Are PF and ESIC Necessary for Short-term Data Entry Operators in IT Firms? Seeking Advice on Compliance Challenges

Friends,

I am serving as a legal executive in an IT company. We appoint data entry operators and scanning operators on a day-to-day basis through consultancy, and even for specific projects for a short duration.

I wish to know whether PF or ESIC is applicable to them. Under the PF act, PF is applicable to firms with more than 20 employees. We have a maximum number of people serving under consultancy agreements and job work.

Is there any way to avoid the applicability of PF and ESIC since they are not regular employees? It is really impossible/cumbersome to hire them as regular employees.

Secondly, as the payment is very low, these employees do not even allow us to deduct the PF.

Hi,

In your case, contribution towards PF and ESI is a must. Hiring and not contributing towards ESI and PF is an unethical practice. But advice is always advice, whether negative or positive. Thus, I am answering. You may hire employees through a contractor, and none of these contractors should have more than 20 employees and issue the contractor a Form 5 under the Contract Labour (Regulation & Abolition) Act.

Warm regards, Umesh Chaudhary (welcomeumesh@yahoo.com)

Hi All,

Do we deduct PF and ESI from the temporary employees and casual employees' pay? I have another doubt: do they have any leave eligibility like CL and any other leaves by which their pay cannot become LOP/LWP.

I think the classifications are:
1. Permanent
2. Probationers
3. Temporary
4. Casual
5. Badli
6. Trainee/Apprentice/Learner

Please tell me whether those above highlighted in bold (classifications of employees) have any kind of leave eligibility like CL or any other leaves. We have planned to recruit temporary staff, and their pay is fixed on a daily basis, so let me know.

Regards,
Jaanu

Hi All,

Please also inform me about the week-off for temporary staff and casual staff.

Regards,
Jaanu