Are We Legally Required to Deduct PF and ESI for Our 15 Contract-Based Employees?

Dear all,

My employer's nature of business involves working on a contract basis with other companies and currently, we have 15 employees in our company. We would like to inquire whether we are eligible to deduct PF or ESI according to the law, or if it is mandatory for us to do so.

Thanks & Best Regards

Sir, if the unit in which you are working is employing 10 or more persons, then the same is definitely coverable under the ESI Act, 1948, as a "shop" under section 1(5) of the said Act if it falls within the implemented area.

In order to get the issue settled and examined correctly, it is appropriate if you or your employer may contact the nearest office of ESIC along with relevant records and duly completed Form 01 for obtaining a code number under the said Act.