If a truck brings goods to my premises and my laborers unload those goods from the truck (who are my daily wage laborers), am I bound to count the truck driver as my employee and get myself registered for PF? (Right now I am registered in PF). Please tell me what to do.
From India, Mysore
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From India, Mysore
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Transport Contracts and PF Coverage
The transport contracts are 'Contract for Service' and hence their PF coverage is not the liability of the principal employer. The transport contractor is not paid wages but given a composite rate based on the quantum of work. The transport contractor himself may be covered under the PF Act 1952 if otherwise eligible.
From India, Mumbai
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1593The transport contracts are 'Contract for Service' and hence their PF coverage is not the liability of the principal employer. The transport contractor is not paid wages but given a composite rate based on the quantum of work. The transport contractor himself may be covered under the PF Act 1952 if otherwise eligible.
From India, Mumbai
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I will disagree with KK on the reasoning, though his final answer is correct.
Contract labor laws and liability for PF and ESIC
Under contract labor laws, there is no distinction between a contract for labor supply and a contract for services. Even if someone is offering you a lump sum or a piece-rate contract, you are still liable to pay the PF and ESIC (or ensure it is paid by the contractor).
Exemption for vehicle drivers
The only reason it does not apply to the driver of the vehicle is that he is not working on your premises. He is working outside. His presence on your premises is only incidental to the main activity.
The matter would be different if he was dedicated to your company, doing exclusively your work and on your premises for most of the workday on a regular basis. In such a case, you may be liable (depends on the circumstances).
From India, Mumbai
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Contract labor laws and liability for PF and ESIC
Under contract labor laws, there is no distinction between a contract for labor supply and a contract for services. Even if someone is offering you a lump sum or a piece-rate contract, you are still liable to pay the PF and ESIC (or ensure it is paid by the contractor).
Exemption for vehicle drivers
The only reason it does not apply to the driver of the vehicle is that he is not working on your premises. He is working outside. His presence on your premises is only incidental to the main activity.
The matter would be different if he was dedicated to your company, doing exclusively your work and on your premises for most of the workday on a regular basis. In such a case, you may be liable (depends on the circumstances).
From India, Mumbai
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