How Should Employers Ensure Contractors' EPF Contributions Are Properly Linked?

Dear All,

Please find attached an internal circular by the Regional PF Commissioner (Compliance) stating that the PF Enforcement Officials, during their inspection of establishments, should verify that the contractors/subcontractors' PF remittances and their bill clearances by the Principal Employer are linked together for the effective implementation of the PF Act.

Regards, Murthy K M

Hi All,

The PF authorities have no statutory power to verify such things. Recent judgments confirm that contractor non-compliance can't be made the responsibility of the principal employer if the contractor has been allotted a separate PF code.

Earlier, the PF department issued such circulars without having statutory powers and recalled them after some court judgments. Through these types of circulars, the department is enforcing the principal employer to do their job like TDS.

Regards,
Keshav Reddy

Dear all,

In response to his circular, please check this link: http://www.labourlawreporter.com/arm-twisting-of-principal-employer-by-epfo/.

Phani M