Can a Principal Employer Submit the PF & ESI Challans on his own code for his contractor if yes then what is the procedure & what are the liabilities arise upon Principal Employer.
From India, Ghaziabad
1From India, Ghaziabad
Yes, the principal employer can enroll the employees engaged through the contractor under his registration if the contractor does not possess separate ESI/EPF registration of his own. Procedure remains the same. There is no consequence so long as the contract is genuine and the labours are engaged for work which is not related to the core activities of the principal employer. Certainly, if the labours are engaged in perennial activities or if the contract itself is sham, there is risk even if the labours are covered under the contractor's registration.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear Dhrj Shuka,
I agree with Madhu TK,as a principal employer,you have all the right to deposite the PF and ESI contribution of contarctor employees wroking at your palce.
I would like to add that,you need to ensure that you have registered the contractor in FORM-1 even he has less than 20 contract labour working with him.Please also ensure that you get a letter and an affidavit from contractor declaring that he does not have PF and ESI code no and wants to utilise yours to meet compliances.You shuld have seprate challan from contarctor for his employees and his cheque should be used for remittance.
At no point of time it should appear that you as employer is supervising their activity. It should only appear you as a facilitator to the contarctor for compliance purpose.
Thanks
Mritunjay Nath Sahu
GM(HR)
From India, Vadodara
I agree with Madhu TK,as a principal employer,you have all the right to deposite the PF and ESI contribution of contarctor employees wroking at your palce.
I would like to add that,you need to ensure that you have registered the contractor in FORM-1 even he has less than 20 contract labour working with him.Please also ensure that you get a letter and an affidavit from contractor declaring that he does not have PF and ESI code no and wants to utilise yours to meet compliances.You shuld have seprate challan from contarctor for his employees and his cheque should be used for remittance.
At no point of time it should appear that you as employer is supervising their activity. It should only appear you as a facilitator to the contarctor for compliance purpose.
Thanks
Mritunjay Nath Sahu
GM(HR)
From India, Vadodara
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THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970.doc
The Contract Labour (Regulation And Abolition) Haryana Amendment Act, 2016.pdf