Do We Need to Handle PF and ESIC for Contractor's Employees in Our Small Firm?

We are a proprietorship firm with 3 employees. We have two contractors who each have three employees working with us. Adding their members, our total strength is still 9, so we do not fall under ESIC or PF.

Of the two people with us, one contractor has more than 10 employees. Therefore, considering the second contractor is under PF and ESIC, do we have to ensure that the three employees under him have their PF and ESIC contributions paid correctly? We already make sure they receive all their holidays and wages. Please advise.

Thanks.

Dear Ramesh,

If your contractors are not covered under the PF or ESIC acts, then there is no issue for compliance. However, under the Wages Payment Act as the principal employer, you have to ensure that every contractor employee receives the minimum wage, and no differentiation in wages based on sex or other factors is made.

Regards

One of my contractors falls under PF and ESI, so what steps should I take? He is paid more than the minimum wages. Keep in mind that we do not fall under PF and ESI.