Understanding ESIC & PF Applicability for Contract Labor: Insights on Compliance & Exemptions - CiteHR

Dear Friend,

Our company wants to employ more than 40 people as contract labor. My question is whether ESIC and PF provisions are applicable or not. If yes, under which section are they mentioned?

Regards,
Narendra

From India, Mumbai
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For ESI Section 2(9) and PF Section 2(f), both provisions are applicable in the case of contractor labor. When depositing the ESI contribution, the state government may allot a separate code number for depositing the ESI contribution in its separate code. It is the prime responsibility of the principal employer to deposit the contributions as admissible under the above two acts in his own allotted code. For further clarification, contact 09774059742.

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I need urgent feedback here. We are an architectural/interior designing firm based in Mumbai and also execute interior projects on a turnkey basis. Our technical staff strength is 6, along with 2 partners. Are we eligible for ESIC deductions by our clients, especially when we subcontract the works to different vendors/subcontractors and do not have any labor under our payroll? Can we forward our subcontractor's PF number to avail exemption from these deductions? Our subcontractor is eligible for PF but not ESIC as he has less than 20 employees under his payroll too.

Your feedback here will be highly appreciated.

Kind regards,
Rohan Kowli
Managing Partner
K+A Urban Fourth

From India, Mumbai
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