Dear Madhu,
As far as MBA graduates are concerned, you cannot deduct their PF/ESI from their stipend because their jobs are on a temporary basis. You can check with your company what policies have been established for these fresh graduates. If the policy allows bringing them on rolls, then you can pay them a stipend and deduct the PF/ESI accordingly.
Thanks & regards,
Chitragya
From India, New Delhi
7As far as MBA graduates are concerned, you cannot deduct their PF/ESI from their stipend because their jobs are on a temporary basis. You can check with your company what policies have been established for these fresh graduates. If the policy allows bringing them on rolls, then you can pay them a stipend and deduct the PF/ESI accordingly.
Thanks & regards,
Chitragya
From India, New Delhi
Hi,
As Mr. Madhu has rightly said, if a contractor doesn't make payment of PF/ESI on time, it is the responsibility of a principal employer to ensure the timely payments of the contractor. Otherwise, it becomes a liability for the employer.
With respect to the contractor's payment, if you hold it for a short or long time, ultimately, the contract workers will suffer. This may become an IR issue. The best approach is either to enforce discipline for timely payment or terminate the contract.
Sameer Deshmukh
From India, Pune
As Mr. Madhu has rightly said, if a contractor doesn't make payment of PF/ESI on time, it is the responsibility of a principal employer to ensure the timely payments of the contractor. Otherwise, it becomes a liability for the employer.
With respect to the contractor's payment, if you hold it for a short or long time, ultimately, the contract workers will suffer. This may become an IR issue. The best approach is either to enforce discipline for timely payment or terminate the contract.
Sameer Deshmukh
From India, Pune
Dear Chitragya,
I didn't say that stipend given to MBA interns (I repeat Interns) will attract ESI/PF. But if these trainees are on the rolls of the company, they will be covered subject to the verdict on EPF.
The thread, in fact, relates to contractors' failure and the liability of the principal employer. There is a thread in the Labour and Employee Relations forum of this site regarding a calculation of interest and damages by Mr. Tiwari Sudhir. The same is very useful in the present discussion. Please follow the link: https://www.citehr.com/133673-calcul...tml#post565375
Regards,
Madhu.T.K
From India, Kannur
I didn't say that stipend given to MBA interns (I repeat Interns) will attract ESI/PF. But if these trainees are on the rolls of the company, they will be covered subject to the verdict on EPF.
The thread, in fact, relates to contractors' failure and the liability of the principal employer. There is a thread in the Labour and Employee Relations forum of this site regarding a calculation of interest and damages by Mr. Tiwari Sudhir. The same is very useful in the present discussion. Please follow the link: https://www.citehr.com/133673-calcul...tml#post565375
Regards,
Madhu.T.K
From India, Kannur
Hi,
Normal practices in the organization are that when the contractor submits the bills, the bills should accompany an attendance sheet, wage sheet, and statutory payment challan copy. Without these documents, the contractor's bill cannot be certified for payment. In your case, it seems there have been lapses, and a bottleneck situation has arisen. Mr. Madhu rightly said that if the contractor fails to remit the statutory dues, then the entire liability falls under the Principal Employer.
I would suggest that instead of making any harsh decisions at this point, you need to talk to the contractor and try to exert pressure on him to fulfill all the statutory dues. You may convey to him that if he fails to produce the documents, the company will not be able to continue with the contract, and the outstanding bills along with the security deposit will be adjusted to fulfill the statutory dues.
Regarding the query about the penalty, you need not worry at this point. Focus on how you will get the above things done from the contractor.
Thanks,
Sunil
From India, Pune
Normal practices in the organization are that when the contractor submits the bills, the bills should accompany an attendance sheet, wage sheet, and statutory payment challan copy. Without these documents, the contractor's bill cannot be certified for payment. In your case, it seems there have been lapses, and a bottleneck situation has arisen. Mr. Madhu rightly said that if the contractor fails to remit the statutory dues, then the entire liability falls under the Principal Employer.
I would suggest that instead of making any harsh decisions at this point, you need to talk to the contractor and try to exert pressure on him to fulfill all the statutory dues. You may convey to him that if he fails to produce the documents, the company will not be able to continue with the contract, and the outstanding bills along with the security deposit will be adjusted to fulfill the statutory dues.
Regarding the query about the penalty, you need not worry at this point. Focus on how you will get the above things done from the contractor.
Thanks,
Sunil
From India, Pune
Hi,
I have been working as a contractor with an MNC for the past year, and I have been receiving my salary in cash through a consultant. They do not deduct any ESI/PF.
Can anybody suggest if this is the correct practice?
Thanks in advance.
From India, Delhi
I have been working as a contractor with an MNC for the past year, and I have been receiving my salary in cash through a consultant. They do not deduct any ESI/PF.
Can anybody suggest if this is the correct practice?
Thanks in advance.
From India, Delhi
Dear Madam,
If you have communicated with MBA (pursuing/fresh) individuals regarding their salary breakdown and confirmed that there was no EPF account for them, and you have hired them as trainees for a period of 6 months, then there is no requirement for an EPF account. Neither the state government nor the central government will be authorized to interfere or enforce any laws on your company by any means. However, all agreements should be documented in writing.
Regards,
Sunil Kumar
From India, New Delhi
If you have communicated with MBA (pursuing/fresh) individuals regarding their salary breakdown and confirmed that there was no EPF account for them, and you have hired them as trainees for a period of 6 months, then there is no requirement for an EPF account. Neither the state government nor the central government will be authorized to interfere or enforce any laws on your company by any means. However, all agreements should be documented in writing.
Regards,
Sunil Kumar
From India, New Delhi
Dear,
You can create a system for contractors, i.e.:
1. First, ensure that they have valid PF & ESI numbers.
2. Create a chart of the total PF & ESI that needs to be deducted from the contract labor, including the employer's share.
3. Deduct the total amount from the contractor's payment and release it as soon as they deposit the challan to your department.
This is just the basic skill needed to handle contractors. Always keep in mind that contractors may attempt to deceive HR personnel, but you must be smart.
It is mandatory for the principal employer to ensure that their contractors are depositing the PF & ESI; otherwise, ESI & PF officers will issue a challan to the factory, and the employer will have to bear all the amount with interest.
I trust you will be able to manage the situation. If you encounter any issues, please write to me at my personal email address
, and I will try to help resolve your problem.
All the best.
From India, Solon
You can create a system for contractors, i.e.:
1. First, ensure that they have valid PF & ESI numbers.
2. Create a chart of the total PF & ESI that needs to be deducted from the contract labor, including the employer's share.
3. Deduct the total amount from the contractor's payment and release it as soon as they deposit the challan to your department.
This is just the basic skill needed to handle contractors. Always keep in mind that contractors may attempt to deceive HR personnel, but you must be smart.
It is mandatory for the principal employer to ensure that their contractors are depositing the PF & ESI; otherwise, ESI & PF officers will issue a challan to the factory, and the employer will have to bear all the amount with interest.
I trust you will be able to manage the situation. If you encounter any issues, please write to me at my personal email address
All the best.
From India, Solon
Everyone, go back to here. RBG said to BAZOKA, "He said he will destroy all the plants of evil. Do you know who I am? >>> السلام عليكم ورحمة الله وبركاته."
From Saudi Arabia
From Saudi Arabia
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