Direct payment of pf and esi by principle emplyer

Some contractors take PF AND esi amount by claiming in BILL and fail to pay. In such cases can the principle employer can directly make payment . if yes what is the proedure

Why not Mohan? You can make appropriate deduction from his bill.
But it is suggested to ask the Contractors to comply the PF & ESI.
Why not you make a checklist for verification and follow before releasing his or their payment.

Hi
Venkata Vamsi Krishna
I fully agree with you. But is there any method by which we can directly pay

It is simply taking his Establishment codes and making payment from our end.

It is not advisable to do so. Always engage contractor who has the codes. Alternatively the contractor can show the manpower on muster roll of someone who has the code numbers. In such case there will have to be formal agreement in this regard.

Dear Mr.SHRIKANT PRA,
I am advising to pay in the Contractor's code only. Not in employer's code,but the employer can pay from his account and adjust/deduct in the payable amount/invoice of Contractor.

Please understand the legality of remittance by PE. It may be inferred that it is a sham contract.

Inferences are less in important than actual compliance as per me.
Principal employer has an over all responsibility to see that compliance is made on time by his contractors.

Inferences are less in importance than actual compliance as per me.
Principal employer has an over all responsibility to see that compliance is made on time by his contractors.

Dear All
It is always advisable to ask the Contractor to remit the PF & ESI dues in his code numbers. If in case the PE remits the PF / ESI dues in their code numbers, then the workers will have statutory proof of PF pass book and ESI cards as if they are directly employed by the PE, they are paid wages by the PE and their contribution was being paid by them. Alternatively, you may think of entrusting the entire responsibility of Contract Labour Management to an independent Agency. If anybody require any help / support, pl contact us. Regards.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; E-mail : [Login to view])