PF Coverage To Contractor

Dear Experts,
If any contractor is having more than 20 No's
1. He it necessary to go for PF registration or Those labour can be paid through Client PF Sub code?
2. To take labour license what is min no of labour required?
Regards
Naveen

Dear Naveen ji,
Answer to your first question:
Contractor with 20 and more employees overall is liable to register under PF Act.
Answer to your second question:
Contractor with 20 and more employees in a particular establishment is liable to obtain Labour Licence under CLRA.

dear navin ji,
firstly,,,,,Eligibility for pf is any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment.
Applicability
Every establishment which is factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed.
Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf.
Any establishment employing even less than 20 persons can be covered voluntarily u/s 1(4) of the Act.
secondly,,,,,,,to obtain the labor licence n Registration of Establishment
Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required fee in Form 1
Sec. 7
thanxxxxxxxxxxxxx

Agreed with Korgaonkar including the elaboration by Tahsin Raza, go and act on the advice of both.
Sumit

I would suggest that the Contractor ,if having 20 or more employees , must obtain his own PF Code number because in case of contract with new Employer /company in future,the employees of the contractor will be more secure as far as PF benefits are concerned , specially in respect of EPS .
Chandok A.K.
RPFC (Retd.)
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