Starting Contract Staffing in Hyderabad: Do I Need ESI Under Contract Labour or Shop & Establishment Act?

Hi all, I have recently started a manpower consultancy in Hyderabad. Currently, I am working on IT domestic recruitment. As part of our expansion, I want to start contract staffing. For this purpose, they are asking for the ESI Code and PF code. I am unsure whether I need to apply for ESI under the Contract Labour Act or the Shop & Establishment Act. Could you please suggest which one is better?

Forms Required for ESI and PF

Also, could you advise on the forms that need to be submitted for ESI and PF?

Regards,
Ravisunil

You have to produce the ESI and PF numbers for the staffing if you have more than 20 persons, as per the Contract Labour Act of 1970.

Regards

Since you are starting a contract staffing venture, it is better to have a Contractor License as per the Contract Labour Act, PF, and ESI registration under the respective statutes. These are necessary to establish you as a legal entity separate from the firm where your employees are going to be deployed.

Regards,
KK

Steps for Compliance with ESI and PF Requirements

Hi Ravi, greetings for the day. If you have more than 20 employees, please consider the following steps:

• Apply for Shops & Establishments Act registration.
• Ensure contract agreements are in place with more than two companies.
• Submit online ESI Form 01.
• Fill out the PF Performa (download from citehr).

Thanks & Regards,
Lal Singh