Navigating Labor Licenses: Will My Consultant's ESI and PF Payments Affect Me Later?

Dear team,

Please help with a clarification. I am a transporter for a manufacturing company. My labor is working there, and their ESI and PF are being paid by my consultant under his code. Now, the manufacturing company has asked me to obtain a labor license.

If I obtain the labor license, and my consultant continues to pay ESI and PF under his code, will it have any impact on me in the future?

Thank you.

Dear Team,

Please help in one clarification. I am a transporter for a manufacturing company. My labor is working there, and ESI and PF are being paid by my consultant under his code. Now, the manufacturing company has asked me to obtain a labor license.

If I obtain the labor license and my consultant continues to pay ESI and PF under his code, will it have any impact on me in the future?

Thank you.

Contractor and Sub-Contractor Compliance

It appears that you are a contractor, and your consultant is a sub-contractor. Basically, employees are deployed through the consultant (sub-contractor) who complies with PF & ESI. Hopefully, employees are entering the manufacturing premises through a gate pass issued in favor of your organization.

There is no issue in the above arrangement. You may take a labor license—there is no harm. However, there are principal employers who ask the sub-contractor also to take a labor license as all compliance is done by the sub-contractor. In that case, the sub-contractor will also be required to take a labor license after obtaining Form-V from the principal employer.

Regards, S K Bandyopadhyay

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