Manpower Compliance Confusion: Should the Principal Employer or Contractor Handle It?

Responsibility for Manpower Compliances

Who is responsible for manpower compliances in terms of the EPF & Miscellaneous Provisions Act, Inter-State Migrant Workers Act, Bonus Act, ESIC Act, BOCW Act, MPT Act, MLWF Act, etc.? Is it the Principal Employer or the Contractor?

It is the primary responsibility of the contractor to adhere to all statutory and compliance checkpoints for the workmen he deploys. In case the contractor fails to do so, it becomes the responsibility of the principal employer to comply with all such points.

It's absolutely correct. It is the responsibility of the contractor if hired; otherwise, it's the sole responsibility of the principal employer.

Regards,
Sandhya

I am a Civil Contractor based in Pune. I have been working with a reputed Construction Company in Mumbai for the past year. Recently, the Principal Employer has mandated that all contractors register under the EPF Act.

However, my proprietary firm employs fewer than 20 employees directly or indirectly. On any given day, the number of workers at the site is less than 20, including supervisory staff. We are puzzled as to whether the Principal Employer can compel us to register under the EPF Act when the law does not require it.

Please advise.

Regards,
ARP