Dear All, I am seeking information and further clarification regarding the applicability of the ESI Act on "Works Contract" like Fabrication, Renovation, etc. If any nation wide application/notification has been provided on this behalf then please mention its information (would be very helpful). The only contract made in between in this case was for the completion of work and none of the monthly fixed payouts have been agreed up on. The contractor will himself manage all the material and labour payments and raise invoice ultimately.
I need to be clear on following:
1. Being Employer, Am I liable to provide separate ESI contributions?
2. If yes (#1) then on what behalf & what compliance shall I maintain as I have not contracted for same?
3. If no (#1) then are there any other similar liabilities on the employer and are there any obligations to confirm the same?
The references/notification quoted in the response shall be very very helpful in preparing this case study.
Regards & Thanks
Rahul Sah
From India
I need to be clear on following:
1. Being Employer, Am I liable to provide separate ESI contributions?
2. If yes (#1) then on what behalf & what compliance shall I maintain as I have not contracted for same?
3. If no (#1) then are there any other similar liabilities on the employer and are there any obligations to confirm the same?
The references/notification quoted in the response shall be very very helpful in preparing this case study.
Regards & Thanks
Rahul Sah
From India
For the purpose of social security measures such as PF, ESI, a company as a Principal employer, shall have the responsibility to enusre that the crew working in the establishment, whether they are principal contractors employees, or sub-contractors employees or even the own staff, eligible employees need to be covered under the relevant Acts (PF and ESI). Those who are drawing wages upto 15000/- need to be covered under PF and those who are drawing wages upto 21000/- need to be covered under ESI.
It is advised that before awarding the work contract, care must be taken that the contractor have valid Code nos under relevant statutory laws and you can also advise them to submit a copy of proof in support of their payment to the relevant authorities.
It is also advised that apart from your own employees, you should not make contributions directly to the authorities in respect of your contract employees, but advise your contractor to do so.
From India, Aizawl
625It is advised that before awarding the work contract, care must be taken that the contractor have valid Code nos under relevant statutory laws and you can also advise them to submit a copy of proof in support of their payment to the relevant authorities.
It is also advised that apart from your own employees, you should not make contributions directly to the authorities in respect of your contract employees, but advise your contractor to do so.
From India, Aizawl
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