ESIC and PF Inspection: Do I Hold Liability for Job Work Contractors?

I have an ESIC and PF inspection. Can anybody tell me if I hold ESIC and PF liability for our job work contractors.

Dear,

I want to suggest that you should stop all payments to the contractor immediately if there is any balance. There are certain provisions and systems in HR management. By applying them, you can definitely prevent such problems.

You are fully responsible for all statutory compliances towards labor laws, including EPF and ESI. When choosing a contractor, always check their credentials carefully. Also, consider taking the services of professional consultants in the field of HR and corporate management when appointing contractors or employees.

With regards,
Pawan Tripathi
CEO
Pawan's Consultancy Services
B-16, Sector-25, Rohini,
Delhi - 85,
Ph: 011-32042727, 9810562247

Contract Labour Act Compliance

Under the Contract Labour Act, if a contractor fails to comply with labor laws, the principal employer is equally responsible for the violation of the law. Therefore, please stop all payments to the contractor and ensure that they do not withhold the salary of employees.

Documents to Request from Contractors

Ask the contractors for ESI returns, PF returns, documents under the Bonus Act, and the Labour Welfare Fund return because many contractors do not adhere to these regulations properly and take them lightly.

Gratuity Act Eligibility

Also, check if any employee has completed 4 years, 8 months, and 22 days of work for your organization under the third payroll. If so, they will be eligible for the Gratuity Act as well.

Regards,
Sumit