Contract Labour's ESI & EPF Provision Issue

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:confused: Dear Sirs,
I'm Working as HR in a Manufacturing company. We're using 3 type of contractors for various type of production oriented works. Each contractor supplying 15 numbers of manpowers daily. Now I'm in a doubt that who is the responsibility for their ESI, EPF?. Could you clear my doubts...
And also, 2. Could We structure the agreement with the condition that the contractor is the responsibility to their ESI, EPF ?
3. Should contractors registered their contract agreements in the Labour commissioner office ?
Thanks & Regards
Saravana Kumar.T
Network
Dear Saravana ,
your Question is Not Clear ...But still i am trying to clear you that .. Always get argeement with Registred contractor and Depositing of ESI AND PF is responsibility of Contractor.. and after depositing Challans they will reimbursement fro Employers. without and Service Charge on that amount..
Secondly..Its better if you ask them to make seprate challans of EPF AND ESIC. So that they dont do anything fake.
It is not required for contractor to registred it in Labout Office...
kpalkar
Dear Saravana Kumar.T,

1. If your Contractors are not having PF and ESI registration then your Conpany (as a principle employer) is responsibal for PF and ESI, But as a Principle employer your shall ask your contractors to take PF and ESIC Registration (If not having the same). As a Principal Employer your company is responsible.

2. Yes, You can structure Formal agreement with all contractors. In that agreeement your should mention that every month contractors have to submit monthly PF and ESI challans and other necessary PF and ESI documents.

3. No, You can not registered their contract agreements in the Labour commissioner office. It is only for your office use.

Regards,

Kedar
Soorya N B
Hi Saravana,
Contractors are responsible to pay ESI or PF..... Iam also working in a manf. company,here 3 conrtctors are supplying manpower of 300. End of every month u can ask proofs for ESI & PF submission.
malikjs
dear sarvana
mr kedar has explained you rightly.
being a principle employer you are responsible for deduction of their ESI/PF.so you should make sure that ESI/PF is deducted and deposited with authorities.
you can have agreement with contractor and that is not required to be registered with labour dept.
as you are hiring three contractor of 15 each ,so you are required to register yourslf with labour dept for hiring contract labour.
tks
j s malik
vinayakumar
If the Contractors engaged by you (Principal Employer) are not having PF and ESI registration then your Conpany (Principle Employer) is responsible for the Statutory Compliance like PF and ESI. You as a Principle employer shall demand the engaged contractors to take PF and ESIC Registration. Incase, if the Contractor does not have the same, as a Principal Employer your company can take up this responsiblity and the contribution amount towards ESI & PF can be deducted /adjusted in Contractor's Final Bill.
vikas_vks546
Dear Sarvana,
You are responsible for all statutary comliances as a principal employer.
You have also a Registration certificate i.e. provided by joint labour commissioner in which name of contractar and no. of manpwer are included.
Regards
Vikas
Prasad81
Dear Mr. Sarvana Kumar T.

You as a Principal employer need to obtain certificate of Registration from the Registering Officer under Contract Labour Act (Labour Comm Office).

In your case contractors are not required to obtain license since they are providing you 15 workmen each.

As explained by Mr. Kedar & Mr malikjs , it is the responsibility of principal employer to deposit ESI /PF if contractors are not registered with ESI/PF.

In this case I request Mr malikjs/other senior members to clarify me, what is the procedure for depositing the ESI/PF of the contractor's workers if contractors are not registered with ESI/PF. Shall the principal employer submit declaration forms of contractor's workers in ESI. What about the 6 monthly return which we need to submit to ESIC. Or what other records we need to maintain in this case? Depositing ESI/PF of contractor's workers will create any employee-employer relationship between principal employer and Contractor's workers?

Please clarify.

Prasad
winjoypray
Dear All,
what is the procedure for depositing the ESI/PF of the contractor's workers if contractors are not registered with ESI/PF. Shall the principal employer submit declaration forms of contractor's workers in ESI. What about the 6 monthly return which we need to submit to ESIC. Or what other records we need to maintain in this case? Depositing ESI/PF of contractor's workers will create any employee-employer relationship between principal employer and Contractor's workers?
Pls Clarify
Regds
Janu
sushumna_gade
Dear All,
Instead of taking contractual employees, the principal employee will appoint the contractual employees directly then what is the process for further.
If we are giving them appointment they will come under our company roles. (In the appointment we have to mention them about all structured components or not)
else we are not providing any appointment to them, we can pay PF & ESI through which organization(dummy).
Could you please clarify me.
Thanks
Dinesh
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