What should be the employer's legal position if the contract labour do not want deduction of PF from their salary.The point of view of labour is that they do not want to go through the painful process of collecting the PF and would rather get their full wages now.
From India, Hyderabad
From India, Hyderabad
it is the duty of Principle Employer as well as contractor to deduct contribution and deposit the same with RPFC. if the contractor having pf code then in their code or not having code than PE code.
However if the employee's are new joinee fresher and getting more then salary coverage provided in Act as Rs 6500/-in that case they may be exculded and may fall in the catagary of exculded employees but the contract or PE need to ask form them for Form 11 with tick mark that i have never been a member of PF fund and do not want to be.
87However if the employee's are new joinee fresher and getting more then salary coverage provided in Act as Rs 6500/-in that case they may be exculded and may fall in the catagary of exculded employees but the contract or PE need to ask form them for Form 11 with tick mark that i have never been a member of PF fund and do not want to be.
Thanks.But what happens if a labour with salary less than 6500/- does not want PF to be deducted from his wages and as a result the PE ends up paying up 24 % contribution just to meet the requirements of PF rules.Under what rule or by what method do we officially convince the PF department that the labour does not want PF deduction ?
From India, Hyderabad
From India, Hyderabad
There is no other way but to cover such employees. To be of safer side do not engage such kind of employees. You may instruct your contractor not to engage him in your establishment. As far as possible give contract only to such contractors who possess PF and ESI registration.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Notification No G.S.R. 1128(E) Contract Labour (Regulation and Abolition) Central Amendment .pdf
LABOUR CONTRACT AGREEMENT.doc
Contract Labour Act.zip