Factory Act Compliance and Labor Contractor Management
We are registered under the Factory Act and have PF and ESIC registration. We employ four labor supplier contractors at the Palghar food processing factory. We pay salaries according to the Minimum Wages Act, deducting PF, ESIC, MWLB, PT, etc., as per the prescribed guidelines under applicable law.
Recently, we appointed a new CA who advised us, "Why are you paying such a significant amount under PF, ESIC, MWLB, etc.? It would be better if you appoint each person as an individual contractor to save a substantial amount."
Considering Individual Contractor Appointments
Is it possible to appoint each unskilled and skilled worker as a contractor? If yes, how can this be implemented? What would be the impact under PF, ESIC, GST, and IT law?
Regards
From India, Mumbai
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We are registered under the Factory Act and have PF and ESIC registration. We employ four labor supplier contractors at the Palghar food processing factory. We pay salaries according to the Minimum Wages Act, deducting PF, ESIC, MWLB, PT, etc., as per the prescribed guidelines under applicable law.
Recently, we appointed a new CA who advised us, "Why are you paying such a significant amount under PF, ESIC, MWLB, etc.? It would be better if you appoint each person as an individual contractor to save a substantial amount."
Considering Individual Contractor Appointments
Is it possible to appoint each unskilled and skilled worker as a contractor? If yes, how can this be implemented? What would be the impact under PF, ESIC, GST, and IT law?
Regards
From India, Mumbai
Acknowledge(0)Amend(0)
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