whether Labour Contractor has to Pay PF or not

Hi ,
i am running a business with 50 Employees. Among them 32 are hired by me. 18 are hired by labour contractor. I just need to clarify whether the labour contractor should opt for PF & ESI as the number does not exceed 20 in number. Plz guide me whether to ask Labour Contractor to deduct Pf & ESI from 18 workers Salary.

The act is applicable to you & he is your contractor. As such it becomes applicable to him also irrespective of his manpower.

Dear Friend,
1. Yes Labour Contractor must opt for his own PF & ESI Registration and get his own PF & ESI code and start deducting PF & ESI Contributions from the salary/wages of the employees. Although qualifying numbers required are 20 but the departments will register him. Going forward whne more employees are engaged through contractor with growth in business this will come very handy.
2. Yes he should deduct ESI & PF and deposit with concerned department.
Warm Regards
Bharat Gera
HR Consultant