Our organization is engaged in construction activity. Most of our work is outsourced to subcontractors with fewer than 20 employees. Do we need to have them covered under PF as they work on the premises of our client?
PF Coverage for Contract Workers in Registered Factories
If the contract workers are working in a factory that is registered with the PF department, the contractor workers are also required to be covered under PF. This requirement applies irrespective of the fact that they individually have fewer than 20 employees.
Based on my experience, subcontractors generally won't agree to it. However, if a subcontractor wishes to register, they can do so even if they have fewer than 20 employees/labour.
Workers' Compensation Policy in Construction
As you are involved in the construction industry, you should request a Workers' Compensation (WC) Policy and make it mandatory for subcontractors to prevent any inconveniences in the future.
The law requires an edict to be paid for all contract workers, which includes subcontract workers. It does not matter whether the subcontractor agrees or not.
There is also a provision for the principal employer to pay the amount under his own code where the contractor is not registered.
Employment of a White Wash Worker for a One-Week Period
The employment of a white wash worker for a one-week period will be applicable with ESIC (Employees' State Insurance Corporation) and PF (Provident Fund) benefits. This sentence discusses the application of these benefits for a specific short-term employment period.
All contract workers have to be covered under PF and ESIC, even if they are working for just one day.
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