Contract Labour And Daily Wage Labour

In my company I have 90 daily wage worker, now I want to put them under contractor, so my question is who will pay PF to them, is it mandatory provide ESI? And who will pay

Please help me
Sanjivan

Sir,
Actually we are not paying them PF ans ESI facilities,but they are on payroll
so what can i do now,if u dont mind can i call you in the evening

Dear Sanjivan,
Refer the contract agreement carefully. In that, the terms and conditions will be mentioned. If the contractor is agreed to pay the statutory requirement, then there is no matter to worry. If not, then as principle employer you need to ensure that all the statutory obligations are filed on time.
Regards
Ravi A.

Sir,
We are the contractor and ready to pay them ESI & PF. But we claim them with the minimum wages (ESIC at 4.75% and PF 13.61%).
Thanks & Regards
Ramesh
9313302804
GROUP-2 CARE SERVICES

I suppose what you wish to convey is that you have 90 daily wage earners on the payroll of your Co.

Please appreciate a simple fact that Daily Wage is only a mode of payment of wages to the workers. It does not in any ways afferct their status under various applicable labour laws. They are all regular employees of the Co. and they are entitled to all benefits like:

a. Minimum wage
b. ESI
c. PF
d. Bonus
e. Gratuity etc...

Now if you wish to place them all under a Contractor, you will have to terminate the relationship of the 90 employees vis-a-vis their current employer (your Co.) and then re-employ them as Contract Labour.

The best way to address this would be to first obtain the resignation of all 90 employees, formally accept their resignation, settle their dues in full and final.

Termination of their employment is likely to cause legal problems for your Co.

Their employment with the Contractor will be a new innings on fresh terms and conditions.

But then, they will be entitled to all legal benefits mentioned above. The only difference will be that the employees will be on the rolls of the Contractor. He will be resposible for compliance of all applicable statutory obligations.

However, if the Contractor violates provisions any of the applicable labour labour laws, the Co. as the Principal Employer will be liable for the same.

In real terms there is no benefit by making this change.

Best Wishes,

Vasant Nair

In response to your specific query regarding ESI & PF, well it is the Contarctor's responsibility to comply with these obligations. If he does not comply, the Co. as the Principla Employer will be responsible.

dear sanjivan
daily waged workman or contractor, it is the responsibility of the principle employer to make the payment of the ESI, PF, Bonus etc
so, it is better to have contractor who have ESI PF numbers and make the payment through them and ask the contractor, to submit the records to you, then only you have to pay him the bills for the work carried out by them
one thing the contract labour has been banned in certain categories of work, pl check on this. but now=a=days the facory inspectorate are also liberal
- as someone pointed out first get id of all contract workmen legally, infact this is the big work.( to do without attracting much of the labour laws or the self proclaimed labour leaders.
nagaraj
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infact i have selected the contractor and we have arranged for him to get ESI and PF numbers at the cost of the company, and even today the system is working good

Hi, Mr Sanjiv,

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K. Gopi

Skilled Human Resource Capital
Tel: +91 20 40041681, Mobile: +91 9881726080
Email: [Login to view] | Website: www.shrcindia.com

Hi Sir,
We are labour contractors or repute and work for big companies across India.
Please let us know if the requirement can be fulfilled by us.
Regards,
Primo Security and Aliied Services
email : [Login to view]
ph : 09953326981

Sir,
you have to employ a contractor who is holding contract labour licence, if he is employing twenty more people with your organisation. The number of labour are below twenty, no need for the labour licence. but the contractor need to pay the contribution of pf,Esi, Tds etc for them too. we are responsible to check it all before admit them to employ. otherwise it is our responsibility to pay those all for the labour and can deduct the deductions from their payments.

One thing more. If you have employed 90 workers and you are not registered with the RPFO and ESIC, you have already voilated the law. Whatever you want to do is to to it now. Quick.
Get your worker resign. Open a new firm. Re-employ them through contractor. Do all the checks and safe guards as required, as suggeted above.