Are We Responsible for PF Coverage of Transporter Employees Unloading and Loading Goods?

Dear Colleagues,

Coverage of Transporters' Employees Under PF

We have two types of transporters and need your opinion on the coverage of their employees under PF:
a) Coming to unload the raw material
b) Coming to lift the finished goods

We have nothing to do with which vehicle is engaged by the transporter and who is coming as a driver. Now, the PF department has issued us a notice to cover these employees under PF. Have we been rightly treated as the Principal Employer by the PF Department?

We would appreciate your expert opinion on this matter.

Thank you.

Transporting raw materials and finished goods: PF coverage requirements

Transporting raw materials to a factory or carrying finished goods from a factory is included in the manufacturing process, and PF coverage is required as per the EPF Act 1952. These activities are integral to your business operations; the employees involved in both operations work within your establishment, and the nature of work is almost continuous, hence coverage is necessary.

You have two options: either the transporter covers them, and you must ensure full compliance, or you can generate a PF sub-code under your code and require the transporter to deposit PF contributions into that account. A better alternative is to insist that the loading and unloading contractor have PF registration, and you oversee the implementation.