Dear HR Gurus,

I would like to request information, a scanned copy, or a soft copy of the rule that states the responsibility of the principal employer for the contribution of PF amount if the contractor fails to do so. I am aware that as per the Minimum Wages Act, it is the prime responsibility of the principal employer to provide CL salary and deduct it from the contractor's payment. However, I seek clarification regarding PF and legal compliance issues.

Regards,
Girish Musale
8983798799

From Spain
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Dear Girish Musale,

Whether the principal employer will be liable for the payment of contribution in regard to the employees engaged by a contractor?

The workers employed through a contractor are the 'employees' under the E.P.F. Act, and the principal employer is responsible for the contribution of provident fund in regard to such employees. The employees engaged by the contractor in connection with the work of the principal employer will be employees as defined under the E.P.F. and Miscellaneous Provisions Act.

References case laws:

Malwa Vanaspati and Chemical Co. Ltd. vs. Regional Provident Fund Commissioner, Indore and others, 1976-1 LLN 148 (M.P.HC); 1976 Lab. LJ 299

G.V.V. Swamy vs. Regional Provident Fund Commissioner and another, 1987 Lab. IC 719; 1987 (I) LLN 94; 1986 Andh. LT 653.

Source: [The Employees' Provident Funds And Miscellaneous Provisions Act, 1952: EXPECTS CLARIFICATIONS WITH CASE LAWS REFERENCE]

KVJ Raghunath
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From India, Vijayawada
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