How Should I Handle ESI and PF for Part-Time Housekeeping Staff Already Employed Elsewhere?

I want to know the treatment of housekeeping staff salary who is already a full-time employee in another company where his ESI and EPF are being deducted. One works on an hourly basis (as an SBI ATM guard), and the other receives a fixed Rs. 4000 per month for working as a government hospital cleaner.

It is clear that neither of them is considered my staff. However, I do not deduct any ESI or PF from them.

Is this correct?

In this type of situation, in my opinion, the employee should be engaged through one contractor who will comply with PF, ESI, etc. Direct appointment will create problems in the future.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons]

Hi, @A Gupta,

Under which category was he employed?

1. On the payroll
2. Contract or casual - both being ruled out as you are not deducting PF, ESIC, etc.

Is he on a contract under the Contract Act to provide housekeeping services?

If so, is it legal? If this is not the case, please share any other options. If something were to happen to him while working on your premises, it could be a big issue.

Future Employment Challenges

What kind of problems might arise in the future?

Employees are engaged and paid only a salary without PF & ESI deductions, which is illegal. This situation leads to double employment. If one organization is already deducting PF, ESI, etc., another organization cannot deduct under the same UAN — this constitutes double employment.

Any authority in the future may raise questions on all of the above issues, and there are no answers.

Only if the same employee is engaged through one contractor who complies with PF, ESI, etc., and is engaged in different organizations for some hours in a day, is it possible. Still, there will be an OT issue.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons]

Mr. Gupta, please clarify whether you are employing him on a monthly fixed basis or an hourly basis. Are you a contractor or a direct employer? What is the salary you are paying him?

I'm a direct employer. I pay the sweeper Rs. 4000 per month. He is a full-time private employee at the government hospital with ESI and EPF. I pay another helper on an hourly basis - Rs. 100 per hour - who works as a security guard with SBI. He also has ESI and EPF.

Kindly answer now.

Thanks for the clarification, Mr. Gupta. From what I read above, it is apparent to me that both of them are your staff. There is no second thought on it. You have employed them, so they are your employees. The fact that they work part-time or on an hourly rate is immaterial. So you are liable to pay both PF and ESIC for them.

PF and ESIC Obligations

For PF, you need to use the same UAN as his existing one with the hospital. For ESIC, I am not sure if you can use the same beneficiary code or need to make a new one, as I am not familiar with the ESIC procedure. You need to take the help of someone for it.

Potential Issues with Dual Employment

This may, however, create a problem for the employees as their second job will become evident to their permanent employers as the entries will appear in the PF account. I do not know whether they are allowed under their terms of employment to do work for someone else in addition to their regular government jobs.

You, however, do not have an option not to pay the PF and ESIC if you do not want to violate the laws yourself. Even if you were to put them through a contractor, you would still be liable if the contractor does not pay PF and ESIC.