Navigating ESI and PF for Contract Employees: What Are the Requirements and Options?

We do have 7 employees in direct contract.

1. Is it necessary to provide ESI and PF facilities?
2. Can we provide ESI facilities only?

Please let me know if you need further assistance.

Coverage or non-coverage of a factory/establishment under the ESI Act, 1948, and EPF & MP Act, 1952 depends on the total number of persons employed on any premises. You have mentioned only direct contract employees. Please refer to the above-mentioned Acts, and if there is any doubt, you may submit the same indicating the points of doubt you have.

Thank you.

We have 70 employees in our organization, and we are involved in Sales & Service. All the employees are covered by ESI and PF as per the act. Recently, we have hired a few employees on contract, and we are not providing ESI and PF for them. I would like to know if it is mandatory to provide ESI and PF since there are only a minimum number of employees on contract.

Kindly suggest.

Regards

You are responsible for the ESI and PF of contract employees regardless of their number.

Regards,
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