PF Deduction for Irregular Workers
Some companies engage small contractors for piece-rate work or job work, and these contractors have laborers for short periods or days, which means irregular workers. In this context, is PF deduction necessary by the contractor or principal employer?
Valuable answer expected.
Regards,
T. S. Prasad
From India, Mumbai
Some companies engage small contractors for piece-rate work or job work, and these contractors have laborers for short periods or days, which means irregular workers. In this context, is PF deduction necessary by the contractor or principal employer?
Valuable answer expected.
Regards,
T. S. Prasad
From India, Mumbai
PF Applicability for Irregular and Part-Time Workers
Now, PF is applicable for irregular workers and even for part-time workers. Your contract is responsible for the deposit of the contributions made by employees and the employer to the PF office, but you are accountable and liable for this. You need to inspect for the smooth functioning, or else you will be under a trap.
Regards
From India, Bhubaneswar
Now, PF is applicable for irregular workers and even for part-time workers. Your contract is responsible for the deposit of the contributions made by employees and the employer to the PF office, but you are accountable and liable for this. You need to inspect for the smooth functioning, or else you will be under a trap.
Regards
From India, Bhubaneswar
PF Deduction for Irregular Workers
Irregular workers are also eligible for PF deduction. If the number of employees under a contractor's name is less than 20, he is exempted. However, if there are more than 20 employees, he is covered under the PF Act. In that case, he should deduct from their employees' salaries and follow the rules. Mainly, he is responsible for maintaining all statutory requirements. However, if he violates the rules, the principal employer is liable. Therefore, the principal employer should conduct regular audits to ensure the contractor is following all statutory norms and enforce compliance. If the contractor is unable to fulfill the requirements, then consider changing the contractor.
Regards,
Manoz
"HR" - "Highly Responsible"
From India, Hyderabad
Irregular workers are also eligible for PF deduction. If the number of employees under a contractor's name is less than 20, he is exempted. However, if there are more than 20 employees, he is covered under the PF Act. In that case, he should deduct from their employees' salaries and follow the rules. Mainly, he is responsible for maintaining all statutory requirements. However, if he violates the rules, the principal employer is liable. Therefore, the principal employer should conduct regular audits to ensure the contractor is following all statutory norms and enforce compliance. If the contractor is unable to fulfill the requirements, then consider changing the contractor.
Regards,
Manoz
"HR" - "Highly Responsible"
From India, Hyderabad
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