dear
Your primary reponsibility should be to check whether the contractors employees (before they enter the factory premises itself) are covered by him under the act (i.e) whether they have individual insurance number either by the way of holding Temp I-Card (TIC) or Permanent I-Card(PIC). Only this ensures that the contract employees have been registered under ESIC.
In most cases the contractor's firm would have a code number but his employees would not have a individual insurance number issued by ESIC--meaning--these employees have not been registered. Therefore in the event of any accident, ESI would not be able to cover the employees who are not registered with it. Therefore it could not dispense them with any compensation. Thereby the employee would subsequently revoke the provisions of the Workmens Compensation Act. This could have serious financial implications on the company and could even question the role of the HR personnel working for the company. First ensure this, later go to the act of retention of monies from the contractor. Prevention is better than cure.
From India, Madras
1Your primary reponsibility should be to check whether the contractors employees (before they enter the factory premises itself) are covered by him under the act (i.e) whether they have individual insurance number either by the way of holding Temp I-Card (TIC) or Permanent I-Card(PIC). Only this ensures that the contract employees have been registered under ESIC.
In most cases the contractor's firm would have a code number but his employees would not have a individual insurance number issued by ESIC--meaning--these employees have not been registered. Therefore in the event of any accident, ESI would not be able to cover the employees who are not registered with it. Therefore it could not dispense them with any compensation. Thereby the employee would subsequently revoke the provisions of the Workmens Compensation Act. This could have serious financial implications on the company and could even question the role of the HR personnel working for the company. First ensure this, later go to the act of retention of monies from the contractor. Prevention is better than cure.
From India, Madras
Both are statutory payments and are falling under social security legislation voilation of these attracts heavy penalities and in case of accidents or unfore seen things happens the prinicipal employer is responsible for payments under ESI and PF in addition to payment of compensation as applicable.
With regard to liability these payments are to made as under
1.PF-Employer contribution is 12%, and employee contribution is 12% on Basic salary and DA if any,if basic and DA not exists on consolidated payment,or else you have to bifuricate the wages such as Basic,Hra,and other allowences as per company policy.
2.ESI -ESI contributions are to be made on total salary (salary means all payments up to Rs10,000/-)
3.It is only a brief simply paying is not sufficient we have to maintain documents and registears in addition to sendung half /annual returns under both
Patrudu
From India, Hyderabad
With regard to liability these payments are to made as under
1.PF-Employer contribution is 12%, and employee contribution is 12% on Basic salary and DA if any,if basic and DA not exists on consolidated payment,or else you have to bifuricate the wages such as Basic,Hra,and other allowences as per company policy.
2.ESI -ESI contributions are to be made on total salary (salary means all payments up to Rs10,000/-)
3.It is only a brief simply paying is not sufficient we have to maintain documents and registears in addition to sendung half /annual returns under both
Patrudu
From India, Hyderabad
we can deduct the full amount of PF CONTRIBUTION (BOTH) and also ESIC CONTRIBUTION (BOth) from his monthly bill and penal intrest if any
Dear Sir
Could you please give me compleate information and some case studies regarding ESI Act. I have been searching for this since a long time but could not get some satisfactory material. also suggest me some text reading for the same and link of few website to which i can refer to.
With Regards
Priyanka Singh
From India, Jaipur
Could you please give me compleate information and some case studies regarding ESI Act. I have been searching for this since a long time but could not get some satisfactory material. also suggest me some text reading for the same and link of few website to which i can refer to.
With Regards
Priyanka Singh
From India, Jaipur
I believe, you can make payments and deduct the remittance amount towards ESI & PF from the contractor's bills. Holding payments will not serve any purpose towards compliance to the laws. And to add to it, ultimately any default in payment from the contractor will become a liability of the principal employer as stated in the laws.
Regards
Sumit Kumar
Regards
Sumit Kumar
Dear,
Please calculate the avg. amount based on previous (ESI/PF) challans paid by the contractor and debit the same to his bill and credit to ESI/PF account.
An excess payment to Esi/PF account doesn't cause any problem. Issue a warning letter and make sure that it doesn't repeat.
need any more info... please feel free to reply....i 2 have dealt with same problem.
Regards,
Sachin M.
From India, Chicalim
Please calculate the avg. amount based on previous (ESI/PF) challans paid by the contractor and debit the same to his bill and credit to ESI/PF account.
An excess payment to Esi/PF account doesn't cause any problem. Issue a warning letter and make sure that it doesn't repeat.
need any more info... please feel free to reply....i 2 have dealt with same problem.
Regards,
Sachin M.
From India, Chicalim
Yes, Definately you can hold the payment and deduct the whole contribution from contractor’s bill. sumt
From India, Ghaziabad
From India, Ghaziabad
The following things can be done to avoid these statutory complexities:
1. An amout can be deducted from the contractors payment as retention money which can be paid back to him after he has winded up his operation and met the statutory compliance.
SUDIPTA
From India, Calcutta
1. An amout can be deducted from the contractors payment as retention money which can be paid back to him after he has winded up his operation and met the statutory compliance.
SUDIPTA
From India, Calcutta
There is no separate law governing how to manage a contractor. It all depend upon the company's policy. If you are sure that the contractor will deposit all statutory payments in time, you can go ahead with full payment. But to be of safer side, it is always better to keep a portion of amount pending sothat any payments due by the contractor to the government authorities could be recovered easily. How much to be retained shall be worked out taking into account the wages payable to the contractors employee, ESI/ EPF contributions etc. Why don't you retain total bill for at least one month at every stage of payment? Appraise it.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Sudha.GS
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=c3VkaGFAYXBhcmFqaXRoYS 5jb20=[/IMG]
From India, Madras
We are Aparajitha Corporate Services (P) Ltd, an emerging leader in the HR-KPO sector, with the PanIndia presence, and having expertise in Labour laws of various states.
Contract Labour Regulatory Services - Our progress is marked with the good and good enough ideas and applicability in regulating the Contract Labours for our prestigious clients.
For further more details, dial up 999 493 9987 to Mr.Rajesh or mail to [IMG]https://www.citehr.com/misc.php?do=email_dev&email=cmFqZXNoQGFwYXJhaml0aG EuY29t[/IMG]
Regards,
Sudha.GS
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=c3VkaGFAYXBhcmFqaXRoYS 5jb20=[/IMG]
From India, Madras
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls