Umakanthan53
Labour Law & Hr Consultant
KK!HR
Management Consultancy

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Hello Sir/Mam, I want to start my work for 2-3 months with 5-6 employees, my factory employees strength is at present 1 employee. How can I work with Contract Labour? Will PF ESIC be mandatory in this case?
From India, Delhi
In case you are already covered under the PF & ESI Acts, then you will continue to be liable for due compliance of them. As you are proposing to engage contract labour to carry out the work, in case of prior coverage, you will have to ensure that the contractor complies with the requirements, otherwise you will have to pay. In case you were not having coverage in both the Acts, then you don't have to bother about them.
From India, Mumbai
Dear Vishal,
You have a factory with a single employee only. Now you want to engage the services of 5 to 6 employees for a work that would last for 2 to 3 months. Therefore you want them on contract basis for 2-3 months only and it is not necessary that they should be engaged through a contractor for it would be more expensive. You can employ such people directly on Fixed Term Contract basis for a maximum of 3 months only. Since the total no of employees in your factory falls below 10, you are out of the coverage of ESI and EPF Acts.

From India, Salem
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