I shared my CiteHR experience with one of my friends. He has given us a situation to find a solution: His factory engaged a canteen contractor to cook food in a kitchen outside the factory and bring food inside during lunch/breakfast time to serve to employees. The contractor engaged 17 contract laborers for this activity. The laborers used to be inside the factory only during lunch/breakfast time.
The question is, are these contract laborers required to be covered under PF and ESI? Out of the 17, only 9 used to come inside the factory, while the rest managed the kitchen/shopping activities outside. The company pays the contractor per unit of meal/breakfast basis and a lump sum amount for his administrative costs (kitchen rent, manning costs, utensil rental, fuel, etc).
From India, Madras
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The question is, are these contract laborers required to be covered under PF and ESI? Out of the 17, only 9 used to come inside the factory, while the rest managed the kitchen/shopping activities outside. The company pays the contractor per unit of meal/breakfast basis and a lump sum amount for his administrative costs (kitchen rent, manning costs, utensil rental, fuel, etc).
From India, Madras
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Yes dear, Definately, its prime responsibility of Principal Employer. PF and ESI compliance must be done. Regards, Kailas
From Germany
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From Germany
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The debate here is that the company takes food on a per plate cost, and the persons are working partly inside, partly outside, and not for 8 hours. If so, then what about agencies/vendors who supply raw materials, spare parts, packaging materials, PPE, stitched uniforms, etc., to the company... In a way, all these are linked to the manufacturing process directly or indirectly. Is the company responsible for such labor/contract labors who are engaged in the above activities for PF/ESI compliance?
From India, Madras
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From India, Madras
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PF and ESI Facility for Contract Laborers
No need to provide the PF and ESI facility. Why should the principal employer provide this facility if they are paying their bills/payment? If there is any law or requirement regarding this, please share it with me. I am also facing a similar problem.
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From India, Pune
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No need to provide the PF and ESI facility. Why should the principal employer provide this facility if they are paying their bills/payment? If there is any law or requirement regarding this, please share it with me. I am also facing a similar problem.
Regards
From India, Pune
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ESI - Construction site workers.pdf