If we hire contractor to supply 5 labours a day. Does contractor need to have his own EPF no?

Hi, A factory having about 425+ employee on roll. establishment has its own epf no under the act.
My query is
a) if they hire contractor to supply 5 labours a day. does contractor need to have his own epf no ?
b) if establishment calls an international labour for six months job in india? what are the formalities to be done by establishment under EPF act.
Appreciate if your answers supported by sec of act/ circular/ rule?

Pl.check whether the contractor has other commitments for supply of labour for other such principal employers. Most probably they will have other contracts also like yours, in which case they may be subjected to EPF formalities. However, in order to avert future complications better ask him to register for EPF to employees they are supplied to your estt.
W.r.t. employing international workers, please browse EPFO website for proper guidelines. Copy of one circular issued w.r.t. international workers is attached for your guidance.

In reply to the first query - if a contractor is engaging 5 employees per day, is it necessary to have EPFO coverage of the contractor. My views are as follows:-
1. Contractor may or may not supply contract labour to other places for which the contractor should have one PF code ( If total no. of employees in the payroll of said contractor is 20 or more)- it is always better.
2. But the issue is the organization has 425+ employee i.e the organization is covered under PF and ESI . Therefore, who ever works whether directly or through contractor will also be covered under PF & ESI whether the contractor is engaging only 5 employees. In case contractor has no PF or ESI code, compliance has to be done through PE's code.
Please go through the definition of employee under PF & ESI Act and your doubt will be clear.
S K Bandyopadhyay (Howrah, WB)

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