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
Acknowledge(0)
Amend(0)
Please provide your input on settling his service charges despite not having the EPF code.
Thanks & Regards,
Manjunath MH
From India, Bangalore
Acknowledge(0)Amend(0)
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.
Ensuring PF Compliance
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.
Regards
From India, Mumbai
Acknowledge(2)
Amend(0)
2584Ensuring PF Compliance
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.
Regards
From India, Mumbai
Acknowledge(2)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Liability Under EPF
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.
Regards,
Lalit Thakkar
From India, Surat
Acknowledge(0)Amend(0)
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.
Regards,
Lalit Thakkar
From India, Surat
Acknowledge(0)Amend(0)
I fully agree with the views offered by Mr. Thakkar. As an HR Manager, you must ensure that no contractor is enlisted and engaged for any work without PF & Code Registration in the future. To settle the contractor's bill, I suggest you deduct the exact PF amount payable from the contractor's bill 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
[Phone Number Removed For Privacy Reasons]
From India, Calcutta
Acknowledge(1)Amend(0)
Regards,
Sibabrata Majumdar
Management Consultant - Legal & HR
Kolkata
[Phone Number Removed For Privacy Reasons]
From India, Calcutta
Acknowledge(1)Amend(0)
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
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Madras
Acknowledge(0)Amend(0)
As a principal employer, you are liable to comply with the provisions under the EPF Act.
Regards,
Swaminathan
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Madras
Acknowledge(0)Amend(0)
Though it is not mandatory for the contractor now (since the number of employees is less than 20) to register with EPF, he can still opt for EPF registration by contacting the enforcement officer of the concerned EPF office. The main reason is that in the future, he may increase the strength above 20 for your company, or he might supply laborers to another factory or company with or without your knowledge. It is better for him to opt for EPF as it has become a quick process nowadays.
At any instance, do not pay your contractor's EPF under your establishment code, which will put you in trouble later if he starts supplying laborers to other companies too.
Regards,
Vijay
From India, Madras
Acknowledge(1)Amend(0)
At any instance, do not pay your contractor's EPF under your establishment code, which will put you in trouble later if he starts supplying laborers to other companies too.
Regards,
Vijay
From India, Madras
Acknowledge(1)Amend(0)
If any contractor provides manpower for your establishment and does not have an ESI & PF Code No., but 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)
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]
From India, New Delhi
Acknowledge(2)
Amend(0)
Thanks & Regards,
M A Zinna
Management Consultant (HR)
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]
From India, New Delhi
Acknowledge(2)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Principal employer liable if contractor fails to pay wages to workers Delhi High Court Judgement.pdf