Hi,
I agree with Viju Kumar. However, as a Prinicipal employer the (Katz's company) company is respponsible for PF deduction of contract employees also. Though they would not deduct it directly but it needs to be checked (audited periodically) and proofs of deposit (challans) need be asked from contract vendor for the PF, ESI etc.
Mr. Sasikumar, please correct me if I am wrong. I would be grateful to you..
best Regards
Devendra Jawaji
From India, Gurgaon
I agree with Viju Kumar. However, as a Prinicipal employer the (Katz's company) company is respponsible for PF deduction of contract employees also. Though they would not deduct it directly but it needs to be checked (audited periodically) and proofs of deposit (challans) need be asked from contract vendor for the PF, ESI etc.
Mr. Sasikumar, please correct me if I am wrong. I would be grateful to you..
best Regards
Devendra Jawaji
From India, Gurgaon
Thanks all for clarifying my query.
I do not have any issues whether PF is deducted or not as I am getting the whole-sum salary. I was just overly curious about the absence of PF thing. I had received the same reply from the management as mentioned by Viju Kumar. And later through my other contacts, I came to know that there are numerous small companies with no PF deductions and the employees are payed well and hence even if there is no PF deduction then it is absolutely normal.
I also realized that they do not check with the contract vendors for all the details as it is the vendor's job to keep their things right and not this small company's headache as they do not have zeal nor the resources for it. Limited number of employees means more work and full utilization for what they are hired. Most of the admin/finance/facilities work is outsourced.
Once again thanks to all for sharing your valuable insights.
Regards.
From India, Bangalore
I do not have any issues whether PF is deducted or not as I am getting the whole-sum salary. I was just overly curious about the absence of PF thing. I had received the same reply from the management as mentioned by Viju Kumar. And later through my other contacts, I came to know that there are numerous small companies with no PF deductions and the employees are payed well and hence even if there is no PF deduction then it is absolutely normal.
I also realized that they do not check with the contract vendors for all the details as it is the vendor's job to keep their things right and not this small company's headache as they do not have zeal nor the resources for it. Limited number of employees means more work and full utilization for what they are hired. Most of the admin/finance/facilities work is outsourced.
Once again thanks to all for sharing your valuable insights.
Regards.
From India, Bangalore
Katz
P.F Act is a social welfare legislation and therefore do not relax under the false notion that you are not concerned about P.F deductions of contarct labour since you are getting a wholesome salary. No one can have an arbitrary view opposed to law more so to an Act like P.F Act which was enacted to secure social welfare of employees, to deprive an employee of his legitimate right to a particular benfit guaranteed by law.You need to understand the scope of the definition of 'employee' under Section 2(f)of the P.F Act to have a proper understanding about the coverage of employees.Do not be also under the false impression that it is contractor's responsibility to pay the contribution. Though it is contarctor's responsibility to pay contribution, Para (30) of the P.F Scheme 1952 makes it abundantly clear that it is the responsibility of the Principal employer in the first instance to pay the contributions of the employees including contract labour to P.F. Further it is the responsibility of the Principal Employer under Sec.21 of the Contract Labour Act 1970 to ensure that the contractor pays wages to the contarct labour properly and if the contractor fails to pay the wages, it is the responsibility of the Principal employer to pay the wages to contract labour.
Furher, the P.F authorities have the right to determine disputes of coverage and quantum of P.F dues and have enforcenment powers to recover the dues even by way of attcahment of employer's properties.Not only this, the defaulting employer renders himself liable for penalties -both pecuniary and penal under teh P.F .Act. the Act knows know distincton between a small organisation or a big organisation when it deals with violations. Therefore , be serious, go throuhgh the P.F Act thouroughly and take a prudent decision.
B.Saikumar
HR & Labour Law advisor
Mumbai.
From India, Mumbai
1899P.F Act is a social welfare legislation and therefore do not relax under the false notion that you are not concerned about P.F deductions of contarct labour since you are getting a wholesome salary. No one can have an arbitrary view opposed to law more so to an Act like P.F Act which was enacted to secure social welfare of employees, to deprive an employee of his legitimate right to a particular benfit guaranteed by law.You need to understand the scope of the definition of 'employee' under Section 2(f)of the P.F Act to have a proper understanding about the coverage of employees.Do not be also under the false impression that it is contractor's responsibility to pay the contribution. Though it is contarctor's responsibility to pay contribution, Para (30) of the P.F Scheme 1952 makes it abundantly clear that it is the responsibility of the Principal employer in the first instance to pay the contributions of the employees including contract labour to P.F. Further it is the responsibility of the Principal Employer under Sec.21 of the Contract Labour Act 1970 to ensure that the contractor pays wages to the contarct labour properly and if the contractor fails to pay the wages, it is the responsibility of the Principal employer to pay the wages to contract labour.
Furher, the P.F authorities have the right to determine disputes of coverage and quantum of P.F dues and have enforcenment powers to recover the dues even by way of attcahment of employer's properties.Not only this, the defaulting employer renders himself liable for penalties -both pecuniary and penal under teh P.F .Act. the Act knows know distincton between a small organisation or a big organisation when it deals with violations. Therefore , be serious, go throuhgh the P.F Act thouroughly and take a prudent decision.
B.Saikumar
HR & Labour Law advisor
Mumbai.
From India, Mumbai
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