Regional Provident Fund Commissioner has issued attached circular dated nil, with below directions to all employer in respect to employees hired through contractors in their establishment for compliance of Provident Fund/Pension Scheme/EDLI Scheme-
1 Principal Employer should ensure PF payments in respect of all their contractual employees also in their own PF code or separate sub code meant for employees employed through contractors. In case Principle Employer does not wish to use his own code, due can be deposited by Principal Employer himself in PF code no allotted to contractor after getting copy of separate Electronic Challan cum return i.e ECR and e-Challan from the contractor and by depositing PF dues by principal employer himself. ECR is employee wise monthly return showing PF wages & contribution etc.
2 Principal Employer should obtain copies of salary/wages registered signed by employees indicating PF account number along with soft copy of ECR and ask contractor to deposit separate e challan in respect of employees employed through contractor. Depositing one challan for labour supplied at various establishment keep principal employer in dark and give opportunity to cheat principal employer and employees both. Many contractor shows copy of one consolidated challan to several employer without linking it to ECR.
3 Principal employer does not ask for wages/salary register and ECR challan before releasing payment to contractors, later contractor fled/vanish away. Thus they don’t ensure deposit of PF dues regarding employee employed through contractors. Negligence of principal employer does not absolve them from above said statutory liability.
4 To cross check further principal employer can verify the veracity of challan through EPFO website with reference to TRR no and list of employees whose contribution has been deposited.
5 It is made clear that making payment to contractor in contravention to legal provisions will not tantamount to valid discharge of statutory obligation and Principal employer will be liable for action specified under the Act. It is not acceptable if simple some copies of challans of contractor by principal employer are produced without specifying linking the same with ECR copy showing employee wise PF dues regarding contractor employees.
871 Principal Employer should ensure PF payments in respect of all their contractual employees also in their own PF code or separate sub code meant for employees employed through contractors. In case Principle Employer does not wish to use his own code, due can be deposited by Principal Employer himself in PF code no allotted to contractor after getting copy of separate Electronic Challan cum return i.e ECR and e-Challan from the contractor and by depositing PF dues by principal employer himself. ECR is employee wise monthly return showing PF wages & contribution etc.
2 Principal Employer should obtain copies of salary/wages registered signed by employees indicating PF account number along with soft copy of ECR and ask contractor to deposit separate e challan in respect of employees employed through contractor. Depositing one challan for labour supplied at various establishment keep principal employer in dark and give opportunity to cheat principal employer and employees both. Many contractor shows copy of one consolidated challan to several employer without linking it to ECR.
3 Principal employer does not ask for wages/salary register and ECR challan before releasing payment to contractors, later contractor fled/vanish away. Thus they don’t ensure deposit of PF dues regarding employee employed through contractors. Negligence of principal employer does not absolve them from above said statutory liability.
4 To cross check further principal employer can verify the veracity of challan through EPFO website with reference to TRR no and list of employees whose contribution has been deposited.
5 It is made clear that making payment to contractor in contravention to legal provisions will not tantamount to valid discharge of statutory obligation and Principal employer will be liable for action specified under the Act. It is not acceptable if simple some copies of challans of contractor by principal employer are produced without specifying linking the same with ECR copy showing employee wise PF dues regarding contractor employees.
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PF-Circular-Suc cession Certificate.pdf