Dear all,
I have another Query. if i will add these workers on the payroll temparary, do i have to pay them PF,ESIC,Gratuity etc?......And after 3-4 months if i will give them break, am i responsible to pay them all these contribution?(as some part of contry will get cut from these workers payment also).....if sombady claim all this contrybution shall i have to be responsible to pay them?
From India, Pune
13I have another Query. if i will add these workers on the payroll temparary, do i have to pay them PF,ESIC,Gratuity etc?......And after 3-4 months if i will give them break, am i responsible to pay them all these contribution?(as some part of contry will get cut from these workers payment also).....if sombady claim all this contrybution shall i have to be responsible to pay them?
From India, Pune
Hi,
If it is on Fixed term contract then the Company is responsible. If there is contact then contractor is responsible for payment and the Company needs to take adequate care that the contractor has made payment of stat dues.
Under Contract labour law, firstly contractor is responsibe for payment of stat dues and if the contractor doesnt pay then Principal is responsible., which mean for the contractor doesnt comply then the Company will be liable for payments.
Warm Regards,
Ca Vikas Goel
From India, Mumbai
If it is on Fixed term contract then the Company is responsible. If there is contact then contractor is responsible for payment and the Company needs to take adequate care that the contractor has made payment of stat dues.
Under Contract labour law, firstly contractor is responsibe for payment of stat dues and if the contractor doesnt pay then Principal is responsible., which mean for the contractor doesnt comply then the Company will be liable for payments.
Warm Regards,
Ca Vikas Goel
From India, Mumbai
Dear Vikas,
Thanks for your clarification. But, it seems the information provided by the poser of the problem was quite inadequate, from which a clear inference can well be made that some fictitious recruitment has been asked to be shown as a malpractice by the management just to siphon out funds of the company for illegal purposes. Had that not been the situation, the author of the thread could not have any cause of worry on her part. You would like to appreciate that there is much difference in the acts of showing and making actual recruitment of temporary staff. What I presume that she had the fear in her mind of showing some artificial staff temporarily without making any recruitment for those positions.
To be frank, I have seen in some companies/corporations the management adopts such type of tactics, either to illegally fill their own coffers or to grease the palm of the auditors, when auditors' compensation is either inadequate, or is desired much more than the approved one, or even to evade tax to show some fictitious profits or to negate some loss in loss making companies. I have also seen, the management adopts such tactics by employing auditors' own articles or the audit clerks or kith and kin by showing having engaged through some other associate audit companies to assist and justify the needs of the auditors to avoid any complex and odd situation likely to arise and to avoid facing the ire of the shareholders, if anything untoward appears in the audit report.
Sorry for my frank discussion. Hope, being a CA, you would also be aware of such type of situations and would not mind for my discussion on the issue.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi
From India, Delhi
Thanks for your clarification. But, it seems the information provided by the poser of the problem was quite inadequate, from which a clear inference can well be made that some fictitious recruitment has been asked to be shown as a malpractice by the management just to siphon out funds of the company for illegal purposes. Had that not been the situation, the author of the thread could not have any cause of worry on her part. You would like to appreciate that there is much difference in the acts of showing and making actual recruitment of temporary staff. What I presume that she had the fear in her mind of showing some artificial staff temporarily without making any recruitment for those positions.
To be frank, I have seen in some companies/corporations the management adopts such type of tactics, either to illegally fill their own coffers or to grease the palm of the auditors, when auditors' compensation is either inadequate, or is desired much more than the approved one, or even to evade tax to show some fictitious profits or to negate some loss in loss making companies. I have also seen, the management adopts such tactics by employing auditors' own articles or the audit clerks or kith and kin by showing having engaged through some other associate audit companies to assist and justify the needs of the auditors to avoid any complex and odd situation likely to arise and to avoid facing the ire of the shareholders, if anything untoward appears in the audit report.
Sorry for my frank discussion. Hope, being a CA, you would also be aware of such type of situations and would not mind for my discussion on the issue.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi
From India, Delhi
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