How Should a Principal Employer Handle Contractors Without ESIC and EPF Registration?

In a factory, few contractors do not have ESIC and EPF registration, and legally it is not required as the number of workers is below 10. These are the contractors selected for a one-time job to cover a project work. How to resolve this as a principal employer. Please advise.

Principle employer is responsible for payment of ESI and PF, even if it temporary job. If you are paying wages to workmen Management is liable for Payment of ESI and Provident Fund Contributions, if the contractor doesn't have any ESI and PF code number.

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Principle employer is responsible for the payment of ESI and PF, even if it is a temporary job. If you are paying wages to workmen, Management is liable for the payment of ESI and Provident Fund Contributions if the contractor does not have any ESI and PF code number.

Hi,

You can work on a "work basis" rather than a labor basis and accordingly deduct ESIC on the labor portion (not material/work) of the work basis bill.