hrohan18
Please respond to the following queries:
1. If an organization is registered under the EPF (that is > 20 employees) and employs contractual employees from a contractor which is not registered under the EPF, to work exclusively for my organization, am I liable to contribute the PF for such contractual employees
2. If an organization is registered under the EPF (that is > 20 employees) and employs contractual employees from a contractor which is not registered under the EPF, to work not exclusively for my organization, am I liable to contribute the PF for such contractual employees
Thanks

From India, New Delhi
sumitk.saxena
252

Hi,
If an organization covered under EPF and employs contractual employees from a contracter which is not covered under the EPF the liablity of PF contribution for those employees is of principal employer for whom the employees are working for.
thanks
sumit

From India, Ghaziabad
Madhu.T.K
4249

Whether the contract employees work exclusively or not the Principal employer has to pay PF in the first instance and on behalf of the contractor and deduct the amount paid from the sum payable to the contractor. As and when the contract is over the workmen ceases to be members and as such they can avail withdrawal or transfer of funds as if they are like any regular employees.
Regards,
Madhu.T.K

From India, Kannur
mravimtnl
74

As per section 2f of the EPF Act 1952 the term "employee" also includes employees of Contractor. Further as per para 30 of the Employee provident fund scheme it is the duty of the Principal employer to pay both the Contributions payble by the employees employed Directly or employes employed thru Immidiate employer. Hence in your case the EPF is payble to workmen of the Immidiate employer those who are working in your establishment though the Contractor is working exclusively for your organization or not.
regards
ravi

From United States
Maku
4

Hi,If contractors not having their own registration under PF Act & principal empployer covered under PFthen it is principal employers responsibilities & libilities to covered the contractual workers. It is also financial liability.Thanks,Makumakarand.s@rediffmail.com</p>
From India, Vadodara
hrohan18
Hi Ravi/ Madhu. thanks for the reply... but tell me something in that case an employee woulf have multiple PF account numbers coz he could be working for multiple principal employers thanks
From India, New Delhi
v30081984
As per section 2f of the EPF Act 1952 the term "employee" also includes employees of Contractor. Further as per para 30 of the Employee provident fund scheme it is the duty of the Principal employer to pay both the Contributions payble by the employees employed Directly or employes employed thru Immidiate employer. Hence in your case the EPF is payble to workmen of the Immidiate employer those who are working in your establishment though the Contractor is working exclusively for your organization or not.
regards
Virender

From India, Delhi
Madhu.T.K
4249

A contract employee need not have multiple EPF account numbers. He can have one number to which the contributions can be sent by different principal employers. As per scheme 36-B a contractor is required to furnish every month latest by 7th the details of the recoveries to be made from the each employee employed by him with the principal employer. Accordingly, the remittance shall be made.
Regards,
Madhu.T.K

From India, Kannur
hrohan18
Hi Madhu
Thanks and I understand that. However in case the contractor is not registered under the EPF (That is with < 20 employees) then the employee, employed by him, would not have an EPF code. In that case the principal employer would have to open the code of the contractor labour? in this case the contracted employee would have mulitple codes in case he is working with multiple principal employers at a time or otherwise
Rgds

From India, New Delhi
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