Dear Team, We have engaged a major civil contractor. It is a private Ltd Company. He is engaging workmen around 200 daily. He is paying ESIC to everyone. But coming to PF he is telling that he is paying salary beyond 15000 per month. I have asked the contractor to pay the wage through the bank but he is telling me he cannot pay.
My view is - Can I ask the contractor to take form 11? Can I ask the contractor to give an appointment letter to his work showing his monthly wage as 15000
If the above two things as a principal employer can we protect the company from future complications.
Please provide inputs
From India, Hyderabad
My view is - Can I ask the contractor to take form 11? Can I ask the contractor to give an appointment letter to his work showing his monthly wage as 15000
If the above two things as a principal employer can we protect the company from future complications.
Please provide inputs
From India, Hyderabad
The contract agreement and the epf or statutory clause in the agreement must be clear.
If the rate quotation includes epf esic and other statutory costs and as principal employer if you are paying then you are supposed to have proof of remmittence of all such statutiry dues.
If the basic wage is set beyond 15 k then if labour is not registered epf contribution against such labour not to be paid by PE.
However if the employee having wages more than 15k and a member of the epf, then his epf contribution must be made by the contract and Hence PE is supposed to pay for such contribymution
From India, Vadodara
365If the rate quotation includes epf esic and other statutory costs and as principal employer if you are paying then you are supposed to have proof of remmittence of all such statutiry dues.
If the basic wage is set beyond 15 k then if labour is not registered epf contribution against such labour not to be paid by PE.
However if the employee having wages more than 15k and a member of the epf, then his epf contribution must be made by the contract and Hence PE is supposed to pay for such contribymution
From India, Vadodara
@Rahainakoti you can easily cross check the salary of employees with the ESIC Contribution record submitted by the contractor, annexed with the invoice submitted to you.
Hi Bijay Ji,
He was given a truky contractor. And mentioned in the contract that principal employee me tion to contractor that he need to comply with all statutory comploance like ESIC, PF,BONUS etc. But contractor is relectend to pay PF as he is stating that he is paying salary more than 5 k.
In future if any pf authoritors come for inspection that then contractor will jot be in the picture hence Prinicipal emplouer may be questioned because stating that we did not force contractor to pay PF.
How to can we justify the staturoty authorities at that time. Form 11 and Offer letter of worker will help us? If so how far?
From India, Hyderabad
He was given a truky contractor. And mentioned in the contract that principal employee me tion to contractor that he need to comply with all statutory comploance like ESIC, PF,BONUS etc. But contractor is relectend to pay PF as he is stating that he is paying salary more than 5 k.
In future if any pf authoritors come for inspection that then contractor will jot be in the picture hence Prinicipal emplouer may be questioned because stating that we did not force contractor to pay PF.
How to can we justify the staturoty authorities at that time. Form 11 and Offer letter of worker will help us? If so how far?
From India, Hyderabad
Hi Bijay Ji,
He was given a truky contract. Company mentioned in the contract that contractor need to comply with all statutory comploance like ESIC, PF,BONUS etc. But contractor is relectent to pay PF stating that he is paying salary more than 15 k to their workers.
In future if any pf authoritors come for inspection then contractor will no be in the picture hence Prinicipal employer may be questioned. Then they may ask that we did not force contractor to pay PF.
How to can we justify the staturoty authorities at that time. If we keep a copy of Form 11 and Offer letter of worker, will it help us? If so how far?
From India, Hyderabad
He was given a truky contract. Company mentioned in the contract that contractor need to comply with all statutory comploance like ESIC, PF,BONUS etc. But contractor is relectent to pay PF stating that he is paying salary more than 15 k to their workers.
In future if any pf authoritors come for inspection then contractor will no be in the picture hence Prinicipal employer may be questioned. Then they may ask that we did not force contractor to pay PF.
How to can we justify the staturoty authorities at that time. If we keep a copy of Form 11 and Offer letter of worker, will it help us? If so how far?
From India, Hyderabad
I hope this will not suffice the purpouse.
1.How can we cross check wether the worker is earlier PF member or not. We can his details only if his aadhar is linked to pf earlier else we wont get.
2. If worker is registered in PF earlier and aadhar is not linked we cannot trace worker epf number. Taking this as advantage contractor is telling that none of his workers have pf number earlier.
How to deal with this situation.
From India, Hyderabad
1.How can we cross check wether the worker is earlier PF member or not. We can his details only if his aadhar is linked to pf earlier else we wont get.
2. If worker is registered in PF earlier and aadhar is not linked we cannot trace worker epf number. Taking this as advantage contractor is telling that none of his workers have pf number earlier.
How to deal with this situation.
From India, Hyderabad
Statutory compliance is mandatory by the contractor if the PE is paying for the same.As ultimately it is the PE who will be summoned for this compliance.Your contract agreement also contain clauses towards fulfilment of compliances.
From India, Vadodara
From India, Vadodara
Social security laws does not work at the will of employee or contractor.or his declaration in any form.
It is the Principal employer who is supposed to comply and get it doen by the contractor if he is paying for the fulfilment of statutory compliances to contractor.
I suggest you check with your agreement clauses with contractor first and then act accordingly.
Employees are ultimately working for you at your premises and legally PE is to ensure all the statutory obligations.
From India, Vadodara
It is the Principal employer who is supposed to comply and get it doen by the contractor if he is paying for the fulfilment of statutory compliances to contractor.
I suggest you check with your agreement clauses with contractor first and then act accordingly.
Employees are ultimately working for you at your premises and legally PE is to ensure all the statutory obligations.
From India, Vadodara
Principal employer is liable for all statuary compliance under the employee welfare laws and schemes, if department finds that contractor has not made compliance, they will make the PE liable for the compliance outstanding
mere verbal speaking that contractor is telling this and that, does not get any appreciation in the administrator office,
follow your form form 5 (CLRA) and the form 7(CLRA) submitted by contractor, and periodical form XXII to XXV (CLRA), all details and breakouts are specifically given breakup of each employee in their forms.
mere verbal speaking that contractor is telling this and that, does not get any appreciation in the administrator office,
follow your form form 5 (CLRA) and the form 7(CLRA) submitted by contractor, and periodical form XXII to XXV (CLRA), all details and breakouts are specifically given breakup of each employee in their forms.
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Exemption under Sec.17(1)(a) of PF Act 18.11.2011.pdf