Dear All,
Please let me know, the responsibilities and liabilities of principle employer in following case;
1. Late submission of PF contribution by Contractor??? (PF paid after 15th)
2. Late submission of ESIC contribution by Contractor??? (ESIC paid after 21st)
Feel free to contact me if any clarification required.
Regards,
Faruk Shaikh
+91-9974768786
+91-9998022889
From India, Mumbai
32Please let me know, the responsibilities and liabilities of principle employer in following case;
1. Late submission of PF contribution by Contractor??? (PF paid after 15th)
2. Late submission of ESIC contribution by Contractor??? (ESIC paid after 21st)
Feel free to contact me if any clarification required.
Regards,
Faruk Shaikh
+91-9974768786
+91-9998022889
From India, Mumbai
Dear Faruk,
Late submittion of any statutory payment shall attract the Interest charges & Damage charges against it..
Therefore, failure to pay any payment to any authority by contractor, it shall be direct responsiblity of principle employer & all liability comes on Principle employer, in that case, priciple employer need to pay the respective payment to authority & same can be recover from payment invoice of contractor.
From India, Mumbai
Late submittion of any statutory payment shall attract the Interest charges & Damage charges against it..
Therefore, failure to pay any payment to any authority by contractor, it shall be direct responsiblity of principle employer & all liability comes on Principle employer, in that case, priciple employer need to pay the respective payment to authority & same can be recover from payment invoice of contractor.
From India, Mumbai
Hi,
Any person employed directly or through a contractor in an establishment or in connection with the work of the establishment would also be termed as the ‘employee’ of that particular establishment as per Section 2(f) of the EPF & MP Act, 1952.
It is needless to reiterate that all the above contract employees would need to be enrolled under the PF Code Number of the establishment.
In case if such contract employees are enrolled under a separate PF code No. of the contractor, it is the principal employer’s duty to ensure that contributions at the prescribed rates are deducted and remitted by the contractor in respect of the said contract employees failing which, being the principal employer, the establishment will held liable for the payment of such contributions also.
The below are the detailed explanations on the same as per the legal provisions.
Para 30. Payment of Contribution:
1. The employer shall, in the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer’s contribution) and also, on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in the Scheme referred to as the member’s contribution).
2. In respect of employees employed by or through a contractor, the contractor shall recover the contribution payable by such employee (in this Scheme referred to as the member’s contribution) and shall pay to the principal employer the amount of member’s contribution so deducted together with an equal amount of contribution (in this Scheme referred to as the employer’s contribution) and also administrative charges.
3. It shall be the responsibility of the principal employer to pay both the contribution payable by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor and also administrative charges.[Explanation – For the purpose of this paragraph the expression “administrative charges” means such percentage of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee, and in respect of which provident fund contributions are payable as the Central Government may, in consultation with the Central Board and having regard to the resources of the Fund for meeting its normal administrative expenses, fix]
Para 36-B. Duties of Contractors. :
Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the recoveries of contributions in respect of employees employed by or through him and shall also furnish to him such information as the principal employer is required to furnish under the provisions of the Scheme to the Commissioner.
Hope, the above information suffices the need.
In Both the cases even PF and ESI, Principle Employer Responsibility to Pay the contributions.
From India, Mumbai
Any person employed directly or through a contractor in an establishment or in connection with the work of the establishment would also be termed as the ‘employee’ of that particular establishment as per Section 2(f) of the EPF & MP Act, 1952.
It is needless to reiterate that all the above contract employees would need to be enrolled under the PF Code Number of the establishment.
In case if such contract employees are enrolled under a separate PF code No. of the contractor, it is the principal employer’s duty to ensure that contributions at the prescribed rates are deducted and remitted by the contractor in respect of the said contract employees failing which, being the principal employer, the establishment will held liable for the payment of such contributions also.
The below are the detailed explanations on the same as per the legal provisions.
Para 30. Payment of Contribution:
1. The employer shall, in the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer’s contribution) and also, on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in the Scheme referred to as the member’s contribution).
2. In respect of employees employed by or through a contractor, the contractor shall recover the contribution payable by such employee (in this Scheme referred to as the member’s contribution) and shall pay to the principal employer the amount of member’s contribution so deducted together with an equal amount of contribution (in this Scheme referred to as the employer’s contribution) and also administrative charges.
3. It shall be the responsibility of the principal employer to pay both the contribution payable by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor and also administrative charges.[Explanation – For the purpose of this paragraph the expression “administrative charges” means such percentage of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee, and in respect of which provident fund contributions are payable as the Central Government may, in consultation with the Central Board and having regard to the resources of the Fund for meeting its normal administrative expenses, fix]
Para 36-B. Duties of Contractors. :
Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the recoveries of contributions in respect of employees employed by or through him and shall also furnish to him such information as the principal employer is required to furnish under the provisions of the Scheme to the Commissioner.
Hope, the above information suffices the need.
In Both the cases even PF and ESI, Principle Employer Responsibility to Pay the contributions.
From India, Mumbai
Dear all,
The principle employer is bound to ensure the satisfactorily compliance in respect of workers employed directly or indirectly and also liable to deposit the interests and damages so imposed on late deposits of contributions in case the compliance is being made in the employer's code of the principle employer.
In other cases, where the contractor is independently covered under the provisions of EPF or ESIC, the Department has to recover these amounts directly from the contractors where the employer's code of such contractors are alive.
From India, Delhi
The principle employer is bound to ensure the satisfactorily compliance in respect of workers employed directly or indirectly and also liable to deposit the interests and damages so imposed on late deposits of contributions in case the compliance is being made in the employer's code of the principle employer.
In other cases, where the contractor is independently covered under the provisions of EPF or ESIC, the Department has to recover these amounts directly from the contractors where the employer's code of such contractors are alive.
From India, Delhi
Dear Faruk,
Let me please begin my response with a corrective note for the unintentional wrong spelling of any term can lead us to miss the exact meaning intended to be conveyed through it.It is not " principle employer " but "Principal Employer" the C.L.R.A Act mentions about and means that the one who is the most important employer among the two or more including a sub-contractor in the system of contract labour. Simply put, being the principal or main person in relation to the matter of employment of the contract labour engaged by him thro the contractors, he is the "Principal Employer"; being the principal or master or contractee to the contract with the contractor or agent in the matter of employment of contract labour in connection with the work of his establishment, the Principal Employer assumes vicarious liability or responsibility in certain functions discharged by the contractor.Now, go through your questions and the answers given by Tushar and Ravi.
From India, Salem
Let me please begin my response with a corrective note for the unintentional wrong spelling of any term can lead us to miss the exact meaning intended to be conveyed through it.It is not " principle employer " but "Principal Employer" the C.L.R.A Act mentions about and means that the one who is the most important employer among the two or more including a sub-contractor in the system of contract labour. Simply put, being the principal or main person in relation to the matter of employment of the contract labour engaged by him thro the contractors, he is the "Principal Employer"; being the principal or master or contractee to the contract with the contractor or agent in the matter of employment of contract labour in connection with the work of his establishment, the Principal Employer assumes vicarious liability or responsibility in certain functions discharged by the contractor.Now, go through your questions and the answers given by Tushar and Ravi.
From India, Salem
Dear Mr Frank
EPF & ESI contribution to be remitted on or before 15th and 21st on every month respectively. Delay in remittance of contributions will attract damages and penalty also disallowance of IT benefits.
You may calculate such damages and interest which shall be deducted from Contractor wage bill as and when contractor defaults.
From India, Bangalore
EPF & ESI contribution to be remitted on or before 15th and 21st on every month respectively. Delay in remittance of contributions will attract damages and penalty also disallowance of IT benefits.
You may calculate such damages and interest which shall be deducted from Contractor wage bill as and when contractor defaults.
From India, Bangalore
When the contractor has independent PF & ESIC code number he will be responsible to remit contributions on time; lest he will face penal provisions (penalty, interest or even prosecution) Important point is whether the employer has paid the wage bill of contractor on time? For one or two months contractor may remit contributions from own funds. If the contractor does not have capacity to remit contributions for payments not received from principal employer and writes PE about the same, then the matter may cause harm to PE.
From India, Mumbai
From India, Mumbai
Sir(s),
In my opinion,if the contractor or "immediate employer" has separate code number under ESI Act, 1948, even then the principal employer is liable for defaults in respect of non-payment of contribution in respect of employees employed in or in connection with the work of the principal employer.
From India, Noida
In my opinion,if the contractor or "immediate employer" has separate code number under ESI Act, 1948, even then the principal employer is liable for defaults in respect of non-payment of contribution in respect of employees employed in or in connection with the work of the principal employer.
From India, Noida
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