Dear Friend,
While engaging Security Sevices through a contractor or outsourcing agency, the employer has to make an agreement between the employer and the contractor. While entering to a contract the employer advised the contractor to produce the copies of Registration Certificates under the staturoty provisions of Contract Labour (R & A) Act - 1970, EPF Misc.Provisions Act - 1952, ESI Act - 1948 rules with in two weeks from the date of commencement of work. The contractor has also submit the copies of chalans under PF & ESI every month and maintain all statutory records and registers under the provsions of the said enactments.
If he fails to produce the above documents the principle employer is responsible to comply under the provisions of the acts and deductthe amounts of contribution under PF & ESI from his account and pay the balance amount to him. Don't engage such contractors and out sourcing agencies with out fulfilling the above norms.
In your second quiry the employer has unable to fulfil the payment of contribution under the provisions of PF & ESI Acts, he is liable to pay the conributions along with penal damages, interest and imposing penalties and prosecutions under the said acts.The amounts to be recoverd from the employer's movable and unmovable proporties and also ceise their bank account transactions by the department as a defaulter.
This is for your kind information.
Regards,
P.V.Rama Rao