My personal experience in my organization as well as other organizations are different. In my organization we are out sourcing 160 employees through our pay roll and we have 6 employees at our office. We have faced both PF authority and ESIC authority regarding the captioned subject. We have PF & ESIC code. When PF Inspector visited our office, checked pay roll, muster roll and found every thing was ok, Then checked the balance sheet and ledger where in ledger the inspector noticed repair and maintenance booking was about 1.5k in the year 2013. We clarified that the cost was related to AC machine repair ( parts and labor charge) and few hours work. He advised to pay PF for the employee.
We explained the logic behind payment for one day and the employee has not any PF Code. Now it is much more complicated for UAN and other formalities. The concerned Inspect then suggested unofficially that book the amount in any other item or do not book it as our organization is Proprietary organization and the amount is less. He did not initiate any action.
In case ESIC , the inspector serve a notice to pay both employer and employee amount in a misc. challan which we were paid. He also said to induct people through contractor. He mentioned one very valid point that in case of any accident PE will be solely responsible in absence of ESIC coverage of the person.
Today we are not booking such cost ( AC m/c repairing or service, Plumber, Carpenter etc.) maximum 10k per year in our accounts. It is possible because the amount is less.
The same problem is faced by many organizations including some of my clients as also mentioned by Mr. Banerjee.
My personal opinion is always better to engage any person through contractor if possible. In case of single person with specialized job better to enroll under ESIC in PE's code and for one/ two days work. But risk may be taken not to comply PF as I have noticed in some other organizations for 1/2 days work PF authority is not forcing for compliance.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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