Are Workers Under Multiple Contractors Eligible for PF Enrollment? Let's Discuss

In an industry, 1,500 workers are working. These workers are employed under different contractors (100 contractors), each contractor having 15 employees only. Are these laborers entitled to PF enrollment? If there are any provisions in the PF Act, please share with us.

Regards,
Girija Sankar

If contractors are not independently covered under EPF/EPS, they must be covered under the Principal Employer Code Number. Please engage contractors who have all statutory registrations and a good track record in compliance.

Dear Girija Shankar, your industry falls under the purview of EPF once the number of enrolled workmen reaches 20 or more. In response to your query, all 1500 contractor workers, including yourself, must be covered under your PF registration since each contractor has fewer than 20 workmen. Consequently, your management holds the responsibility for the PF contributions of all 1500 contractual workers as the liability of the Principal Employer.

A contractor can obtain EPF registration even with a lower number of workmen. As a principal employer, it is crucial that you ensure all contractors are registered under EPF & ESI. Avoid taking on the liabilities of others as if they were a garland around your neck.

Thank you.