Hi, We have a manufacturing factory. We hired a contractor for transport services so that our employees can commute from home to factory and back to home. Now PF inspector asked us to deposit PF for the drivers of the hired buses. Are we liable to pay the PF for bus drivers
From India, Solan
From India, Solan
Dear Colleague,
If you have a glance on the employee definition under the Employees Provident Fund & MP Act 1952 it includes " any person employed by or through contractor. ( Kindly refer below)
2(f) “employee” means any person who is employed for wages in any kind of work, manual or
otherwise, in or in connection with the work of 6
[an establishment], and who gets his wages directly
or indirectly from the employer, 7
[and includes any person—
(i) employed by or through a contractor in or in connection with the work of the
establishment;
The other aspect is his salary limit for coverage as of now is Rs.15000/-per month. In case of fresh drivers first time employed if they are above this limit then they are exempted. But if their wages are within the limit prescribed ( Rs.15000/-) then they are liable to be covered under PF and contributions are to be remitted by the Contractor or by Your organization
In some cases despite the above said salary limit, some of the drivers ( whos wages are more than Rs.15000/- pm) might be already member in Provident Fund in their previous employment and might have active UAN Number and PF Number and in that case they are also to be covered and you can limit the contributions to the extent of Rs.15000/-PM.
In this case you need to go through what type of agreement is entered between the contractor and your Factory and streamline that first. It is advisable that if the contractor does not have a PF Code number for his establishment, then insist to apply and get code number so that it will be easy for the contractor to cover his employees under PF/ EPS and every month collect proof of remittance from contractor. Failing this system, and if the contractor is not having separate PF Code number, then the Principal Employer ( your factory) has to comply PF for the drivers under the PF Code of your establishment. This is the settled process .
God Bless
Dr P.Sivakumar
DrSIVAGLOBAL HR
Tamil Nadu
From India, Chennai
309If you have a glance on the employee definition under the Employees Provident Fund & MP Act 1952 it includes " any person employed by or through contractor. ( Kindly refer below)
2(f) “employee” means any person who is employed for wages in any kind of work, manual or
otherwise, in or in connection with the work of 6
[an establishment], and who gets his wages directly
or indirectly from the employer, 7
[and includes any person—
(i) employed by or through a contractor in or in connection with the work of the
establishment;
The other aspect is his salary limit for coverage as of now is Rs.15000/-per month. In case of fresh drivers first time employed if they are above this limit then they are exempted. But if their wages are within the limit prescribed ( Rs.15000/-) then they are liable to be covered under PF and contributions are to be remitted by the Contractor or by Your organization
In some cases despite the above said salary limit, some of the drivers ( whos wages are more than Rs.15000/- pm) might be already member in Provident Fund in their previous employment and might have active UAN Number and PF Number and in that case they are also to be covered and you can limit the contributions to the extent of Rs.15000/-PM.
In this case you need to go through what type of agreement is entered between the contractor and your Factory and streamline that first. It is advisable that if the contractor does not have a PF Code number for his establishment, then insist to apply and get code number so that it will be easy for the contractor to cover his employees under PF/ EPS and every month collect proof of remittance from contractor. Failing this system, and if the contractor is not having separate PF Code number, then the Principal Employer ( your factory) has to comply PF for the drivers under the PF Code of your establishment. This is the settled process .
God Bless
Dr P.Sivakumar
DrSIVAGLOBAL HR
Tamil Nadu
From India, Chennai
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls