Dear All,
We have a contract of service with material, and we appoint around 260-270 employees in the company, ensuring compliance with PF & ESIC regulations. When required, we hire labor on a cash voucher basis. In this scenario, are we liable for PF or ESIC contributions for the labor we hire using cash vouchers? Please guide.
Thank you.
From India, Ahmedabad
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We have a contract of service with material, and we appoint around 260-270 employees in the company, ensuring compliance with PF & ESIC regulations. When required, we hire labor on a cash voucher basis. In this scenario, are we liable for PF or ESIC contributions for the labor we hire using cash vouchers? Please guide.
Thank you.
From India, Ahmedabad
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@Nrupal When number and attendance is confirmed of workers, all applicable contributions are applicable, irrespective of mode of payment
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But, we hire the labour for 2 or 4 days only, till we contribute PF & ESIC ?
From India, Ahmedabad
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From India, Ahmedabad
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@Nrupal, ask your principal employer if they would take responsibility in case of a fatal accident during these two to four days.
Generally, on Form 12/13, they ask for the ESIC and EPF UAN before issuing an entry pass.
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Generally, on Form 12/13, they ask for the ESIC and EPF UAN before issuing an entry pass.
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My suggestion is that if you have a labor contractor in your establishment, you may consider hiring these employees through the contractor to ensure social compliance such as PF and ESI, and in case of any accidents, the contractor would handle these issues.
If you continue to pay by cash voucher, you need to deduct PF and ESI.
Aswath Hari
From India, Chennai
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If you continue to pay by cash voucher, you need to deduct PF and ESI.
Aswath Hari
From India, Chennai
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Contract Labor - PPT.ppt
Go on Core Activity-Contra ct labor.pdf