we have manpower contractor, and we are paying daily wage and if OT is applicable, OT is also paid(like 310 per day wage, then OT Rate will be 310/8 = 38.75 per hour). ESI & PF we are paying on both Duty and OT, but the contractor has not paying to EPFO, only on duty amount only paying. is it correct..? and what type action will be take by them. please suggest
From India, Hyderabad
From India, Hyderabad
Dear Harikrishna,
First of all, check at your end that, whether the below mentioned are following or not...? (Considering your company come under Shops & Establishment act). if not pls. confirm.
1) As per S & E act.sec.17, The Working hours Spread over of the employees in commercial establishment shall not exceed eleven hours in any days.
2) As per S& E act. Sec. 63. When any employee is required to work overtime in excess of the limit of hours of work, he must be paid for such work at double the rate of his ordinary wages.
If you are following above rules & paying according to your contractor, then contractor is liable to pay to authority.
& if in case, contractor failure to pay any payment or due to any authority.
Then as per Contract Labour Act. 1970, All liability come on you as principle employer, in that case, you have to pay the all dues or payment to authority & same can be debit to concern contractor.
I hope you are clear now on this.
Regards,
Tushar Swar.
From India, Mumbai
206First of all, check at your end that, whether the below mentioned are following or not...? (Considering your company come under Shops & Establishment act). if not pls. confirm.
1) As per S & E act.sec.17, The Working hours Spread over of the employees in commercial establishment shall not exceed eleven hours in any days.
2) As per S& E act. Sec. 63. When any employee is required to work overtime in excess of the limit of hours of work, he must be paid for such work at double the rate of his ordinary wages.
If you are following above rules & paying according to your contractor, then contractor is liable to pay to authority.
& if in case, contractor failure to pay any payment or due to any authority.
Then as per Contract Labour Act. 1970, All liability come on you as principle employer, in that case, you have to pay the all dues or payment to authority & same can be debit to concern contractor.
I hope you are clear now on this.
Regards,
Tushar Swar.
From India, Mumbai
Dear Member
If I understand your question correctly you want to know whether the payment of PF by the contractor is only on Regular working salary and not on the Overtime Salary.
In this case the contractor is right in paying PF only on regular duty hours and not on Overtime.
If he is paying ESI contribution only on regular duty and not on overtime then it is wrong.
Secondly your calculation of OT should be 310/8 = 38.75x2 i.e. Rs. 77.50.
Hope this resolves your query.
Regards
Preetam Deshpande
From India, Mumbai
If I understand your question correctly you want to know whether the payment of PF by the contractor is only on Regular working salary and not on the Overtime Salary.
In this case the contractor is right in paying PF only on regular duty hours and not on Overtime.
If he is paying ESI contribution only on regular duty and not on overtime then it is wrong.
Secondly your calculation of OT should be 310/8 = 38.75x2 i.e. Rs. 77.50.
Hope this resolves your query.
Regards
Preetam Deshpande
From India, Mumbai
Dear Harikrishna,
i agree with Mr. Thusar swar and If your company belongs to factories act
1. Per day workinging hours are not more than 10.30 with break.
2. Per week workings hours are not more than 48 hours.
And also check your contract agreement . If contracter fails remit to EPFO, put one condition to them. You must collect last payment challan from them before payment in every month.
From India, Hyderabad
i agree with Mr. Thusar swar and If your company belongs to factories act
1. Per day workinging hours are not more than 10.30 with break.
2. Per week workings hours are not more than 48 hours.
And also check your contract agreement . If contracter fails remit to EPFO, put one condition to them. You must collect last payment challan from them before payment in every month.
From India, Hyderabad
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Revised online process for issue of PF code from 1.12.2015.pdf