paying wages which is less than 21000 and require ESI to be deposited.

From India, New Delhi
Dear Nikhil Please carefully read the Provisions of Contract Labour (Regulation & Abolition) Act and you shall get your Answer. Further, remember the Fact that in the event your Contractor does not Comply with Legal Provisions, you/the Principal Employer shall be Liable to compensate for any Misrepresentation, Non Compliance, Violation of Provisions etc. Aslso,once any Contractor is covered by anyAct/ Liability, the liability does not Cease/End as & when the NO of CL decreases in course of the one & the same Contractual Period
Kritarth Team,
16.7.2020

From India, Delhi
Dear kritarth Consulting, can you please elaborate what should be my stand in the present situation as i am not able to understand what to do.
From India, New Delhi
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