Good Morning Everybody!! In case we hire employees whose salary shall be paid by a third party (say on the role of consultancy) which does not deduct ESIC for any of its employees, how should we ensure their safety as the company is liable to pay ESIC contributions for all employees irrespective of on-roll or off-roll?

1. How do we file ESIC for them as it would be our liability?
2. Do we need to file a separate challan for such outsourced employees from that of on-roll employees?

Soliciting advice.

Regards,
Hiral

From India, Ahmedabad
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Now, PF and ESI are mandatory for all companies if their total number of employees exceeds 20. You should insist that your outsourcing agency enrolls for PF and ESI or obtains an exemption certificate from the respective authorities. If they have not done so, you should be prepared to pay with penalties.

Regards,
Jayachander S

From India, Madras
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Dear Arnab, Thanks for sharing the same. I'll seek your expertise when required.

Mr. Jayachander S,

I am not concerned with the outsourcing agency having a registration code for PF & ESIC or not. My concern is that if I hire 5 employees from such an agency who do not have ESIC for the employees on their roll, the company is still liable to pay such an amount—then what is the process for that?

Regards,
Hiral

From India, Ahmedabad
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Dear Hiral, ESIC is applicable to all staff whose salary is below Rs. 15,000, whether they are permanent, contract, or outsourced. If the outsourced agency does not have an ESIC Code number, you cannot escape from the liability. The payment should be made by the consulting agency. If they do not have the Code number, you can make the payment and get it refunded.

Regards,
Hareesh

From India, Kochi
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Hi Hareesh, could you please clarify the following:

1. How do we file ESIC for them as it would be our liability?
2. Do we need to file a separate challan for such outsourced employees from that of on-roll employees?

Regards,
Hiral

From India, Ahmedabad
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