Usually, a manpower supply company maintains salary particulars like PF, ESI deductions of their company staff, even though they sponsor them as employees, trainees, apprentices, or contract-based employees to a contractor or a government institution.
Every month, the company obtains attendance particulars of those employees sponsored to a contractor or a government institution. It then issues each employee's pay particulars, including PF and ESI deductions, matching contributions to be paid by the company itself. That salary particulars sheet will be submitted to a contractor or government institution.
Subsequently, the contractor or government institution that engages employees from the sponsoring company issues a total cheque for all sponsored employees working with it.
Upon receiving the cheque, the company will pay salaries, deducting the PF and ESI contributions of each employee, and also remit matching contributions of PF and ESI for each employee. It will send a payment acknowledgment to the contractor every month.
It is important to note that even though an employee is working as a trainee or apprentice in a hospital or before the contractor to learn a skill and update their knowledge through training, they are essentially a regular employee before being sponsored to a contractor or a government institution.
Furthermore, in any case where the contractor or government institution does not pay the salaries cheque on time, delays, or refuses salaries, the company has to pay salaries to all sponsored employees without any hindrance. The company is liable to pay all dues, including PF, ESI deductions, and matching contributions without fail.