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Contract Labours For Site Civil Works - CiteHR

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SulakshanaD
I am working with an engineering firm which is into Water Treatment, Sewage Treatment and Water Supply projects for Civil Works which are going at various locations in India and are employing huge no. of contract labours for the work to be done through a local contractor or a contractor.
These labourers get paid on weekly basis or fortnightly in Cash. We wish to do compliances under PF and ESIC for these workers through a Contracting Agency appointed by us but we are facing following problems.
Most of the workers would work only for a duration for 3 months or less. how would the workers get benefit for PF and ESIC
These workers also usually take advance due to some reason or the others.
If we add the amount to the contract labour bill would the workers get benefit from the same.
Looking forward for a suitable response
Regards
Sulakshana

From India, Dewas
Madhu.T.K
3891

As per statute workers engaged for even one day are to be covered by EPF and ESI. Therefore, the contractors can not escape from his liability (or rather the liability of you as principal employer) from contributing towards these social security schemes. However, he can exclude employees engaged at project/ construction sites from coverage of ESI because as per ESIC notification employees engaged at construction sites are excluded from coverage. No such exemption is, however, available for EPF. If the workers are not prepared and at the same time their demand is very high you will have to bear the entire cost on ESI and EPF.
Regards,
Madhu.T.K

From India, Kannur
SulakshanaD
Dear Mr. Madhu,
Thanks for your response and the guidance which shall be very helpful also please let me know that under which clause is the exemption provided under ESIC and should this labours be covered under Workmen's Compensation.
Regards
Sulakshana

From India, Dewas
Madhu.T.K
3891

There is a notification in this respect which I had posted in citehr itself, perhaps long months back. You can search the same by putting these words, " ESI on construction workers"
In respect of any employee not covered by ESI schemes the employer is liable to compensate following the provisions of Workmen's Compensation Act. The same applies to construction workers as well. Therefore, it is advised to take insurance in respect of all employees who engage at your sites.
Regards,
Madhu.T.K

From India, Kannur
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