Can We Pay Contractors' EPF & ESIC Contributions Directly and Avoid Compliance Issues?

IR-MANAGER
Dear Experts, please provide expert opinion on the below matter:

Contractor EPF & ESIC Contributions

1. We have contractors who have their separate EPF & ESIC code numbers. With the wage bill, we are paying their employer contributions of EPF & ESIC. Our query is: can we pay the EPF & ESIC contributions directly through their (contractors') EPF & ESI portal and debit it from their bills?

Liability for Compliance Delays or Defaults

2. Is the principal employer liable for delays or defaults in compliance by contractors who have their independent code numbers?
Reference: Pradeep Kumar vs. Presiding Officer P&H High Court, Group 4 Securities & Anr vs. EPFO Appellate Tribunal 2012 Delhi HC, Bakers India Ltd vs. EPFO 2015 Madras High Court, Calcutta Construction Company 2015 P&H Court, Enfield India vs. EPFO Madras High Court 2003.

Regards,
HP Singh
Babu Alexander
Contractor's Independent Code Number and Liabilities

When a contractor has an independent code number, their liabilities increase concerning their employees. Upon allotment of the code number, the Provident Fund Authorities recognize the contractor as an 'establishment' since it has complied with all the prescribed conditions. A principal employer cannot be held responsible for the omissions and commissions of the contractor's employees. The scheme of the Contract Labour (Regulation & Abolition) Act stipulates that the principal employer will not supervise the workers of the contractor; otherwise, the contract labour system will be rendered as a sham, ruse, and camouflage, as held in Steel Authority of India Ltd. vs National Union Water Front Workers, 2001 LLR 961 (SC).
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