Is the Principal Employer Responsible for EPF and ESI When Contractor Lacks Registration?

Dear all,

Good morning. I have a query, please help to solve it.

In an XYZ company, civil construction work is done by a civil contractor. The contractor does not have EPFO and ESIC registration numbers and does not have more than 10 employees.

In this case, is the principal employer liable to pay EPF and ESI contributions for the civil construction labor?

Hi Ajay,

If the principal employer has a PF & ESIC code, then he needs to pay the employees' contributions using his code, and the same can be recovered from the vendor. Please call or revert for any assistance.

Liability only for employer contribution, or employee/labour contribution also? Please let me know.

Once the establishment is covered under PF, then everybody working on the premises has to be covered under PF. The principal employer is responsible for the coverage and payment of both the contributions payable by any contractor.

N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402

Hi Ajay,

The principal employer is responsible for their employees and contract employees. Feel free to call or revert for assistance or clarification.