chetan_kapadnis
4

Hi, I am civil contractor and I give contract to my subcontractor to build building ,shops etc. He bring labour(on temporary basis) and complete work from them. How should I register for PF and ESI If I have only 4-5 permanent workers. Please guide me.
From India, Pune
chetan_kapadnis
4

Thank you Mrugen,
but I have to elaborate the question that, if he brings labor on seasonal basis (there is no confirm employee on payroll) then in this situation how to get registered under PF and ESIC.
Regards
Chetan

From India, Pune
saswatabanerjee
2395

I thought the minimum number for esic was 20
Cheetan, please read the relevant acts.
There are rules defining seasonal industry (construction does not generally come under it)
Even for seasonal industry, pf and esic apply.
If you are working with corporate clients, they will insist on pf payment for all workers, irrespective of size. So you will have to get a pf number for the subcontractor or pay under your code.
In case esic does not apply to your area, please get a workman accident insurance cover. Else in case of accident your liability may be crippling

From India, Mumbai
korgaonkar k a
2556

Dear Mrugen ji,
ESI is applicable when you have 10 and more employees (and not 8) irrespective of permanent, temporary, casual, part time, contractual or contract employee and irrespective of salary limit. This is except in Maharashtra, HP and in Assam.
In Maharashtra, HP and in Assam, ESI is applicable in factory when you have 10 and more coverable employees and in Shops and commercial establishment when you have 20 and more coverable employees.
Employees means employees including of employees of contractors also.

From India, Mumbai
korgaonkar k a
2556

Dear Chetan ji,

You are a civil contractor. You undertake civil work under contract and execute it through sub-contract. You have 4-5 permanent employees.

How many temporary / casual employees you have is not written by you. How many employees your sub-contractor brings is also not written by you.

Your question is, how to register your establishment under PF and ESI?

My answer to your above question is as under:

As regards to PF: PF Act is not applicable to your establishment if you have less than 20 employees whether permanent or temporary or casual altogether including of sub-contractors. But, if you are undertaking a contract work of a developers / builders who is covered under PF Act then you need to cover your employees including of sub-contractors under PF.

In this case, you have following options:

1. to cover your employees including of your sub-contractors under the PF code of the developer / builder; or

2. to get your establishment register under PF voluntarily; or

3. to get your establishment register under PF on having on roll 20 employees including of your sub-contractors.

As regards to ESI: ESI Act is not applicable to your establishment, since you are in civil construction and you have all construction workers. (Also you are in Pune and have less than 20 employees).

But, if you are undertaking a contract work of a developers / builders of covered premises, then it is the duty of developer / builder to cover your / your sub-contractors' employees under the ESI code allotted to him.

If your developer / builder is not agreeing to cover your employees under the ESI code allotted to him and insist that you should have your own code and make it as pre-qualification to get contract work, you have no option....

From India, Mumbai
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