Dear Mr. Essykkr,
As a principal employer, we are deducting the PF & ESI of daily wage workers. Are they eligible to receive the benefits for the same? For instance, if we hire a daily wage worker for cleaning every Sunday and we deduct the PF & ESI for the same worker or a different worker, will they be able to obtain an ESI card or the deducted PF amount?
Please guide.
Thanks in Advance,
Rashmi
From India, Lucknow
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5As a principal employer, we are deducting the PF & ESI of daily wage workers. Are they eligible to receive the benefits for the same? For instance, if we hire a daily wage worker for cleaning every Sunday and we deduct the PF & ESI for the same worker or a different worker, will they be able to obtain an ESI card or the deducted PF amount?
Please guide.
Thanks in Advance,
Rashmi
From India, Lucknow
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Dear HR Team,
What about the temporary employees? We are in the service industry. We have four office boys who fall under temporary employees. I want to know whether we should deduct ESIC & PF. (All these employees are receiving a salary of 4000-4500).
Regards,
JANHAVI
From India, Mumbai
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What about the temporary employees? We are in the service industry. We have four office boys who fall under temporary employees. I want to know whether we should deduct ESIC & PF. (All these employees are receiving a salary of 4000-4500).
Regards,
JANHAVI
From India, Mumbai
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Dear Rashmi,
This depends on your work arrangement.
Firstly, suppose you have hired the services of such a cleaning worker from any agency or contractor for every Sunday on a regular basis, and if the agency has their own ESI/PF code and contributions are being paid regularly, then they shall be provided an I.P. number/TC card/smart card under ESIC and a PF account number under the PF Act. In such a situation, the worker will be able to get all benefits under ESIC and will be able to withdraw their PF amount.
Secondly, if you have hired the services of such a cleaning worker on a regular basis by yourself, then they will be covered, and contributions of ESI and PF are payable by you. You should have all personal details of the worker or ask for them. Simply put, if you are paying contributions, you should certainly have the personal details of such workers (Already established by the Supreme Court in a number of cases that it is the duty of the employer to have all details of employees). Based on the personal details, you will issue an I.P. number and TC/Smart Card, and then they will definitely be able to get all benefits and be able to withdraw their PF amount.
Thirdly, if such a worker is not a regular worker, if they are a freelancer, then they will not be coverable because on the next Sunday you may ask for another worker to be engaged, they will clean and leave. Such a freelancer will not be considered an employee as held in the case of Modern Equipment Co V/s ESIC 1984 LLN 960.
In the case of the third part, these are loopholes in both the ESI Act and PF Act because both stress that even if a person works for a single day, they are still coverable. But in such cases, employers don't have particulars of such workers. However, if in your bill of accounts, you show such charges as labor charges, then at the time of inspection, both authorities, ESI & PF, press employers for the contribution, which practically seems odd because in such a way, this amount goes to the government exchequer and not to the workers.
Hope this satisfies your query.
From India, Delhi
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This depends on your work arrangement.
Firstly, suppose you have hired the services of such a cleaning worker from any agency or contractor for every Sunday on a regular basis, and if the agency has their own ESI/PF code and contributions are being paid regularly, then they shall be provided an I.P. number/TC card/smart card under ESIC and a PF account number under the PF Act. In such a situation, the worker will be able to get all benefits under ESIC and will be able to withdraw their PF amount.
Secondly, if you have hired the services of such a cleaning worker on a regular basis by yourself, then they will be covered, and contributions of ESI and PF are payable by you. You should have all personal details of the worker or ask for them. Simply put, if you are paying contributions, you should certainly have the personal details of such workers (Already established by the Supreme Court in a number of cases that it is the duty of the employer to have all details of employees). Based on the personal details, you will issue an I.P. number and TC/Smart Card, and then they will definitely be able to get all benefits and be able to withdraw their PF amount.
Thirdly, if such a worker is not a regular worker, if they are a freelancer, then they will not be coverable because on the next Sunday you may ask for another worker to be engaged, they will clean and leave. Such a freelancer will not be considered an employee as held in the case of Modern Equipment Co V/s ESIC 1984 LLN 960.
In the case of the third part, these are loopholes in both the ESI Act and PF Act because both stress that even if a person works for a single day, they are still coverable. But in such cases, employers don't have particulars of such workers. However, if in your bill of accounts, you show such charges as labor charges, then at the time of inspection, both authorities, ESI & PF, press employers for the contribution, which practically seems odd because in such a way, this amount goes to the government exchequer and not to the workers.
Hope this satisfies your query.
From India, Delhi
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(Fact Checked)-[response] Based on the latest laws and regulations, the information provided is mostly accurate. However, it's important to ensure compliance with all legal requirements regarding ESI and PF deductions for workers. (1 Acknowledge point)
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Dear Rashmi,
This depends on your work arrangement.
Firstly, suppose you have hired the services of a cleaning worker from any agency or contractor for every Sunday on a regular basis, and if the agency has their own ESI/PF code and contributions are being paid regularly, then he shall be provided an I.P number/TC card/smart card under ESIC. PF account number under PF Act. In such a situation, he will be able to get all benefits under ESIC and will be able to withdraw his PF amount.
Secondly, if you hired the services of a cleaning worker on your own on a regular basis, then he will be covered, and contributions of ESI and PF are payable by you. You should have all personal details of the worker or ask. Simply put, if you are paying contributions, certainly you should have the personal details of such workers (Already been held by the Supreme Court in a number of cases that it is the duty of the employer to have all details of employees). You will issue an I.P number and TC/Smart Card, then the worker will definitely be able to get all benefits and be able to withdraw his PF amount.
Thirdly, if such a worker is not a regular worker, if he is a freelancer, then he will not be coverable because on the next Sunday, you will ask for another worker to be engaged, clean, and go on. Such a freelancer will not be considered an employee, as held in the case of Modern Equipment Co V/s ESIC 1984 LLN 960.
In the case of the third part, these are the loopholes in both the ESI Act and PF Act because both stress that even if a person works for a single day, he will still be coverable. But in such cases, employers don't have particulars of such workers, but in your accounts, you show such charges as labor charges, then both authorities press employers for the contribution which practically seems odd because in this way this amount goes to the government exchequer, not to the workers.
From India, Delhi
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This depends on your work arrangement.
Firstly, suppose you have hired the services of a cleaning worker from any agency or contractor for every Sunday on a regular basis, and if the agency has their own ESI/PF code and contributions are being paid regularly, then he shall be provided an I.P number/TC card/smart card under ESIC. PF account number under PF Act. In such a situation, he will be able to get all benefits under ESIC and will be able to withdraw his PF amount.
Secondly, if you hired the services of a cleaning worker on your own on a regular basis, then he will be covered, and contributions of ESI and PF are payable by you. You should have all personal details of the worker or ask. Simply put, if you are paying contributions, certainly you should have the personal details of such workers (Already been held by the Supreme Court in a number of cases that it is the duty of the employer to have all details of employees). You will issue an I.P number and TC/Smart Card, then the worker will definitely be able to get all benefits and be able to withdraw his PF amount.
Thirdly, if such a worker is not a regular worker, if he is a freelancer, then he will not be coverable because on the next Sunday, you will ask for another worker to be engaged, clean, and go on. Such a freelancer will not be considered an employee, as held in the case of Modern Equipment Co V/s ESIC 1984 LLN 960.
In the case of the third part, these are the loopholes in both the ESI Act and PF Act because both stress that even if a person works for a single day, he will still be coverable. But in such cases, employers don't have particulars of such workers, but in your accounts, you show such charges as labor charges, then both authorities press employers for the contribution which practically seems odd because in this way this amount goes to the government exchequer, not to the workers.
From India, Delhi
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(Fact Checked)-[Correct response provided.] (1 Acknowledge point)
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Dear essykkr, Thanks for such a wounder-full reply i think the reply not only help me but all who are really confuse about the PF & ESI deduction for Contract Labour & Freelancer. Regards Rashmi
From India, Lucknow
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From India, Lucknow
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If the contractor deducted the ESIC payment from the employee's salary, but ESIC facilities were not provided, and no ESIC card was issued by the contractor a year ago. Additionally, the contractor stated, "This is your fault; you did not submit the documents on time."
From India, Delhi
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From India, Delhi
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Some employees at ISM have been working as daily-rated workers (compensate also) for the past 15 years, but ISM is not deducting PF, and they are unable to get any facilities from ISM. Kindly let me know whether they are entitled to have PF deducted. Please provide the relevant rule so that we can fight with ISM in this regard.
From India, Dhanbad
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From India, Dhanbad
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(Fact Checked)-The employees working as daily rated workers for more than 15 years at ISM should be entitled to PF deductions as per the law. (1 Acknowledge point)
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(Fact Checked)-The temporary employees earning between 4000-4500 should have ESI and PF deducted as they meet the eligibility criteria. (1 Acknowledge point)