Dear Professional Friends,
We have introduced the contractor to supply contract labors to our plant. Since the contractor is new he is not having 20+ employees, so he is not eligible to get the EPF code. In this context we need to clear service charges of contractor who has supplied labors for unskilled work.
Please share your input regarding clearing his service charges against not having the EPF code.
Thanks & Regards,
Manjunath MH

From India, Bangalore
Dear Manjunath ji,
Your contractor is having not more than 20 employees overall. Therefore he is not eligible of PF registration legally. But, since PF Act is applicable to you, the employees of your contractor working with you should be covered under PF. If not, you are liable to it.
Since you have engaged a contractor who is not registered with PF, you should make the PF compliance of contractor under your code.
The same thing is applicable for other social security enactments also.

From India, Mumbai
Dear Manjunath ji, As regards to service charges, it is not a defense available to you that you have nor cleared the service charges of contractor for want of compliance.
From India, Mumbai
Dear Mr Manjunath
We are service providers for TVS group, VST group, Concorde group, TATA group, Pioneer group etc., in Karnataka, AP and Tamil Nadu for the the last 20 years. We can help your Contractors and your Company for the labour law compliance in the engagement of contract labour. Pl contact us - . Thanks and Regards N Natraajhan

From India, Bangalore
Liability under EPF falls on the shoulders of principal employer i.e. you. Hence the compliance has to be doen by you. Yes, if the contractor does not have EPF code number because of number his employees is below 20, you have to discharge the PF liability under your code.
Lalit Thakkar

From India, Surat
Dear Friend,
I fully agree with views offered by Mr Thakkar.
As a HR Manager, you are to ensure that no contractor is enlisted and engaged for any work who does not have PF & Code Registration in future.
In order to settle the bill of the contractor, I suggest you deduct the exact PF amount payable from the bill of the contractor and deposit the same under your code, as being a principle employer you are liable to comply with the same.
Regards,
Sibabrata Majumdar
Management Consultant -Legal & HR
Kolkata, Mb:9830023707

From India, Calcutta
Hi
He can opt for voluntary coverage under EPF Act and obtain the code or otherwise you have to deduct PF Contribution and pay it
under contractor wise list in your establishment code .
As a principal employer you are liable to comply with the provisions under EPF Act
regards
swaminathan
9840330727

From India, Madras
As a new consulting company do we have to have compliance with PF code and ESI code, Please suggest regards Vikas
From India, Hazaribagh
Dear Mr. Manjunath,
Though it is not mandatory on the contractor's part now (since the no. of employees are less than 20) to register with EPF, still he can opt for EPF registration by contacting the enforcement officer of the epf office concerned.
The main reason is that in future he may increase the strength above 20 for your company OR even he can supply labours to some other factory or company with or without your knowledge. Better he can opt for epf as now a days it has become a quick process to do so.
At any instance do not pay your contractor's epf under your establishment code which will put you in trouble later if suppose he starts supplying labours to some other companies too.
Regards
Vijay...

From India, Madras
Dear,
If any Contractor provides manpower for your establishment , Said contractor have not ESI & PF Code No., but he provides service at your establishment. Every principal employer duty, he checks his Statutory Complience and fulfil.
In this stage you deduct both share(Employees & Employer )of contribution and deposit your code No.
Thanks & Regards
M A Zinna
Management Consultant (HR)
Mail ID:
Mobile No.9999170142

From India, New Delhi
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