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Options available for contractor to make the payment of ESI & PF for the left employees - CiteHR

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sitaramsn
26

This is related to contract workmen payment of ESI & PF. The labour contractor deployed workers at Principal Employers company before enrolling them under ESI & PF. When contractor tried enroll them , he could not as Aadhaar authentication failed for PF and lacking bank account details of the worker. The contractor advised them to update aadhaar details and open a bank account to process further. However, the workmen left the work without doing the required.
Hence the contractor could not pay ESI & PF for these workmen and defaulted payment to that extent. Now the PE is insisting for the payment proof, else will terminate the contract.
What are the options available for contractor to make the payment of ESI & PF for the left employees? Requesting to through light on this matter.

From India, Hyderabad
KK!HR
1422

From the facts narrated it appears that a few workmen of the contractor did not get their aadhar cards corrected and consequently their PF & ESI linkage couldn't be made. Now these workmen have left and there is no possibility of them coming back. The PE has insisted for their coverage in both PF and ESI Schemes.
In the above background and to ensure due compliance, one possible way out is to deposit the contribution amount in its entirety and distribute it among various workmen. The contractor may have to bear both employer & employee contribution but it is a lesser evil. In this way there would be due compliance as regards the wages claimed to have been paid and the records will be fine. Otherwise let the contractor do not bring the non-compliance part of wages on record and also not claim wages, contribution of PF & ESI for these workmen

From India, Mumbai
sitaramsn
26

Thanks a lot for the suggestion sir. Requesting for any other suggestions from seniors of the group.
From India, Hyderabad
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