Is Your Company Liable for PF and ESI on Short-term Construction Labor Wages?

Construction work is ongoing at a private company. The company has its maintenance department and employees under it. During maintenance work, they may hire certain laborers and pay them wages. Is PF and ESI applicable, or is it the company's liability to pay ESI? The laborers may be paid wages for 2 or 3 months maximum.

Dear,

Where 10 or more employees are engaged in work at any time with the addition of power and 20 or more without the addition of power, ESI and PF will be applicable, whether the employee works for 1 day or more.

Thanks

Yes, PF and ESIC are applicable to you. If these workers have an existing UAN number for PF, you need to credit the PF in the same code. If not, you need to create new PF codes for them and instruct them to use it wherever they work in the future. Meanwhile, you may also be required to pay cess under the BOCW Act. Please check it out.

Yes, if the company maintenance department is hiring someone to carry out any work in the company, the applicability of PF/ESI exists.

Thanks & Regards,

Sumit Kumar Saxena