How to Handle Unpaid ESI and PF Contributions for Contractor Employees from 2018?

Engagement with Manpower Contractor and Contribution Issues

Engaged a manpower contractor for the supply of manpower for the unit over a long period, which was subsequently terminated in December 2018. The employer failed to pay contributions for both employees and employer from April 2018 to December 2018, and the contractor did not remit the contributions for ESI and PF.

PF Contributions for Selected Employees

Now, if the employer chooses to pay contributions to the contractor for 10 out of 20 employees, will the PF system accept the contributions for those employees for each month from April 2018 to December 2018? Should the employees of the contractor initiate the settlement of claims?

ESI Contribution Payments

Regarding ESI, can we make payments in terms of contributions to the contractor to cover the same for their employees for the period from April 2018 to December 2018?

Registration and Contribution Process for Contractor's Employees

If the contractor's employees are registered under the principal employer code, they can proceed smoothly. If they are not registered but are mapped under the contractor, they can still proceed. However, if they are not registered at all, they must approach the PF Commissioner along with their documents, such as the contractor license to appoint the labor contract and the master roll of employees.

Based on the merits of the documents submitted, and if necessary, a personal hearing, the commissioner may issue an order to accept the contribution of contractor-based employees.

If mapping is completed, there should be no issue in submitting ESIC contributions. However, in a time-barred case, the Principal Employer (PE) must submit the salary sheets to the ESIC regional director. The regional director will then issue form 19C for payment, which may vary from the sheet as it would contain assessment figures.