We are an educational institution. Sometimes we hire labor for 3-4 days, sometimes with a contractor and sometimes without a contractor. My query is, should we put them on ESI? Most of the contractors are not registered under ESI for their laborers, and all the laborers that come here do not know about the ESI. So what exactly should we be doing? Can we not have any labor cost bill that is not under ESI, as our institution is covered under the ESI for the staff that earns below 15k? Request someone to please reply to this at the earliest.
From India, Bangalore
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1From India, Bangalore
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ESI Applicability for Workers
ESI is applicable to every worker, whether they are permanent or contractual. The duty of depositing the ESI fund primarily lies with the Principal Employer, so one cannot escape liability by claiming that contractors are not registered under the ESI Act. I am not singling you out, but suggesting that you follow the appropriate law. Therefore, you must deduct the ESI amount. During inspections, the ESI department highlights labor and maintenance costs to calculate the ESI contribution, which can result in heavy damages for the employer.
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ESI is applicable to every worker, whether they are permanent or contractual. The duty of depositing the ESI fund primarily lies with the Principal Employer, so one cannot escape liability by claiming that contractors are not registered under the ESI Act. I am not singling you out, but suggesting that you follow the appropriate law. Therefore, you must deduct the ESI amount. During inspections, the ESI department highlights labor and maintenance costs to calculate the ESI contribution, which can result in heavy damages for the employer.
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In case you are interested, please contact us so that we can arrange coverage for individual workers on the day of engagement itself and pay both the employee's and employer's contributions using our respective code numbers. We may also pay the wages as fixed and claim the amounts subsequently on a monthly basis. This approach will absolve you from the liability of payment for ESI contributions and also from all risks associated with the engagement of casual/contract workers.
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N. Nataraajhan, Sakthi Management Services
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From India, Bangalore
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N. Nataraajhan, Sakthi Management Services
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Bangalore
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Here, the people will be hired for 3 to 4 days, and they will be gone. After some time, some others or the same previous people come for such a short period. These are casual laborers having seasonal employment.
Is the employer bound to pay ESI contributions in the above situation? What about EPF contributions in the same scenario?
From India, Kolkata
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Is the employer bound to pay ESI contributions in the above situation? What about EPF contributions in the same scenario?
From India, Kolkata
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