Contractors Pf And Esi

Hi All,
I have a query for the contractors who are working for us but they have less than 20 employees in total. Are they covered under PF & ESI?
If not, are we as a prncipal employer liable for the PF & ESI of their employees.
Please guide me...........
Thanks
Vijayasaravanan. S

Dear Vijayasaravanan
As a Principal employer you have pay their PF in your code. The paid PF amount may be deducted from the Bills of your contractors as per the LOI made between you and your contractors. But you can deduct 12% employee share without any doubt. The employer part 13.61% may be deducted as per the terms and conditions.
The ESI also applicable as above.

M/s Visa,
PF and ESI are social security legislations. Once these legislations / schemes applicable to the principle employees then the same will automatically applicable to the employees of the contractor even though the number of employees is less than 20. You as a principle employer have every right to cover them under the schemes and contributions made by you shall be adjusted against the bills payable to the contractor. You may include a clause in this regard in the agreement of contract.
regards
palani

Dear Vijayasaravanan,
If the total employee strength of the concerned contractor is less than 20, then the contractor will not be eligible for registration under PF/ ESI Acts which in turn would not be the obligation of Principal Employer too to cover the outsourced staff under said acts.
Once the number meets 20 or more, then only these statutory norms would be applicable.
Regards,
Piyush Tripathi
Manager-HR

Hello Sir ,
I am shubhlash Tiwari and very new To IR ,I had an experience of 5 years but into recruitment ,but now i had join a new company and there I have to handle the IR part . so please suggest me .. how should I start.. I need the full information about Labour Law.ESIC ,PF And WC policy .
Please help me sir .

Hello Sir ,
I am shubhlash Tiwari and very new To IR ,I had an experience of 5 years but into recruitment ,but now i had join a new company and there I have to handle the IR part . so please suggest me .. how should I start.. I need the full information about Labour Law.ESIC ,PF And WC policy .
Please help me sir .