Dear Professional Friends,
We have introduced a contractor to supply contract labor to our plant. Since the contractor is new and does not have 20+ employees, he is not eligible to obtain the EPF code. In this context, we need to address the service charges of the contractor who has supplied labor for unskilled work.
Please provide your input on settling his service charges despite not having the EPF code.
Thanks & Regards,
Manjunath MH
From India, Bangalore
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We have introduced a contractor to supply contract labor to our plant. Since the contractor is new and does not have 20+ employees, he is not eligible to obtain the EPF code. In this context, we need to address the service charges of the contractor who has supplied labor for unskilled work.
Please provide your input on settling his service charges despite not having the EPF code.
Thanks & Regards,
Manjunath MH
From India, Bangalore
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Dear Manjunath ji,
Your contractor has no more than 20 employees in total. Therefore, he is not eligible for PF registration legally. However, since the PF Act is applicable to you, the employees of your contractor working with you should be covered under PF. If not, you are liable for it.
Since you have engaged a contractor who is not registered with PF, you should ensure the PF compliance of the contractor under your code. The same applies to other social security enactments as well.
From India, Mumbai
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2584Your contractor has no more than 20 employees in total. Therefore, he is not eligible for PF registration legally. However, since the PF Act is applicable to you, the employees of your contractor working with you should be covered under PF. If not, you are liable for it.
Since you have engaged a contractor who is not registered with PF, you should ensure the PF compliance of the contractor under your code. The same applies to other social security enactments as well.
From India, Mumbai
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Dear Manjunath ji, As regards to service charges, it is not a defense available to you that you have nor cleared the service charges of contractor for want of compliance.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Manjunath,
We are service providers for TVS group, VST group, Concorde group, TATA group, Pioneer group, etc., in Karnataka, AP, and Tamil Nadu for the last 20 years. We can help your contractors and your company with labor law compliance in the engagement of contract labor. Please contact us at
.
Thanks and Regards,
N. Natraajhan
From India, Bangalore
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We are service providers for TVS group, VST group, Concorde group, TATA group, Pioneer group, etc., in Karnataka, AP, and Tamil Nadu for the last 20 years. We can help your contractors and your company with labor law compliance in the engagement of contract labor. Please contact us at
Thanks and Regards,
N. Natraajhan
From India, Bangalore
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Liability under EPF falls on the shoulders of the principal employer, i.e., you. Hence, the compliance has to be done by you. If the contractor does not have an EPF code number because the number of his employees is below 20, you have to discharge the PF liability under your code.
Lalit Thakkar
From India, Surat
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Lalit Thakkar
From India, Surat
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Dear Friend,
I fully agree with the views offered by Mr. Thakkar. As an HR Manager, you are to ensure that no contractor is enlisted and engaged for any work who does not have PF & Code Registration in the future. In order to settle the contractor's bill, I suggest you deduct the exact PF amount payable from the bill of the contractor and deposit the same under your code. As the principal employer, you are liable to comply with this requirement.
Regards,
Sibabrata Majumdar
Management Consultant - Legal & HR
Kolkata, Mb: 9830023707
From India, Calcutta
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I fully agree with the views offered by Mr. Thakkar. As an HR Manager, you are to ensure that no contractor is enlisted and engaged for any work who does not have PF & Code Registration in the future. In order to settle the contractor's bill, I suggest you deduct the exact PF amount payable from the bill of the contractor and deposit the same under your code. As the principal employer, you are liable to comply with this requirement.
Regards,
Sibabrata Majumdar
Management Consultant - Legal & HR
Kolkata, Mb: 9830023707
From India, Calcutta
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Hi,
He can opt for voluntary coverage under the EPF Act and obtain the code. Otherwise, you have to deduct PF Contribution and pay it under the contractor-wise list in your establishment code.
As a principal employer, you are liable to comply with the provisions under the EPF Act.
Regards,
Swaminathan
9840330727
swami_v1961@yahoo.com
From India, Madras
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He can opt for voluntary coverage under the EPF Act and obtain the code. Otherwise, you have to deduct PF Contribution and pay it under the contractor-wise list in your establishment code.
As a principal employer, you are liable to comply with the provisions under the EPF Act.
Regards,
Swaminathan
9840330727
swami_v1961@yahoo.com
From India, Madras
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As a new consulting company do we have to have compliance with PF code and ESI code, Please suggest regards Vikas
From India, Hazaribagh
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From India, Hazaribagh
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Dear Mr. Manjunath,
Though it is not mandatory on the contractor's part now (since the number of employees is less than 20) to register with EPF, still, he can opt for EPF registration by contacting the enforcement officer of the EPF office concerned. The main reason is that in the future, he may increase the strength above 20 for your company OR even he can supply laborers to some other factory or company with or without your knowledge. It is better he opts for EPF as nowadays it has become a quick process to do so.
At any instance, do not pay your contractor's EPF under your establishment code, which will put you in trouble later if, suppose, he starts supplying laborers to some other companies too.
Regards,
Vijay...
From India, Madras
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Though it is not mandatory on the contractor's part now (since the number of employees is less than 20) to register with EPF, still, he can opt for EPF registration by contacting the enforcement officer of the EPF office concerned. The main reason is that in the future, he may increase the strength above 20 for your company OR even he can supply laborers to some other factory or company with or without your knowledge. It is better he opts for EPF as nowadays it has become a quick process to do so.
At any instance, do not pay your contractor's EPF under your establishment code, which will put you in trouble later if, suppose, he starts supplying laborers to some other companies too.
Regards,
Vijay...
From India, Madras
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Dear,
If any contractor provides manpower for your establishment, said contractor does not have an ESI & PF Code No., but he provides service at your establishment. Every principal employer has a duty to check his Statutory Compliance and fulfill it.
At this stage, you should deduct both the employee and employer's share of contributions and deposit them using your code No.
Thanks & Regards,
M A Zinna
Management Consultant (HR)
Mail ID: mazinna2002@yahoo.com
Mobile No. 9999170142
From India, New Delhi
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If any contractor provides manpower for your establishment, said contractor does not have an ESI & PF Code No., but he provides service at your establishment. Every principal employer has a duty to check his Statutory Compliance and fulfill it.
At this stage, you should deduct both the employee and employer's share of contributions and deposit them using your code No.
Thanks & Regards,
M A Zinna
Management Consultant (HR)
Mail ID: mazinna2002@yahoo.com
Mobile No. 9999170142
From India, New Delhi
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02-Form-II-Rule 18 (1)-Certificate of Registration to Principal Employer.pdf