We engage 5 to 6 Job contracts for few works which is not on daily basis. We engage only on need basis. May be, in a month 15 to 20 days, we may have to engage job contractors. We do not pay any wage for them and we only pay the agency according to the work which is accomplished.
I would like to whether EPF is mandatory or not for such Job contracts.
From India, Pondicherry
1I would like to whether EPF is mandatory or not for such Job contracts.
From India, Pondicherry
Hi Ranga,
Your requirement could be seen as 'job/piece contract' and you as a Principal Employer has to look into your contractor who supplies these labourers, their obligations under CLRAAct.
Though you may not 'directly' pay them wages, but as a Principal Employer it's your duty to ensure their wages fulfil obligations under the Minimum Wages Act & Payment of Wages Act and EPF Act as well if applicable. If your contractor enlist 10 persons anytime in a year he is liable to comply with EPF formalities and contribute. The main contention is they are working within your premises which will tell you what to do.
From India, Bangalore
Your requirement could be seen as 'job/piece contract' and you as a Principal Employer has to look into your contractor who supplies these labourers, their obligations under CLRAAct.
Though you may not 'directly' pay them wages, but as a Principal Employer it's your duty to ensure their wages fulfil obligations under the Minimum Wages Act & Payment of Wages Act and EPF Act as well if applicable. If your contractor enlist 10 persons anytime in a year he is liable to comply with EPF formalities and contribute. The main contention is they are working within your premises which will tell you what to do.
From India, Bangalore
Yes it is mandatory if your Organization is covered under PF Act. Your contractor may not be covered under PF Act, but as the employees are working at your premises , you as PE hast to comply and if there is no PF Code for Contractor then you have to comply through your Code.
If the invoice of the contractor is not bifurcated to Material cost, Labor cost etc. , then the PF authority may charge PF on the entire invoice.
Always better to engage people through such contractors who are complying properly.
Thanks & Regds.,
S K Bandyopadhyay ( WB, HOWRAH)
From India, New Delhi
If the invoice of the contractor is not bifurcated to Material cost, Labor cost etc. , then the PF authority may charge PF on the entire invoice.
Always better to engage people through such contractors who are complying properly.
Thanks & Regds.,
S K Bandyopadhyay ( WB, HOWRAH)
From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Online payment of PF mandatory from 1.1.2016.pdf