One of my friend is a construction contractor and has been engaging less than 20 labours hence EPF registration is not mandatory.
Presently he is working with construction company which is holding his 20% of labour payments on acount of non registration under EPF act. The company is telling him to get registered under EPF act.
He pleaded them that as the no. of workers are not more than 20 , EPF is not appplicable to him and the construction company can deduct the EPF contributions under their PF code.
To this the company is saying that it will increase thier workload substantially , therfore they will not deduct the PF contributions under their head and is telling the contractor to get registered under it.
Questions:
1.Should the contractor register himself under EPF act VOLUNTARILY even though he is not eligible ?
2.What is the other way to get the withheld money back from company ?
From India, Pune
Presently he is working with construction company which is holding his 20% of labour payments on acount of non registration under EPF act. The company is telling him to get registered under EPF act.
He pleaded them that as the no. of workers are not more than 20 , EPF is not appplicable to him and the construction company can deduct the EPF contributions under their PF code.
To this the company is saying that it will increase thier workload substantially , therfore they will not deduct the PF contributions under their head and is telling the contractor to get registered under it.
Questions:
1.Should the contractor register himself under EPF act VOLUNTARILY even though he is not eligible ?
2.What is the other way to get the withheld money back from company ?
From India, Pune
Dear N Saroj,
If the principal employer has registered with EPF, the contractor is bound to register; regardless of number of employees. The only way out to get exempted is not to work with such an employer.
Abbas.P.S
From India, Bangalore
517If the principal employer has registered with EPF, the contractor is bound to register; regardless of number of employees. The only way out to get exempted is not to work with such an employer.
Abbas.P.S
From India, Bangalore
Once the Principle employer is registered under EPF [Even all other acts which are noramaly applicable to principle employer like, ESI, Gratuity, Bonus, Workmen compensation, leaves, Minimum wages, DA. ] it is applicable for Contract employee. Does not matter how many manpower is with Contractor. Even one person, it is applicable.
If contractor is working only for a particular principle and having less employee, in that case he can do the compliances under Principle's code no. Other wise it is most advisable to have his own registrations under various acts. It is always on his benefit.
If he wish to make compliance under Principle's code No., he requires to produce all his relevant wages record as well as P & L accounts. Principle may not agree for this and they will deduct straight away 25.61%, which is non practicable. Principle engage the contractor to reduce / restrict their efforts for compliances under various acts as well as reduce / share their efforts.
Regards
Pramod Thakar
Pune 9822435423
From India, Pune
If contractor is working only for a particular principle and having less employee, in that case he can do the compliances under Principle's code no. Other wise it is most advisable to have his own registrations under various acts. It is always on his benefit.
If he wish to make compliance under Principle's code No., he requires to produce all his relevant wages record as well as P & L accounts. Principle may not agree for this and they will deduct straight away 25.61%, which is non practicable. Principle engage the contractor to reduce / restrict their efforts for compliances under various acts as well as reduce / share their efforts.
Regards
Pramod Thakar
Pune 9822435423
From India, Pune
What if the principal employer(construction co.) is not registered under EPF ? Then contractor also need not register under EPF. Then whose liability will it be?
From India, Pune
From India, Pune
The Term Principal Employer is "If you are providing services to under Contract to Some one else individual / company / firm etc" here it becomes sub contract as per law.
As your status is sub contractor and the Principal is to whom you are providing the Services.
If Principal is falling the bracket of EPF then obviously you / your company is also bound to get the registration.
Ramakant
From India, Pune
As your status is sub contractor and the Principal is to whom you are providing the Services.
If Principal is falling the bracket of EPF then obviously you / your company is also bound to get the registration.
Ramakant
From India, Pune
if principal employer has covered under EPF contractor should covered under the EPF Act.otherwise it is duty of principal employer to deduct the contribution of the contractual worker and submit under his own code number.if number of worker less than twenty one can registered voluntary u/s 1(4) EPF Act.
S S Rawat.
From India, Jhajjar
S S Rawat.
From India, Jhajjar
In any Act the manpower of contractors is to be included with the employer to check applicability of the Act. If the both employee strength exceeds 20, the EPF Act is applicable to the org and it must obtain registration under EPF with retrospective effect. If a contractor is engaging less than 20 workers each,s/he will face difficulty in obtaining registration but there are legal ways out of this situation.
BTW I posses extensive knowledge of BOCW Act,
Shrikant Prabhudesai
shrikant_pra@yahoo.com
From India, Mumbai
BTW I posses extensive knowledge of BOCW Act,
Shrikant Prabhudesai
shrikant_pra@yahoo.com
From India, Mumbai
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EPF compliances of their Contractors & contract.pdf