We are having a contractor who has deployed 11 employees in our office as per a contract.
In the month of February, which was the last month as per the contract, 2 employees left the job after working for 6-7 days. For the remaining period, he has not deployed any permanent staff and has completed the remaining work by deploying 3 other employees. These three employees worked for 14, 12, and 14 days respectively in place of the 2 engineers who left. The contractor has not submitted ESIC for any of these 3 employees. Upon enquiring, he is saying that since it was the last month of the contract, he has not deployed any permanent staff and has completed the work with his own company’s employees. He is saying that since these three employees are earning wages more than 21,000, they are exempted from ESIC.
My question is, shall I consider this argument of the contractor that these employees are exempted from ESIC because, as per our contract, we are paying wages which are less than 21,000 and require ESI to be deposited?
From India, New Delhi
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In the month of February, which was the last month as per the contract, 2 employees left the job after working for 6-7 days. For the remaining period, he has not deployed any permanent staff and has completed the remaining work by deploying 3 other employees. These three employees worked for 14, 12, and 14 days respectively in place of the 2 engineers who left. The contractor has not submitted ESIC for any of these 3 employees. Upon enquiring, he is saying that since it was the last month of the contract, he has not deployed any permanent staff and has completed the work with his own company’s employees. He is saying that since these three employees are earning wages more than 21,000, they are exempted from ESIC.
My question is, shall I consider this argument of the contractor that these employees are exempted from ESIC because, as per our contract, we are paying wages which are less than 21,000 and require ESI to be deposited?
From India, New Delhi
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Please carefully read the Provisions of the Contract Labour (Regulation & Abolition) Act, and you shall get your answer. Furthermore, remember that if your contractor does not comply with legal provisions, you, the principal employer, shall be liable to compensate for any misrepresentation, non-compliance, or violation of provisions. Also, once any contractor is covered by any act or liability, the liability does not cease or end when the number of contract laborers decreases during the same contractual period.
Regards, Kritarth Team
From India, Delhi
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206Regards, Kritarth Team
From India, Delhi
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Contract Labour Act.zip
SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc