Struggling to Get a PF Code for Contractors? Seeking Advice on EPFO Compliance

We advise our contractors to obtain their own 'PF code' for their establishment/firm as they are deploying daily manpower of more than 50 individuals. The EPFO authority refuses to allot a PF code to contractors and advises them to ensure compliance under the code of PE, with a copy sent to us. Can you assist us in this matter, or provide advice on how contractors can obtain a PF code for their firm/establishment? Previously, the EPFO was allocating PF codes to contractors.

No one can be refused without reason; some reasons are available in your concern. Please study the matter again as per the EPF Act and inquire why a separate code may not be allotted to the contractor. In the future, the contractor may employ his manpower in other establishments as well. How will he ensure compliance in such cases?

Therefore, kindly review the matter again and provide your response here.

Thank you.

It is rightly said by Mr. Ashok that advice should be given to your contractors to show one muster roll of all the employees to the EPF authority. I believe they have only submitted one register that is maintained at your factory/establishment. However, the EPF authority requires all manpower details of those who work under a single contractor.

Example of Contractor Manpower Details

- Contractor manpower at your establishment = 50
- Manpower posted at other sites = 20
- Total = 70

They should provide a detailed register of all 70 employees.

Thank you.
Regards

Dear Lahor, this is to inform you that first, you need to apply for firm registration of your establishment. After that, you have to register under the Shops and Establishment Act for 50 members. Then, it will be easier to obtain a PF code.

Regards,
Ramesh
Hyderabad

Documents Required for Contractors to Obtain PF Code

1. Shops establishment registration or registration of the firm.
2. PAN number.
3. Bank account details.
4. Form 5 issued by the principal employer.
5. Address proof.
6. Salary sheet.
7. D/D.

Perhaps the contractor is not providing these documents in support of the application, which is why the PF authorities are denying the same. Please confirm with your contractor.

As per the act, it is ultimately the principal employer's liability to comply with the EPF act if any or all contractors fail to comply. Firstly, I advise you to check if all your contractors have obtained a labor license for engaging workmen. If they haven't, then see if you could provide them with a Form 5 under the Contract Labour Act.

Secondly, after obtaining the labor license, instruct them to apply for a PF code if they don't have one. If your contractors have less than 20 employees in total, including all their staff, then you must proceed to ensure their compliance under your code and adjust their bills accordingly.

With Regards,
Sumit Chattopadhyay