@Rajainakoti
Please check the CLRA (Contract Labor Regulation Act) related documents, and be ensure that the employees deputed to your establishment under CLRA belong to the payroll of immediate contractor i.e the contractor to whom PE has issued form 5 (CLRA), and they are submitting their CLRA related documents every month with invoice,
Now if employees are in regular payroll of the immediate contractor, and contractor is registered under EPF act, then PE can put the point.
However if the contractor also outsourced the employees with a non registered, then it is the part of PE to make ensure the compliance.
Verbal commitments and arguments between PE and Contractor does not protect us with applicability, but it needs documentary evidence
632Please check the CLRA (Contract Labor Regulation Act) related documents, and be ensure that the employees deputed to your establishment under CLRA belong to the payroll of immediate contractor i.e the contractor to whom PE has issued form 5 (CLRA), and they are submitting their CLRA related documents every month with invoice,
Now if employees are in regular payroll of the immediate contractor, and contractor is registered under EPF act, then PE can put the point.
However if the contractor also outsourced the employees with a non registered, then it is the part of PE to make ensure the compliance.
Verbal commitments and arguments between PE and Contractor does not protect us with applicability, but it needs documentary evidence
@Rajainkoti
form 11 is stationary form of EPFO, and as per your version the contractor is already registered in EPF, so they have to collect it and submit attested copy to PE.
Employment card is homemade stationary and it does not confirm the compliance of any rule/act
1) I have asked to check the ESIC Contribution record of the contractor employees working for PE, where the PE can find whether the salary component is higher then 15000 or not, but it is ignored by query posting person
2) CLRA act is applicable for contract employees, and in the documents, every compliance factor can be easily traced,
3) Neither PE nor the Contractor can bar to avail the employees to join EPF, unless the employee submit the form 11 to his/ her immediate employer mentioning that he/ she does not have any active EPF account and DOES NOT WANT to participate in EPF, by default every employee is eligible to join EPF, and as per company policy it may be on gross basics or ceiling of 15000,
mere on talks that above 15000 are exempted in EPF is wrong interpretation, unless the employee who draw above 15000/- basic gives written consent that he/ she does not want to join epf , employer can not exclude him/ her
form 11 is stationary form of EPFO, and as per your version the contractor is already registered in EPF, so they have to collect it and submit attested copy to PE.
Employment card is homemade stationary and it does not confirm the compliance of any rule/act
1) I have asked to check the ESIC Contribution record of the contractor employees working for PE, where the PE can find whether the salary component is higher then 15000 or not, but it is ignored by query posting person
2) CLRA act is applicable for contract employees, and in the documents, every compliance factor can be easily traced,
3) Neither PE nor the Contractor can bar to avail the employees to join EPF, unless the employee submit the form 11 to his/ her immediate employer mentioning that he/ she does not have any active EPF account and DOES NOT WANT to participate in EPF, by default every employee is eligible to join EPF, and as per company policy it may be on gross basics or ceiling of 15000,
mere on talks that above 15000 are exempted in EPF is wrong interpretation, unless the employee who draw above 15000/- basic gives written consent that he/ she does not want to join epf , employer can not exclude him/ her
Thank you for your inputs sir.
Lastly i have one question. Contractor have fixed workmen monthly wage as 16000/-. If he is not attending all the 26 days then the salary will be default less than 16000/-.
Example
16000/26=615 per days.
IF worked for 10 days then he will get 16000/26*20=12308. So his contribution for the month on ESIC will be on Rs 12308/- which is less than 15000 of PF exemption.
From India, Hyderabad
Lastly i have one question. Contractor have fixed workmen monthly wage as 16000/-. If he is not attending all the 26 days then the salary will be default less than 16000/-.
Example
16000/26=615 per days.
IF worked for 10 days then he will get 16000/26*20=12308. So his contribution for the month on ESIC will be on Rs 12308/- which is less than 15000 of PF exemption.
From India, Hyderabad
@Rajainkoti
16k average monthly, from where this amount recur from?
1) try to establish the same with ESIC contribution record,
2) make reconciliation of no of days working in your establishment of employee, if the employee works for 25 days and contractor pays for 10-15 days, then who is liable to make compliance?
the person who has posted the query is still overlooking the ESIC record factor, neither discussing the CLRA records nor the ESIC records, but trying to find loopholes in law to bypass the benefits of employees
Such practice is not to be appreciated in any case
16k average monthly, from where this amount recur from?
1) try to establish the same with ESIC contribution record,
2) make reconciliation of no of days working in your establishment of employee, if the employee works for 25 days and contractor pays for 10-15 days, then who is liable to make compliance?
the person who has posted the query is still overlooking the ESIC record factor, neither discussing the CLRA records nor the ESIC records, but trying to find loopholes in law to bypass the benefits of employees
Such practice is not to be appreciated in any case
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Exemption under Sec.17(1)(a) of PF Act 18.11.2011.pdf