Ensuring Contractor Compliance Without ESI & PF: Should We Require an Affidavit?

My one query regarding contractors is that they do not have PF & ESIC and are working inside our Factory. How can we ensure compliance from contractors? If there is a draft for such kind of contractor compliance, we can collect an affidavit from the contractors.

Dear Dushyant,

No affidavit can substitute legal compliance required under statute. You need to ensure that the respective contractor has their own PF and ESI code and that they deposit contributions timely. Otherwise, as a Principal Employer, you will be liable, and you will be required to deposit the same under your code.

Shailesh Parikh
99 98 97 10 65
Vadodara