Responsibilities of the Principal Employer When a Contractor Defaults
If the contractor is not paying the wages, the principal employer has to pay them to the workers of the contractor. If the contractor has not paid ESI and PF, then the principal employer has to register the workers of the contractor under the principal employer's ESI and PF registration and pay the dues. While salary can be paid directly to the workers, with online portals for ESI and PF payments, only the concerned employer can access the respective portals.
Moreover, if the principal employer pays through the contractor's portals, the payment will be considered as made by the contractor. Therefore, the principal employer should make payments through their own portal and then seek reimbursement from the contractor.