Is there any firm and logic way to look to it that sub-contractor complies with the PF formalities.
Consider the case of a company who hires say machines engaging 9 NOs of employees on contract basis. The Monthly EPF challan provided by sub-contractor is of full ManPower with him. How can we ensure that the said 9 Employees are covered under the PF challan.
One way is to ask for copy of form6A ( Annual Return) and monthly return on form 5 & 10. But what if the contract is given after the currency period say from april. Form-3A is generally filled up during the close of period because only good companies update them monthly but small contractors even don't send "NIL' returns
Consider the case of a company who hires say machines engaging 9 NOs of employees on contract basis. The Monthly EPF challan provided by sub-contractor is of full ManPower with him. How can we ensure that the said 9 Employees are covered under the PF challan.
One way is to ask for copy of form6A ( Annual Return) and monthly return on form 5 & 10. But what if the contract is given after the currency period say from april. Form-3A is generally filled up during the close of period because only good companies update them monthly but small contractors even don't send "NIL' returns
Hi Aby,
Apart from the annual returns in Form 6A, the employer is required to submit Form 12 within 25 days from the close of the month showing the aggregate of recoveries made. Form 12 contains the name of the subscriber (employee) and the PF account number.
Form 3A is again a annual statement and will not suffice your purpose.
So you can insist on Form 12 along with the PF challan to track PF compliance by your sub contractor.
Regards
Gautam
From India, Pune
Apart from the annual returns in Form 6A, the employer is required to submit Form 12 within 25 days from the close of the month showing the aggregate of recoveries made. Form 12 contains the name of the subscriber (employee) and the PF account number.
Form 3A is again a annual statement and will not suffice your purpose.
So you can insist on Form 12 along with the PF challan to track PF compliance by your sub contractor.
Regards
Gautam
From India, Pune
Dear aby,
The answer to the above is that if your total employee strength in the establishment exceeds 20 you need PF, similarly if the sub-contractor has more than 20 workers under his roll irrespective of whether they are working jointly or in different establishments PF applies.
Well, for checking PF compliance we go in for self declaration from our contractors every month wherein they are requested to declare the name, PF number, gross pay, pay on which PF is calculated, PF contribution and finally the total contribution paid by the Contractor and this is to be submitted with their bill.
Regards,
SC
From India, Thane
45The answer to the above is that if your total employee strength in the establishment exceeds 20 you need PF, similarly if the sub-contractor has more than 20 workers under his roll irrespective of whether they are working jointly or in different establishments PF applies.
Well, for checking PF compliance we go in for self declaration from our contractors every month wherein they are requested to declare the name, PF number, gross pay, pay on which PF is calculated, PF contribution and finally the total contribution paid by the Contractor and this is to be submitted with their bill.
Regards,
SC
From India, Thane
Dear Aby,
The rule is that the number 20 is for an establishment, it does not matter whether the number 20 consist of regular, temporary, contractor, badli or other workers.
Let me elucidate with an example:
Suppose a factory has total number of workers = 100. The breakup is a follows:
Regular Employees: 9
Contractor Employees = 91
Divided as follows: 5 each for 17 Contractors and 6 for one Contractor.
As per the above none of the Contractors as well as the Company needs to be covered under compulsory PF as the number of workers in all case is less than 20. This is a case of PF evasion, so to stop this, as per PF the strength will be taken as 100 and how you are going to register depends on the Management and Contractors.
Regards,
SC
From India, Thane
The rule is that the number 20 is for an establishment, it does not matter whether the number 20 consist of regular, temporary, contractor, badli or other workers.
Let me elucidate with an example:
Suppose a factory has total number of workers = 100. The breakup is a follows:
Regular Employees: 9
Contractor Employees = 91
Divided as follows: 5 each for 17 Contractors and 6 for one Contractor.
As per the above none of the Contractors as well as the Company needs to be covered under compulsory PF as the number of workers in all case is less than 20. This is a case of PF evasion, so to stop this, as per PF the strength will be taken as 100 and how you are going to register depends on the Management and Contractors.
Regards,
SC
From India, Thane
Dear SC,
The thing you mentioned is feasible mostly only theoratically since you also know the complexions involved.
But take into account NATURE of work performed. The mentioned Sub-Contractor are not being paid for Man Power but instead for the manufacure of certain goods, where the Raw Material is made available to the Sub-Contractor and he only provides services on it. Still further the number of Man Power deployed also changes frequently. ?????????????????????????????????????????????????? ?????????
NOT POSSIBLE
Aby
The thing you mentioned is feasible mostly only theoratically since you also know the complexions involved.
But take into account NATURE of work performed. The mentioned Sub-Contractor are not being paid for Man Power but instead for the manufacure of certain goods, where the Raw Material is made available to the Sub-Contractor and he only provides services on it. Still further the number of Man Power deployed also changes frequently. ?????????????????????????????????????????????????? ?????????
NOT POSSIBLE
Aby
Dear Aby,
Yes, it is purely thoeritical, I just gave it to explain to you the law. Look, if your sub-contractors are working outside your premises, somewhere else on job contract basis, then PF is not required, but PF is required in case the sub-contractor is supplying manpower or working in your premises and has a site office.
Let's say you have a logistic Company, and you have an arrangement with a Service Centre to service your vehicles, then the coverage of PF is for Service Centre Employee does not fall under your preview, but if you have a Service cum Repair Workshop inside your establishment and you have outsourced this job to a contractor then the employees engaged will be covered under PF and you as the Principal Employer will be responsible.
In the first case the employees of the Service Centre is there not specifically engaged for your job only but for many such Companies. The test is whether an employer employee relations exist under the Contract Labour (regulation and Abolition) Act, 1970. If the answer is "Yes" then PF coverage will be attracted and if "No" PF coverage is not under your purview
Regards,
SC
From India, Thane
Yes, it is purely thoeritical, I just gave it to explain to you the law. Look, if your sub-contractors are working outside your premises, somewhere else on job contract basis, then PF is not required, but PF is required in case the sub-contractor is supplying manpower or working in your premises and has a site office.
Let's say you have a logistic Company, and you have an arrangement with a Service Centre to service your vehicles, then the coverage of PF is for Service Centre Employee does not fall under your preview, but if you have a Service cum Repair Workshop inside your establishment and you have outsourced this job to a contractor then the employees engaged will be covered under PF and you as the Principal Employer will be responsible.
In the first case the employees of the Service Centre is there not specifically engaged for your job only but for many such Companies. The test is whether an employer employee relations exist under the Contract Labour (regulation and Abolition) Act, 1970. If the answer is "Yes" then PF coverage will be attracted and if "No" PF coverage is not under your purview
Regards,
SC
From India, Thane
All.
I believe what he has answered is right and we do follow the same.
And the number of contract employees on your establishment can be below 20 if the total number of employess on cotractor's payroll is altogether 20 or more including all other employees on other establishments by the same contractor.
Great response.
Suresh Deshpande.
From India, New Delhi
I believe what he has answered is right and we do follow the same.
And the number of contract employees on your establishment can be below 20 if the total number of employess on cotractor's payroll is altogether 20 or more including all other employees on other establishments by the same contractor.
Great response.
Suresh Deshpande.
From India, New Delhi
Dear Aby
for checking the PF detail you may ask the contractor to submit the Wages sheet showing the PF No. and deduction & that can be verified with challans.
As per CL Act he should prepare the Register of Wages cam Muster Roll in Form XVIII. In this form you may ask contractor to add one column after Sl No. for showing the PF Nos and ask him to show the PF deduction in deduction column.
Verify the Wages sheet before disbursement of wages, Wages disbursement must be witnessed by Principle Employer.
N N Tiwari
From India, New Delhi
for checking the PF detail you may ask the contractor to submit the Wages sheet showing the PF No. and deduction & that can be verified with challans.
As per CL Act he should prepare the Register of Wages cam Muster Roll in Form XVIII. In this form you may ask contractor to add one column after Sl No. for showing the PF Nos and ask him to show the PF deduction in deduction column.
Verify the Wages sheet before disbursement of wages, Wages disbursement must be witnessed by Principle Employer.
N N Tiwari
From India, New Delhi
Hello,
The best way to sort this problem is to Hand over the compliance part some companines who will give a complete status weather a comliance is made or not with a remark , If you are interested then our company "Human Empower" provide such expert services under contract labour act,
Further details contact our Director Mr. Chandrakant Vishwakarma his cell no. is 9820592842 or mail us :
Regards
Human Empower
From India, New Delhi
The best way to sort this problem is to Hand over the compliance part some companines who will give a complete status weather a comliance is made or not with a remark , If you are interested then our company "Human Empower" provide such expert services under contract labour act,
Further details contact our Director Mr. Chandrakant Vishwakarma his cell no. is 9820592842 or mail us :
Regards
Human Empower
From India, New Delhi
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