Hi!
I am working with an engineering firm which is into Water Treatment, Sewage Treatment and Water Supply projects related to Civil Works spread to India. We require large number of labours to do the construction of our site. These labours are appointed to a local contractor or a contractor.
We wish to do the legal compliances related to PF and ESIC but we are facing few problems.
These labours work for duration of 3 months or less and leave without informing.
These workers are paid wages on weekly basis by the contractor.
These workers at times also take advance due to some reason.
Please let me know
1) Can the workers get benefit of PF for 3 months worked?
2) If we put the amount as a certain % of the labour bill raised by the contractor then would still the benefit be available to the labours who have worked for long duration say 6 months or so.
Looking forward for the response towards the same.
From India, Dewas
I am working with an engineering firm which is into Water Treatment, Sewage Treatment and Water Supply projects related to Civil Works spread to India. We require large number of labours to do the construction of our site. These labours are appointed to a local contractor or a contractor.
We wish to do the legal compliances related to PF and ESIC but we are facing few problems.
These labours work for duration of 3 months or less and leave without informing.
These workers are paid wages on weekly basis by the contractor.
These workers at times also take advance due to some reason.
Please let me know
1) Can the workers get benefit of PF for 3 months worked?
2) If we put the amount as a certain % of the labour bill raised by the contractor then would still the benefit be available to the labours who have worked for long duration say 6 months or so.
Looking forward for the response towards the same.
From India, Dewas
for both of your question answer is yes, in both cases you need to extend ESI and PF benefit to employee whether contractual or permanant if qualifiy for the same.
In second case if you put some % as labour component than you need to deposit ESI and PF contribution on the same as per both Acts.
these are social welfare legislation you need to comply with the same irresptive of ur employees status.
As per ESI act the same is applicable to even daily wage employee, if the work have some connection with business of your establishment.More clarification searh forum or write specific question i will reply accordingly.
87In second case if you put some % as labour component than you need to deposit ESI and PF contribution on the same as per both Acts.
these are social welfare legislation you need to comply with the same irresptive of ur employees status.
As per ESI act the same is applicable to even daily wage employee, if the work have some connection with business of your establishment.More clarification searh forum or write specific question i will reply accordingly.
dear sulakshana,
beaig an HR person always deduct PF, ESI amount from the contractor bill and deposit it. else u will face problem in near future.
even though labour leave organisation after 3 month they can with draw there pf amount including employeer share by using pf with drawl form.
problems if u not deduct-
1. if u will not deduct any pf & esi any accident occur during work then problem start which will be a big one.
2. if any pf esi enforcement officer come to ur work place supprisingle u have to pay penalty.
so better deduct
From India, Angul
beaig an HR person always deduct PF, ESI amount from the contractor bill and deposit it. else u will face problem in near future.
even though labour leave organisation after 3 month they can with draw there pf amount including employeer share by using pf with drawl form.
problems if u not deduct-
1. if u will not deduct any pf & esi any accident occur during work then problem start which will be a big one.
2. if any pf esi enforcement officer come to ur work place supprisingle u have to pay penalty.
so better deduct
From India, Angul
Dear Sulkashana
PF has to be deducted from day one irrespective of whether labour gets benefit or not, its for there & organisation benefit to deduct PF. and for ESI its not applicable for green field projects you have to take workmen compensation for them.
From India, Bhopal
PF has to be deducted from day one irrespective of whether labour gets benefit or not, its for there & organisation benefit to deduct PF. and for ESI its not applicable for green field projects you have to take workmen compensation for them.
From India, Bhopal
Hi If you need any help (consultancy) in Karnataka contact us Ram K Navaratna HR Resonance Visit: hrresonance.googlepages.com
From India, Bangalore
From India, Bangalore
Sulakshana D,
REGARDING UR Qusetion No. 1
Ans : Yes , Any contract wokers deployed through any agency/ agent/ employer for any work , these workers will be given benefit of PF . If you are not deducting & not sharing pricipal employer contibution , you will be greater trouble in near future when concerned PF authorities will visit to your site ask for PF compliances under the said Act .
Q.2 ) Yes , you can do so ; Further it will have to confirm whether establishment/ area is covered under ESI Act or not ? If not , you have to take WC Policy for contract workers .
Hope , I have clarified ur points.
Thanks,
AK Sharma
From India, Pune
REGARDING UR Qusetion No. 1
Ans : Yes , Any contract wokers deployed through any agency/ agent/ employer for any work , these workers will be given benefit of PF . If you are not deducting & not sharing pricipal employer contibution , you will be greater trouble in near future when concerned PF authorities will visit to your site ask for PF compliances under the said Act .
Q.2 ) Yes , you can do so ; Further it will have to confirm whether establishment/ area is covered under ESI Act or not ? If not , you have to take WC Policy for contract workers .
Hope , I have clarified ur points.
Thanks,
AK Sharma
From India, Pune
Dear Member,
Its a practical problem specific to construction industry where labour turnover is high.
though as per Acts they are covered but in general they fail to avail these benefits.
One thing that you can do is to force cotractor to submit Challans of PF & Esi with the bill.(if work contract permit this system & if not try to incorporate this in work order)
Being principle employer you will be responsible finally but in such a way you share lot of responsibility with your contractor.
You must show at least "by and large" compliance during inspections(generaly Govt. Officer consider this). You must develop good liaison with Govt. officers to avoid inspection.You may manipulate some records according compliance if your management permit the same.
Regards
Vinod
From India, Pune
Its a practical problem specific to construction industry where labour turnover is high.
though as per Acts they are covered but in general they fail to avail these benefits.
One thing that you can do is to force cotractor to submit Challans of PF & Esi with the bill.(if work contract permit this system & if not try to incorporate this in work order)
Being principle employer you will be responsible finally but in such a way you share lot of responsibility with your contractor.
You must show at least "by and large" compliance during inspections(generaly Govt. Officer consider this). You must develop good liaison with Govt. officers to avoid inspection.You may manipulate some records according compliance if your management permit the same.
Regards
Vinod
From India, Pune
Dear All,
I'm also having the certain queries in regard to the same.
we are paying the fixed wages to our employee is 4500 p.m.(Basic 3500, HRA 1000, Conveyance - 500), also we are giving them daily expenses of Rs 100 to them.
In such case, how to calculate the Pf amount.
Regards,
Sandeep
From India, Pune
I'm also having the certain queries in regard to the same.
we are paying the fixed wages to our employee is 4500 p.m.(Basic 3500, HRA 1000, Conveyance - 500), also we are giving them daily expenses of Rs 100 to them.
In such case, how to calculate the Pf amount.
Regards,
Sandeep
From India, Pune
Dear All
I am also facing the same problem
I am from Hyderabad recently myself and near by companies got letter from
PF commissioner we need to pay the PF on minimum wage i.e on present minimum wage is Rs. 4030/-
we have the union and made the agreement for permenant workers we are paying the PF on 60% of the total wage
most of teh contractor workrs will not stay more than 3 months
pl suggest me
regads, Venu
I am also having
From India, Hyderabad
I am also facing the same problem
I am from Hyderabad recently myself and near by companies got letter from
PF commissioner we need to pay the PF on minimum wage i.e on present minimum wage is Rs. 4030/-
we have the union and made the agreement for permenant workers we are paying the PF on 60% of the total wage
most of teh contractor workrs will not stay more than 3 months
pl suggest me
regads, Venu
I am also having
From India, Hyderabad
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