Hi All, I have one question: How can we hire employees without paying ESI and PF if their salary is 17,000 pm? My owner suggests that we make someone a contractor and show all labour under his name. Does the new contractor have to pay ESI and PF, then?
Why not? When you engage workers through a contractor the contractor is responsible for compliances and if he does not follow the law, the principal employer, ie, your employer, should take it on his shoulder. Then why should you make a contract and then put the employees under him? Moreover, you cannot engage workers through a contractor on operations of perennial nature and on core activities. Moreover, when you place a contractor in between just to avoid payment of ESi and PF, the contract will be coem sham contract.
From India, Kannur
4193From India, Kannur
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