T.Thirumurugan
32

Dear HR Professionals and seniors,
Please Urgently Clarify Following Things
We Took Civil Contract Work (Boundary Wall Construction And Chain Link Fencing) From One Company. And Also We Have Licence Under The Contract Labour (Regulation And Abolition) Act, 1970.
Our Employees Strength 15 Nos. At Present.
In Future it May Increase / Decrease.
This Project Work Duration Is Hardly 6 Months
Should We Deduct Pf And Esi To that Contract Labour Under The Contract Labour (Regulation And Abolition) Act, 1970 And The Contract Labour (Regulation And Abolition) Central Rules, 1971.
Kindly clarify
Thanks with Regards
Thirumurugan

From India, Hyderabad
Attached Files (Download Requires Membership)
File Type: pdf AndhraPradeshContractLabourRules1971.pdf (4.77 MB, 50 views)

T.Thirumurugan
32

Please Urgently Clarify Following Things
Dear HR Professionals and seniors,
Please Urgently Clarify Following Things
We Took Civil Contract Work (Boundary Wall Construction And Chain Link Fencing) From One Company. And Also We Have Licence Under The Contract Labour (Regulation And Abolition) Act, 1970.
Our Employees Strength 15 Nos. At Present.
In Future it May Increase / Decrease.
This Project Work Duration Is Hardly 6 Months
Should We Deduct Pf And Esi To that Contract Labour Under The Contract Labour (Regulation And Abolition) Act, 1970 And The Contract Labour (Regulation And Abolition) Central Rules, 1971.
Kindly clarify
Thanks with Regards
Thirumurugan

From India, Hyderabad
Glidor
632

the day when the total strength exceeds (including contractor worker) for principal employer, the rules get enforced. if you dont cover, the principal employer is bound to deduct and pay.

T.Thirumurugan
32

Dear sir,
Our civil project work is only 6 months, once project will be completed, all employee's service will come to end automatically after completion of project, In this case, is the PF and ESI rule applicable to us(contractor) strictly.
We received contract licence for 50 workmen
Thanks with Regards
Thirumurugan

From India, Hyderabad
Shrikant_pra
264

What about BOCW Act? You must register under the building And other construction workers act too.
From India, Mumbai
Glidor
632

. Contract Labour (Regulation & Abolition) Central Rules, 1971

An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith

Be enacted by Parliament in the Twenty-first Year of the Republic of India as follows :

CHAPTER I

PRELIMINARY

1. Short title, extent, commencement and application.-(1) This Act may be called the Contract Labour (Regulation and Abolition) Act, 1970.

(2) It extends to the whole of India.

(3) It shall come into force' on such date- as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. -

(4) It applies-

(a) to every establishment in which twenty or more workmen, art employed or were

employed on any day of the preceding twelve months as contract labour ;

(b) to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen :


Glidor
632

contract labour licence is granted on 20 or above manpower itself, so all rules of EPF/ESIC ( profession tax , if applicable) are applicable for the contractor,
it does not matter that they cease to work on certain day after the contract finish,
if the contractor opt to surrender the EPF /ESIC/Contract labour licence after finish of work, they can do it at their will, with supporting documents, but in no case they can deny the labour welfare acts / rules applicable.


Madhu.T.K
4249

For the principal employer, construction of compound wall may be outside the purview of their regular business and no ESI/PF need to be paid in respect of the payment made for that. But you being an employer is expected to have ESI registration because your employment strength on any day is more than 10. Accordingly, when you engage people and pay them wages, you should deduct ESI.
I would also like to clarify that construction of compound wall may be treated as work incidental to the work of the factory depending upon the situation. There has been different views with regard to its treatment. But to be of safer side, the Principal employers use to pay the contract money after deducting the ESI/PF. For the contractor also, it is advisable to do so because the work involves risk and ESI is nothing but a good scheme of insurance and medical attention.
Madhu.T.K

From India, Kannur
vedalcm
3

Since you were engaged contract worker less than prescribed limit (<19) therefore the provision of obtaining Contract Labour Licence would't be decisive, Whereas in respect of ESIC shall be ensured whether areas been notified or not, if applicable the contractor/principal employer should made contribution of the same. Nevertheless the EPF is applicable to contractor.
Ascertaining the applicability of BoCW @ own risk. The act is not applicable in case if the constriction within the ambit of existing Factory expansion.
Veda
VEDA LEGAL RESOURCES (P) Ltd | Legal & Compliance Services

From India, Madras
umakanthan53
6018

Dear Thirumurugan,
Numerical strength of the workmen/employees actually employed is one of the determinants for the applicability of all the three enactments viz., the ESI Act, the EPF Act and the CLRA Act to any establishment. However, by virtue of the difference in the the threshold strength plus the duration of employment, the application of the Acts can be concurrent or consecutive. For all practical purposes, a contractor's establishment also an establishment under the ESI and EPF Acts. Therefore, I concur with Mr.Madhu. Even in the case of your being an unlicensed contractor in respect of a particular Principal Employer because of both the number and duration parameters, what is the guarantee that you will not rotate some of your contract labour among other PEs?

From India, Salem
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