Are Canteen Workers Outside the Factory Covered by PF and ESI? Let's Discuss!

I shared my CiteHR experience with one of my friends. He has given us a situation to find a solution: His factory engaged a canteen contractor to cook food in a kitchen outside the factory and bring food inside during lunch/breakfast time to serve to employees. The contractor engaged 17 contract laborers for this activity. The laborers used to be inside the factory only during lunch/breakfast time.

The question is, are these contract laborers required to be covered under PF and ESI? Out of the 17, only 9 used to come inside the factory, while the rest managed the kitchen/shopping activities outside. The company pays the contractor per unit of meal/breakfast basis and a lump sum amount for his administrative costs (kitchen rent, manning costs, utensil rental, fuel, etc).

Yes, dear,

Definitely, it is the prime responsibility of the Principal Employer.

PF and ESI compliance must be done.

Regards,

Kailas

The debate here is that the company takes food on a per plate cost, and the persons are working partly inside, partly outside, and not for 8 hours. If so, then what about agencies/vendors who supply raw materials, spare parts, packaging materials, PPE, stitched uniforms, etc., to the company... In a way, all these are linked to the manufacturing process directly or indirectly. Is the company responsible for such labor/contract labors who are engaged in the above activities for PF/ESI compliance?

PF and ESI Facility for Contract Laborers

No need to provide the PF and ESI facility. Why should the principal employer provide this facility if they are paying their bills/payment? If there is any law or requirement regarding this, please share it with me. I am also facing a similar problem.

Regards