Dear All,
I have query related to Applicability of Contract Labour Act & PF Act:
XYZ Ltd. is Solitaire Cutting & Polishing company, it outsource its job work to its job contractor to manufacture at their premises. The job contractor take rough Solitaire from XYZ company's office. The Job Contractor cut & polish the solitaire in their own factory premises located in various districts of Gujrat & Maharashtra. These Job Contractor raise bill on the basis of quantity of polish Solitaire they produce in their factory. These job contractors are free to have rough solitaire for polishing from other companies also, in most cases they do get it from other companies. They employ their own worker and pay salary to their workers on the basis of piece rate basis. Almost 90% Job Contractors doesn't pay PF and ESIC benefits to its workers.
Labour officer from Labour department & PF enforcement officer visits office of XYZ and observe the payment made to these job contractors.
1) Now my query is whether in given scenario XYZ Ltd. can be treated as Principal Employer;
2) Whether XYZ Ltd. is liable to deduct PF & ESIC from the payment of its job contractors. since these payment includes their profits also.
Looking forward for your reply.
With regards,
Avinash K.
I have query related to Applicability of Contract Labour Act & PF Act:
XYZ Ltd. is Solitaire Cutting & Polishing company, it outsource its job work to its job contractor to manufacture at their premises. The job contractor take rough Solitaire from XYZ company's office. The Job Contractor cut & polish the solitaire in their own factory premises located in various districts of Gujrat & Maharashtra. These Job Contractor raise bill on the basis of quantity of polish Solitaire they produce in their factory. These job contractors are free to have rough solitaire for polishing from other companies also, in most cases they do get it from other companies. They employ their own worker and pay salary to their workers on the basis of piece rate basis. Almost 90% Job Contractors doesn't pay PF and ESIC benefits to its workers.
Labour officer from Labour department & PF enforcement officer visits office of XYZ and observe the payment made to these job contractors.
1) Now my query is whether in given scenario XYZ Ltd. can be treated as Principal Employer;
2) Whether XYZ Ltd. is liable to deduct PF & ESIC from the payment of its job contractors. since these payment includes their profits also.
Looking forward for your reply.
With regards,
Avinash K.