Date:01.10.09
Dear all,
In our unit, a contractor supply 9 nos. worker daily.then PF and ESIC liabliety should not be attracted, because contractor is not suppling more than 20 and 10 nos in a single day respectivali.
But in contrast , our Labour consultant guided us that contractor should pay the PF AND ESIC liablity of 9 person,Factory condition deemed to applicable on contractor.,even supply of one person in single day.
In case, Contractor failed to fullfill the liablity of PF/ESIC then, ultimatly responciblity comes on head principle Employer.
Please Clearify What is the views of seniors.?
Thanks
(Anil Jangid)
From India, Vadodara
2Dear all,
In our unit, a contractor supply 9 nos. worker daily.then PF and ESIC liabliety should not be attracted, because contractor is not suppling more than 20 and 10 nos in a single day respectivali.
But in contrast , our Labour consultant guided us that contractor should pay the PF AND ESIC liablity of 9 person,Factory condition deemed to applicable on contractor.,even supply of one person in single day.
In case, Contractor failed to fullfill the liablity of PF/ESIC then, ultimatly responciblity comes on head principle Employer.
Please Clearify What is the views of seniors.?
Thanks
(Anil Jangid)
From India, Vadodara
Hi Anil,
It is immaterial whether the contractor is supplying 9 or 20 but if your company has a PF code and remitting PF/ESI contributions for other employees then you have to pay for the contractor's employees as well. The same contractor might supply workers to other companies and the total number of workers supplied by the contractor a day may exceed 20 workers and that brings him under the perview of PF/ ESI and as principal employer it is your resposibility to ensure compliance. The best way according to me is that you engage those contractors who have their own PF code. While entering into an agreement with the contrctor for supplying workers you must mention that the contractor should provide documentary evidence towards having a valid PF code in his company's name from RPFc and also must submit a xerox copy of challan every month along with his bill evidencing payment of PF / ESI to the respective authorities. Payment will be withheld if statutory payments are not made within the due dates. You must ensure your company's interest and avoid getting show cause notice from the authorities for non compliance.
From India, Calcutta
It is immaterial whether the contractor is supplying 9 or 20 but if your company has a PF code and remitting PF/ESI contributions for other employees then you have to pay for the contractor's employees as well. The same contractor might supply workers to other companies and the total number of workers supplied by the contractor a day may exceed 20 workers and that brings him under the perview of PF/ ESI and as principal employer it is your resposibility to ensure compliance. The best way according to me is that you engage those contractors who have their own PF code. While entering into an agreement with the contrctor for supplying workers you must mention that the contractor should provide documentary evidence towards having a valid PF code in his company's name from RPFc and also must submit a xerox copy of challan every month along with his bill evidencing payment of PF / ESI to the respective authorities. Payment will be withheld if statutory payments are not made within the due dates. You must ensure your company's interest and avoid getting show cause notice from the authorities for non compliance.
From India, Calcutta
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