Should We Deduct P.F & E.S.I For 60+ Employees

Hi All,
I am working in a ITES company.Age is no bar for oue company.Currently we have 4 people (Whose age is above 60), who are working with us in contract basis.
But recently i came to know that even though they are contract employees,we will have to deduct P.F & E.S.I for them.Can we deduct P.F & E.S.I for them.Can we take them as our full time employees?
What are all the precautions Or Labour law we will have to follow while we employ people whose age is above 60+.
Thanks
Sumathymaraimalaai

Hi,
You have register all employees with PF & ESI(For ESI- If their salary is below Rs10,000/-).
If the Empoloyees age is above the retirement age and they have already availed the PF benifits then you need not pay the PF for them.
Regards
Vijayakumar

Hello Sir,
He was having P.F in is previous company.He joined us only after his retirement.
Is it o.k if we don't deduct P.F for him
Sumathymaraimalaai

On the issue of contract labour , the ACT (CLRA) says that the contract will be responsible for all the dues he owes to the government and the labourers/ workers/ contract workmen. On the issue of deducting PF/ ESI too, it is dependent on the state which one is applicable, since if PF is ESI is not and vice versa.
But do remember the contract ahs to have a ESI/PF number he has to credit the account of the ESI/PF authorities and receive a "Challan" for the same, you will have to keep a copy /triplicate of this and when you are filing the return will have to display this too.
The contract workmen will be deemed to be your permanent workmen if you do any other the duties of the contractor on his behalf.
DO one thing tell him to give you the cheque for ESI and PF from his side and make your office boy deposit the same and receive the challan, remember friend this challan is very important.
Regards

Hello,
1. fixation of age limit is company's prirogative. no statute is governed for this isue.
2. if the contract employees are under your contract then you should deduct PF. Pl refer the bdeinition clause of PF act.
3. As long as the employees under your employment and if their salary doent cross 10,000/- deduction of PF is manfatory.
thanks and kind regards
Michael Nicholas