Subcontracting - My Company Liable To Check ESIC And PF Compliance?

m.poonawala@hotmail.com
Hello, My query is that if i employ a facility management company which charges on per sq.ft instead of per employee, will then be my company liable to check if they are following ESIC and PF rules and regulation. and if they fail to pay the PF & ESIC will my company be liable in that case.
Harsh Kumar Mehta
1. Sir, please confirm whether your company/unit is covered /coverable under ESI Act, 1948 as well as under EPF & MPs Act, 1952.
2.If covered under above Acts or any of above Acts, compliance in respect of contractor employees (if getting wages within coverable limit) is required to be made positively. Mode of engagement of contractor i.e. whether on sq.ft area basis or on lump sum basis or on any other basis is of no importance and are irrelevant. Similarly whether you or your contractor pay to the contractor employee on piece-rate basis, daily basis or on any other basis is also irrelevant. Important issue is only that the employee is working relating to or in connection with the work of the factory/unit.
Srinath Sai Ram
Please check ESI & EPF Compliance in respect of Employees posted to your Establishment based on Attendance Register & Salary Abstract.You can link respective Contractor in ESI Portal & EPF Portal to track Compliance Status on Monthly basis.You as Principal Employer will be held responsible for Non Compliance
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