Starting a Manpower Firm: How Do I Handle EPF and ESI Compliance Challenges?

I have recently started a proprietorship firm and received an order for contract manpower with a reputed Oil & Gas Company. My firm has VAT, CST, and Service Tax numbers already allotted. As the principal employer, the Company has asked my firm to ensure all compliances, including EPF, ESI, and an Indemnity Bond. The issue now is how to handle EPF and ESI.

Challenges in Handling EPF and ESI

The challenges are as follows:

1) I do not have permanently hired manpower, so how can I apply for EPF?
2) How should I manage ESI?
3) Are there any other legalities required?

Currently, I am compelled to subcontract the same order as I do not have a PF Code and ESI. Please assist me with this issue. Your help would be greatly appreciated!

Regards,
Prateek

Hi,

Please ask your manpower provider for the same. If they don't have it, then these so-called individuals will be enrolled in your master roll, and you will need to obtain the ESIC/EPFO for them as the principal employer and pay their contributions.

Nowadays, most organized manpower suppliers have their own ESIC/EPFO code and ensure compliance. You just have to recruit them as contract workers, adhere to the CLRA 1970 rules, and offer them Form V when requesting contract workers.

Thank you!

Thank you for your kind response. Currently, the manpower provider is handling all the compliances. However, I am looking to acquire EPFO and ESI for my own firm to become a complete manpower provider in the future. What is the minimum workforce required for EPFO registration under the Voluntary Registration provision?

For voluntary registration, there is no restriction on employees. However, for ESIC, there is a compulsion of 10 with power or 20 without power. So, if you have 10+ manpower, then go ahead.

Dear Team, I am the proprietor of a manpower supply agency. I need help to prepare an offer letter for handling company PF/ESI. If you have any guidance, please assist me. Thank you.