Hi all,
I have one question: How can we hire employees without paying ESI and PF if their salary is ₹17,000 per month? My owner suggests that we make someone a contractor and show all labor under his name. Does the new contractor have to pay ESI and PF then?
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I have one question: How can we hire employees without paying ESI and PF if their salary is ₹17,000 per month? My owner suggests that we make someone a contractor and show all labor under his name. Does the new contractor have to pay ESI and PF then?
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Engaging Workers Through a Contractor
When you engage workers through a contractor, the contractor is responsible for compliance. If the contractor does not follow the law, the principal employer, i.e., your employer, should assume responsibility. Then why should you make a contract and place the employees under him?
Moreover, you cannot engage workers through a contractor for operations of a perennial nature and on core activities. Furthermore, when you place a contractor in between just to avoid payment of ESI and PF, the contract will become a sham contract.
From India, Kannur
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4526When you engage workers through a contractor, the contractor is responsible for compliance. If the contractor does not follow the law, the principal employer, i.e., your employer, should assume responsibility. Then why should you make a contract and place the employees under him?
Moreover, you cannot engage workers through a contractor for operations of a perennial nature and on core activities. Furthermore, when you place a contractor in between just to avoid payment of ESI and PF, the contract will become a sham contract.
From India, Kannur
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PF ESIC.xls
ESIC Gen Amdmt Regulations 2012.pdf