Hello Sir/Ma'am,
I want to start my work for 2-3 months with 5-6 employees. Currently, my factory employs only 1 person. How can I work with Contract Labour? Will PF and ESIC be mandatory in this case?
From India, Delhi
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I want to start my work for 2-3 months with 5-6 employees. Currently, my factory employs only 1 person. How can I work with Contract Labour? Will PF and ESIC be mandatory in this case?
From India, Delhi
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In case you are already covered under the PF & ESI Acts, then you will continue to be liable for due compliance of them. As you are proposing to engage contract labour to carry out the work, in case of prior coverage, you will have to ensure that the contractor complies with the requirements, otherwise you will have to pay.
In case you were not having coverage in both the Acts, then you don't have to bother about them.
From India, Mumbai
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1593In case you were not having coverage in both the Acts, then you don't have to bother about them.
From India, Mumbai
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Dear Vishal,
You have a factory with a single employee only. Now you want to engage the services of 5 to 6 employees for work that would last for 2 to 3 months. Therefore, you want them on a contract basis for 2-3 months only, and it is not necessary that they should be engaged through a contractor as it would be more expensive. You can employ such people directly on a Fixed-Term Contract basis for a maximum of 3 months only. Since the total number of employees in your factory falls below 10, you are out of the coverage of ESI and EPF Acts.
From India, Salem
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You have a factory with a single employee only. Now you want to engage the services of 5 to 6 employees for work that would last for 2 to 3 months. Therefore, you want them on a contract basis for 2-3 months only, and it is not necessary that they should be engaged through a contractor as it would be more expensive. You can employ such people directly on a Fixed-Term Contract basis for a maximum of 3 months only. Since the total number of employees in your factory falls below 10, you are out of the coverage of ESI and EPF Acts.
From India, Salem
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