Madhu, harsh
To the best of my knowledge, neither PF nor ESIC act actually has any provision making the principal employer liable for statutory dues of contract worker, out worker or any factory doing job work. The provision making principal employer liable for statutory dues of contract employees comes only in the contract labour act.
In view of the above, you need to see whether they are contract workers under the act or not. If not, then there is no law requiring the outsourcing factory to ensure statutory compliance of the outsourced company.
Please let me know if you know of any provision other than CLRA that makes this mandatory.
To the best of my knowledge, neither PF nor ESIC act actually has any provision making the principal employer liable for statutory dues of contract worker, out worker or any factory doing job work. The provision making principal employer liable for statutory dues of contract employees comes only in the contract labour act.
In view of the above, you need to see whether they are contract workers under the act or not. If not, then there is no law requiring the outsourcing factory to ensure statutory compliance of the outsourced company.
Please let me know if you know of any provision other than CLRA that makes this mandatory.