In one of the replies, it is mentioned that even if contractors do not have their own ESI and PF codes, the principal employer can deduct and deposit the contribution in his code.
How will P.E. ensure it is done? And what is to be done if contractors have codes?
How will P.E. ensure it is done? And what is to be done if contractors have codes?
If the contractors have separate codes, they can remit the ESI and EPF in respect of their workmen under their respective codes itself. The Principal employer can collect a copy of the ECR/ Challan highlighting the names of workers that the concerned contractor has deployed in the plant of the Principal employer. But if the contractor has no ESI/ PF registration, then the Principal employer has to register the workers of the contractor under his registration and in the same portal where the direct employees of the Principal employer are available and then show the wages, contribution due from the employee and the contribution due by the employer and pay the same along with the direct employees. The principal employer then has to collect back the amount from the contractor by deduction from the amounts payable to the contractor.
Under the second case, the employees of the contractor will be under the rolls of the principal employer for all means, say, if an accident takes place, the principal employer should send accident report to ESIC, if any worker requires any advance from PF, he has to approve the request and so on. The workers will have the feeling that they are employees of the Principal employer only. This may create issues in future. Therefore, it is advisable that you should award contract only to those who has ESI and EPF registrations.
From India, Kannur
4193Under the second case, the employees of the contractor will be under the rolls of the principal employer for all means, say, if an accident takes place, the principal employer should send accident report to ESIC, if any worker requires any advance from PF, he has to approve the request and so on. The workers will have the feeling that they are employees of the Principal employer only. This may create issues in future. Therefore, it is advisable that you should award contract only to those who has ESI and EPF registrations.
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls