ESIC and EPF Registration for Contractors
We are ISPs (Internet Service Providers) contractors for maintenance work, having only 3 employees as per the agreement with the principal employer. They have some other contractors as well, and each individual contractor has fewer than 10 employees. We are not working inside the ISP premises but at their customers' premises in various locations.
So, my questions are:
1. Do we need to register and pay ESIC and EPF?
2. If yes, then why?
3. If no, then please provide me with some solid proof to show to the principal employer.
4. Are we required to maintain a wages register?
Regards
From India, Ahmedabad
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We are ISPs (Internet Service Providers) contractors for maintenance work, having only 3 employees as per the agreement with the principal employer. They have some other contractors as well, and each individual contractor has fewer than 10 employees. We are not working inside the ISP premises but at their customers' premises in various locations.
So, my questions are:
1. Do we need to register and pay ESIC and EPF?
2. If yes, then why?
3. If no, then please provide me with some solid proof to show to the principal employer.
4. Are we required to maintain a wages register?
Regards
From India, Ahmedabad
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Applicability of PF as per The Employee's Provident Funds and Miscellaneous Provisions Act, 1952
An Act to provide for the institution of provident funds, pension funds, and deposit-linked insurance funds for employees in factories and other establishments.
Be it enacted by Parliament as follows:
1. Short title, extent, and application
(1) This Act may be called the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Subject to the provisions contained in section 16, it applies:
- To every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed.
Applicability of ESIC Act
APPLICABILITY
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20* or more persons.
Further, under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
Hence, PF and ESI are not applicable, and regarding the maintenance of the wage register, it is a must because you have to follow the minimum wage and have to prepare Wage & Muster Roll.
Regards
From India, Ranchi
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78An Act to provide for the institution of provident funds, pension funds, and deposit-linked insurance funds for employees in factories and other establishments.
Be it enacted by Parliament as follows:
1. Short title, extent, and application
(1) This Act may be called the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Subject to the provisions contained in section 16, it applies:
- To every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed.
Applicability of ESIC Act
APPLICABILITY
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20* or more persons.
Further, under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
Hence, PF and ESI are not applicable, and regarding the maintenance of the wage register, it is a must because you have to follow the minimum wage and have to prepare Wage & Muster Roll.
Regards
From India, Ranchi
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Since you are working for and on the premises of such an establishment (i.e., PE) which is covered under PF and ESIS, your employees who are working for and on the premises of the covered establishment need to be covered under PF and ESIS irrespective of the total number of employees you have and whether you are covered under PF and ESIS or not. You are requested to read the definition of an employee under both the enactments. Please note that whatever laws are applicable to PE are also applicable to you for the employees engaged in work under PE.
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From India, Mumbai
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From India, Mumbai
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Thank you for the replies. My state is Gujarat, and the city is Ahmedabad. Can the principal employer ask for the wages register we maintain? I want a little bit more knowledge and discussion regarding this topic. Please help me, members. Thanks in advance.
From India, Ahmedabad
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From India, Ahmedabad
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The answer to your question is: Yes, the Principal Employer (PE) can ask for a wage register copy from you. In fact, you are supposed to make the payment of wages in the presence of a representative of the PE and obtain their signature in the wage register for having done it.
From India, Mumbai
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From India, Mumbai
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