Hi seniors,
Kindly advise if PF needs to be deducted from contract employees working in our factory. We have 14 contract employees working in the canteen and 50 drivers in contract buses. If there are fewer than 20 employees, should the contractor pay PF or ESI to their employees? Why are they neglected from these benefits?
Thank you.
From India,
Kindly advise if PF needs to be deducted from contract employees working in our factory. We have 14 contract employees working in the canteen and 50 drivers in contract buses. If there are fewer than 20 employees, should the contractor pay PF or ESI to their employees? Why are they neglected from these benefits?
Thank you.
From India,
Clarification on Unit Type and Legal Coverage
1. In your remarks, you mentioned the unit as a "factory," and you also mentioned 14 contract employees working in the canteen and 50 drivers on contract buses. Could you kindly specify what type of unit you are working in, i.e., whether it is a factory or an establishment?
2. Since coverage under the Acts, as mentioned by you, depends on the nature of the establishment as well as the number of persons working therein, it would be beneficial to study the necessary material regarding coverage and registration under EPF & ESI laws. You can download this information from the websites of the relevant departments. If, after reviewing such material, you have any doubts, you can refer to the same with complete details of such points for the consideration of seniors.
3. Regarding the ESI Act, 1948, please confirm whether the area where your establishment is located is an implemented area. If any employees, including contractor employees, are excluded from such benefits or not covered under the said Acts, you can request this information from the concerned departments/officers of your unit. I believe this forum cannot offer any comments on this matter.
Regards
From India, Noida
1. In your remarks, you mentioned the unit as a "factory," and you also mentioned 14 contract employees working in the canteen and 50 drivers on contract buses. Could you kindly specify what type of unit you are working in, i.e., whether it is a factory or an establishment?
2. Since coverage under the Acts, as mentioned by you, depends on the nature of the establishment as well as the number of persons working therein, it would be beneficial to study the necessary material regarding coverage and registration under EPF & ESI laws. You can download this information from the websites of the relevant departments. If, after reviewing such material, you have any doubts, you can refer to the same with complete details of such points for the consideration of seniors.
3. Regarding the ESI Act, 1948, please confirm whether the area where your establishment is located is an implemented area. If any employees, including contractor employees, are excluded from such benefits or not covered under the said Acts, you can request this information from the concerned departments/officers of your unit. I believe this forum cannot offer any comments on this matter.
Regards
From India, Noida
All contract workers working in a factory are to be covered under PF, irrespective of whether the immediate employer (Contractor) has 20 or more employees. If the contractor does not have a PF code, then the principal employer (factory) needs to pay them on its own code. There is a separate section in the PF portal for that purpose.
For ESIC, Harsh has already given you the process to follow.
From India, Mumbai
For ESIC, Harsh has already given you the process to follow.
From India, Mumbai
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