We have engaged a contractor for executing a job by deploying certain number of labours. The contractor left the work midway, without making wage payment to his labours for the relevant period.
Now as per law, being the principal employer we are liable to make payment of wages, PF & ESI to the contract labours. My question is under which PF & ESI code should we make PF & ESI deposit in respect of the contract labours ? As we know recently EPFO & ESIC have introduced inline deposit of PF/ESI challans by the employer through a process of on-registration. Under this paradigm, can a principal employer be able to make deposit of PF?ESI on behalf of a third/contract employer? Pl. Suggest the future course of action.
Further what about the deposit of interest & damages for PF/ESI as there is some time lag between the wage payment by us being the principal employer ( we have already disbursed wages to contract labours) & deposit of PF/ESI (which is yet to be done by us).
From India, Bhubaneswar
Now as per law, being the principal employer we are liable to make payment of wages, PF & ESI to the contract labours. My question is under which PF & ESI code should we make PF & ESI deposit in respect of the contract labours ? As we know recently EPFO & ESIC have introduced inline deposit of PF/ESI challans by the employer through a process of on-registration. Under this paradigm, can a principal employer be able to make deposit of PF?ESI on behalf of a third/contract employer? Pl. Suggest the future course of action.
Further what about the deposit of interest & damages for PF/ESI as there is some time lag between the wage payment by us being the principal employer ( we have already disbursed wages to contract labours) & deposit of PF/ESI (which is yet to be done by us).
From India, Bhubaneswar
Dear
your problem is genuine,,
first your company management has to decide to continue CL with other contractor or not
If not, than meet to PF / ESIC authority to suggest solution about this problem
with regards
Amit
From India, Ahmadabad
3your problem is genuine,,
first your company management has to decide to continue CL with other contractor or not
If not, than meet to PF / ESIC authority to suggest solution about this problem
with regards
Amit
From India, Ahmadabad
Dear Sir,
You have to pay wages if contract evades payment as a principal employer to the contract Labour.
Regarding P.F./ESI remittances, you can recover from them in their ssalary. If you know the Contract ESI/PF code Nos, you can remit the same.
If not keep quite. The recovery remains in your co. account. Pl. decide late as per situation.
D.GURUMURTHY
LL.HR 7 IR CONSULTANT,
Hyderabad.
From India, Hyderabad
You have to pay wages if contract evades payment as a principal employer to the contract Labour.
Regarding P.F./ESI remittances, you can recover from them in their ssalary. If you know the Contract ESI/PF code Nos, you can remit the same.
If not keep quite. The recovery remains in your co. account. Pl. decide late as per situation.
D.GURUMURTHY
LL.HR 7 IR CONSULTANT,
Hyderabad.
From India, Hyderabad
Dear,
your problem is a common problem in cotract labour management. So don't be panic. Just pay them their wages with full and final settlement. All these amount you can recover from the contractor's running bill. And no need to remit the PF/ESIC as practically no one checks it in case contract labour.
From India, Hyderabad
your problem is a common problem in cotract labour management. So don't be panic. Just pay them their wages with full and final settlement. All these amount you can recover from the contractor's running bill. And no need to remit the PF/ESIC as practically no one checks it in case contract labour.
From India, Hyderabad
Dear Sujita,
You may consider the expertise of pyramids staffing solutions Pvt Ltd to adequately handle all the aspects to Contract Labour.
We offer CL services on pan india basis and had deployed manpower with the top notch available brands in the country where we had adhered to the highest degree of applicable statutory compliance and all applicable enactments.
I can assure you our service offering shall definitely delight you,the way we had been delighting our existing clientele companies.
Please feel free to reach out to us at arnab(at)pyramidsconsultants(dot)com or over the number-09038713576
From India, Chandigarh
You may consider the expertise of pyramids staffing solutions Pvt Ltd to adequately handle all the aspects to Contract Labour.
We offer CL services on pan india basis and had deployed manpower with the top notch available brands in the country where we had adhered to the highest degree of applicable statutory compliance and all applicable enactments.
I can assure you our service offering shall definitely delight you,the way we had been delighting our existing clientele companies.
Please feel free to reach out to us at arnab(at)pyramidsconsultants(dot)com or over the number-09038713576
From India, Chandigarh
I don't agree with some of you who say keep quite, do n't do deposit any contribution and the like.
As per me, the contractor who has his own PF and ESI codes as in this case, is an employer in itself. It has the responsibility to the employees deployed by it. Every worker who works for a principal employer to whom the provisions of the Contract Labour Act are attracted is to be treated as the worker of the principal employer unless it is satisfied that the establishment has secured a certificate of registration for the relevant period under Sec 7 and it had employed contract labour through a licensed contractor under Sec 12. No right flows from the provisions of the Act for the contract labourers to be absorbed by or to become the employees of the principal employer. You need not worry in this issue.
Action to be taken:
1. Once the Contractor had fled away, I feel it's time to say goodby to the employees, deployed through it. There is no point in continuing with a dormant Contractor. Termination of contract should be preceded by proper notice in terms of contract. Hope this has been a clause of contract in your case.
2. It should be substituted by another contractor, with proper license and PF ESI codes.
3. Tress the individual PF/ESI accounts of the contract labour from the Regional PF/ESI office using the PF codes of the Contractor and Deposit every unpaid contributions (both side)with interests.
4. The amount paid for the time being should be recovered from the pending bills of the contractor along with related costs and penalties if any.
I must complement your co, for paying the wages to the contract labours. This is mandatory in terms of PW Act.
Keeping quite and sitting mum is not the solution to this problem.
From India, Haora
As per me, the contractor who has his own PF and ESI codes as in this case, is an employer in itself. It has the responsibility to the employees deployed by it. Every worker who works for a principal employer to whom the provisions of the Contract Labour Act are attracted is to be treated as the worker of the principal employer unless it is satisfied that the establishment has secured a certificate of registration for the relevant period under Sec 7 and it had employed contract labour through a licensed contractor under Sec 12. No right flows from the provisions of the Act for the contract labourers to be absorbed by or to become the employees of the principal employer. You need not worry in this issue.
Action to be taken:
1. Once the Contractor had fled away, I feel it's time to say goodby to the employees, deployed through it. There is no point in continuing with a dormant Contractor. Termination of contract should be preceded by proper notice in terms of contract. Hope this has been a clause of contract in your case.
2. It should be substituted by another contractor, with proper license and PF ESI codes.
3. Tress the individual PF/ESI accounts of the contract labour from the Regional PF/ESI office using the PF codes of the Contractor and Deposit every unpaid contributions (both side)with interests.
4. The amount paid for the time being should be recovered from the pending bills of the contractor along with related costs and penalties if any.
I must complement your co, for paying the wages to the contract labours. This is mandatory in terms of PW Act.
Keeping quite and sitting mum is not the solution to this problem.
From India, Haora
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.
PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls