Dear seniors,
My question is, if I am required to construct my new building and I hire a contractor for the complete construction of my building, who then hires labor for the construction work, is it necessary to deduct PF from the labor or not? However, he does deduct ESIC.
Kindly provide your opinion.
Regards,
Ravi Khandelwal
From India, Bhopal
Acknowledge(0)
Amend(0)
3My question is, if I am required to construct my new building and I hire a contractor for the complete construction of my building, who then hires labor for the construction work, is it necessary to deduct PF from the labor or not? However, he does deduct ESIC.
Kindly provide your opinion.
Regards,
Ravi Khandelwal
From India, Bhopal
Acknowledge(0)Amend(0)
Dear Ravi,
Please clarify whether your establishment is already covered under EPF Act. What is this new building? Are you engaging contract labor in connection with the work of your establishment? Before awarding a contract to your contractor, you have to specify the statutory compliance required from the contractor.
From India, New Delhi
Acknowledge(0)Amend(0)
Please clarify whether your establishment is already covered under EPF Act. What is this new building? Are you engaging contract labor in connection with the work of your establishment? Before awarding a contract to your contractor, you have to specify the statutory compliance required from the contractor.
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Mr. Shrinath,
This is my new organization, so till present I didn't take EPF registration. The new building will be used in the future for a manufacturing unit. Yes, I am engaging contract labor through a contractor to build the new building.
Kindly provide your feedback.
Regards,
Ravi Khandelwal
From India, Bhopal
Acknowledge(0)Amend(0)
This is my new organization, so till present I didn't take EPF registration. The new building will be used in the future for a manufacturing unit. Yes, I am engaging contract labor through a contractor to build the new building.
Kindly provide your feedback.
Regards,
Ravi Khandelwal
From India, Bhopal
Acknowledge(0)Amend(0)
Dear Mr. Ravi, From your reply, it is confirmed that you have engaged a contractor to construct a building. Please furnish details of the contractor—whether he is covered under the EPF/ESI Act. If he is covered under the relevant acts, he has to comply with the same. While awarding a labor contract, you as the principal employer have to verify the labor contractor's statutory registration and compliance.
Why is the contractor complying with the ESI Act and not complying with the EPF Act?
You have all the records of the labor contractor. Please verify and revert with your specific query.
From India, New Delhi
Acknowledge(0)Amend(0)
Why is the contractor complying with the ESI Act and not complying with the EPF Act?
You have all the records of the labor contractor. Please verify and revert with your specific query.
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Ravi Khandelwal ji, You are the Principal Employer of a construction site. You are a developer or builder involved in business.
EPFO and ESIC Registration Requirements
If you are employing more than 20 persons, including contract laborers, then you have to register with EPFO and comply accordingly. If you are employing more than 10 persons, including contract laborers, then you have to register with ESIC and comply accordingly.
PT and MP Labour Welfare Fund Compliance
Even if you have a single employee, you need to obtain a PT number and comply accordingly. Similarly, even with a single employee, you need to obtain an MP Labour Welfare Fund number and comply accordingly.
CLRA Registration Requirements
If you are executing any work in any place with the help of 20 or more contract laborers, then you have to obtain registration under CLRA. Your contractor is required to obtain a license if they employ 20 or more laborers in that specific place.
BOCW Act Compliance
If you employ 10 or more construction workers at any place, you need to register such a place under the BOCW Act. Additionally, you are required to register your construction workers as beneficiaries under the BOCW Act and pay a cess at 1% of the construction cost.
From India, Mumbai
Acknowledge(0)Amend(0)
EPFO and ESIC Registration Requirements
If you are employing more than 20 persons, including contract laborers, then you have to register with EPFO and comply accordingly. If you are employing more than 10 persons, including contract laborers, then you have to register with ESIC and comply accordingly.
PT and MP Labour Welfare Fund Compliance
Even if you have a single employee, you need to obtain a PT number and comply accordingly. Similarly, even with a single employee, you need to obtain an MP Labour Welfare Fund number and comply accordingly.
CLRA Registration Requirements
If you are executing any work in any place with the help of 20 or more contract laborers, then you have to obtain registration under CLRA. Your contractor is required to obtain a license if they employ 20 or more laborers in that specific place.
BOCW Act Compliance
If you employ 10 or more construction workers at any place, you need to register such a place under the BOCW Act. Additionally, you are required to register your construction workers as beneficiaries under the BOCW Act and pay a cess at 1% of the construction cost.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf
Statutory Compliance.zip