Contractor's EPF and ESIC Non-Remittance: What Steps Should We Take Now?

Hello Everyone, I am working with a government organization where we hire a contractor who provides us with all kinds of labor for technical work. After two years, we came to know that he is not remitting laborers' EPF & ESIC in their respective accounts. After that, we have taken action against him for EPF non-remittance.

Queries for ESIC

1. Whether he is liable to remit both (employee & employer part) in their account?

2. If he has not remitted the required amount, then what steps should we take?

According to my knowledge, the benefit periods are as follows:

Apr-Sep: Jan-Jun
Oct-Mar: July-Dec

First, we need to check which benefit period we are in. For example, if it is Oct 2017, it would be better to pay arrears for the Oct 2016-Mar 2017 period. The remaining amount can be paid through the Omitted Wages option. Both contributions must be remitted.

Employees only receive benefits from arrear wages. Otherwise, the omitted wages amount (6.5%) goes to the government (ESIC).

Rajan J
7418814737

Hello Rajan Ji,

Thank you for your reply.

It's pending since August 14, and his contract ended on July 31, 2017.