Dear All,
We are a manufacturing unit based in Kolkata. We have issued some job work to some contractors. One of them is from outside Kolkata having a PF code of Maharashtra. Contract labors under that contractor are raising their objection in case of deduction of PF. According to them as the Contractor is having a code outside the state so they will not allow them to deduct the PF contributions and demanding Sub Code for Kolkata. We as PE have already tried to discuss this with Unions about such illegal demand and tried to convince them on the issue of non-availability of PF sub-codes (as per act it is not viable) but the contract labors are adamant on their demands as they have got strong support of local unions.
Can anyone suggest me on the same and guide me a feasible solution?
Rgds..
DG
From India, Calcutta
1We are a manufacturing unit based in Kolkata. We have issued some job work to some contractors. One of them is from outside Kolkata having a PF code of Maharashtra. Contract labors under that contractor are raising their objection in case of deduction of PF. According to them as the Contractor is having a code outside the state so they will not allow them to deduct the PF contributions and demanding Sub Code for Kolkata. We as PE have already tried to discuss this with Unions about such illegal demand and tried to convince them on the issue of non-availability of PF sub-codes (as per act it is not viable) but the contract labors are adamant on their demands as they have got strong support of local unions.
Can anyone suggest me on the same and guide me a feasible solution?
Rgds..
DG
From India, Calcutta
Dear DG.
Since the demand is illegal but for a better IR situation we need to arrive at a solution. So its my suggestion to you is that ask your contractor (Maharastra Code) to sub-contract the job (only labour part) to a local contractor who is having a Kolkata Code and ask them to deduct the PF contribution of all the workers in the code of sub-contractor. The only concerned in this solution is the Overhead/profit % to the sub-contractor.
Regards,
Jawed Alam
From India, Dhanbad
Since the demand is illegal but for a better IR situation we need to arrive at a solution. So its my suggestion to you is that ask your contractor (Maharastra Code) to sub-contract the job (only labour part) to a local contractor who is having a Kolkata Code and ask them to deduct the PF contribution of all the workers in the code of sub-contractor. The only concerned in this solution is the Overhead/profit % to the sub-contractor.
Regards,
Jawed Alam
From India, Dhanbad
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Revised online process for issue of PF code from 1.12.2015.pdf