Dear Mr Ashishsah,
Pls elaborate what kind of challenges you are facing?
What type of contracts awarded?
Whether they are complying MW Act?
What is your role / designation in scrutiny of the contracts/challans?
Whether the compliance have been challenged by any employee / labour office?
Generally it is our mind set to ask the contractor for PF-ESI challans alongwith the bills. But actually it is not a legal requirement. If the vendor is not registered how challans can be submitted.
First of all while awarding any contract (specially related to manpower deployment), we have to ensure whether the contractor is covered under PF-ESI or not. Generally if the PE is registered under PF-ESI than the contractor’s personnel should also covered under social security system.
From my point of view, the most important point is that if the contractor has include PF-ESI and other benefits costing in the commerical rate, than you can deduct such amount from the monthly bill. Pls drag out the commercial documents and ask the person who awarded the contract, on which basis the contract awarded. There should be an internal committee who approve such contracts. In your organization this happended for 20-25 cases which shows it happened intentionally.
If the management want to correct the same, first of all take an undertaking from the contractors duly showing "In future if there will be any query / claim for the non-compliance related to their contract period, they will be responsible for the same.
Than you can terminate the contract (with adequate notice period as provided in the commercial agreement) and award new contract to PF-ESI Registered vendor.
I strongly recommend to recover the amount of statutory benefits from all the contractors (if they have include in their costing). Because it is your organization’s fund which they claimed / earned without making any compliance.
Hope the above will serve your purpose, for more pls clarify my above mentioned points. Fellow members can throw more light on the matter.