How Can I Persuade My Employer to Put All Employees on the Payroll? Seeking Advice!

As we all know, most employers don't want to take liability for employees. In my case:

- The total number of employees is 110.
- I have only 25 employees on the payroll.
- The rest are 4 contractors, but they only have a total of 20 employees on their own payroll, responsible for maintaining attendance and salary registers, while the others are off the payroll.
- As per my knowledge, the employer can't provide labor contracts on the company's premises for core processes.
- I want to bring all employees onto my payroll. The benefits I can offer include salary slips, experience certificates, proper bonus distribution, and reduced register maintenance.

How to Convince My Employer to Bring All Employees onto the Payroll

My question is, how can I convince my employer to bring all employees onto the payroll? What points should I consider? By which means can I convince my employer?

Your help is much appreciated.

Regards

Factors to Consider Before Hiring Off-Roll Employees

There are so many factors involved in hiring off-roll employees instead of on-roll employees. You cannot approach your organization to put all these employees on company rolls just because you want to give them a salary slip, experience certificate, etc. If you are really keen on putting them on company rolls, please analyze the following:

1. Does your company have a regular requirement for these employees?
2. Are they engaged in the core activity of the manufacturing process?
3. Does your factory's license have the capacity for 110 employees?
4. Are these employees skilled in this particular field, and would they be valuable to the organization?
5. Would it be costlier or result in cost reduction by bringing them onto company rolls?

Before proposing to regularize them on company rolls, consider the above points and provide a proper description to explain to the management how it is worthwhile.

Regards,
Jitender

Dear Mahesh, please provide complete details whenever you raise any query. Have you obtained the Contract Labour Registration of Establishment Certificate? Have you issued Form V to all your contractors so they can apply for a Labour Licence? Who is your licensing authority, and under which act is your establishment covered? Does your labor strength fluctuate on a daily basis, or is it constant? How are you currently maintaining the records? If the nature of the work is permanent, why has your management deployed contract labor for those tasks?

If you respond to the above questions, our members will surely provide you with a suitable reply to your query.

Thank you.

Dear Boss, we did not provide Form V to the labor contractor. They don't have a labor license, which is why they are keeping their employees under 10. Currently, they are only maintaining attendance and a salary register. I was shocked to learn that they are using our company's PF number and making PF payments.

You did not reply to all the questions raised in this forum.

Contract Labour Act Compliance

1. Do you hold a Registration Certificate under the Contract Labour Act as a principal employer, or do you hold any valid Contract Labour License as a principal contractor? If you hold one, you must cover the PF and ESI for the workers of the contractors who do not have their own PF and ESI Code. If you do not have them, you cannot engage contract labor in your industry.

Workforce Management

2. What about the workers engaged by you? Are they coming regularly, or are they changing regularly with new workers getting engaged regularly to maintain a constant workforce?

EPF Portal and PF Management

3. It is surprising to know that without your notice, others can upload the ECR File in the EPF Portal. Please find out who has suggested paying the PF of your contractors' workers through your PF Code. Download the details of workers from the Portal, check the names and amounts. Keep the Paysheet and muster roll of workers ready, as the PF Inspector may request the details at any time. Provide necessary instructions to the contractors not to operate your PF code directly without your consent. You can deduct the PF amount directly from their bill and remit it to the EPFO in your code. If the PF is remitted to your account, provide Form 5 & Form 10, and ensure the withdrawal application is forwarded through you with your authorized signatory's signature.

Inform the subcontractors about the situation and instruct them to submit the Paysheet and muster roll for the period they were engaged in your organization. Verify the records for correctness (basic amount and PF amount with the remitted PF challan).

Biometric Attendance System

For smooth functioning, install a Biometric Attendance system and have all employees enter and exit the premises by punching. Extract the data regularly, consolidate it, prepare the muster roll, and then the paysheet. Pay the PF and ESI from your account. Debit the employee's share of PF directly from the contractors' bill. If the employer's PF is also under the contractor's scope, you can also debit that from the contractors' bills.

We don't register under the Labour Contract Act as a Principal employer. I just joined this organization three months ago. When I discovered this type of activity was occurring, I raised the issue with my Director.

Currently, we are in the process of canceling all labour contracts and will be transferring all employees onto our payroll. I am now confident that I am on the right track.

Thank you so much for your help.