One company has 127 employees on the roll, and the company is covered under the EPF act. This company has hired a contractor for 5-6 laborers (sweeper and laborer for the garden). There is no need to have a Labor License under The CL(R&A) Act by the contractor. The contractor has no PF number.
My query is, does the contractor have to get his own PF number? "Y/N". I would appreciate your reply, supported by the section number of the act.
From India, Visnagar
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8My query is, does the contractor have to get his own PF number? "Y/N". I would appreciate your reply, supported by the section number of the act.
From India, Visnagar
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The contractor can opt for "Voluntary Coverage of his Establishment" since their present employee strength is less than compulsory coverage. Thereafter, the contractor can cover their employees.
Alternatively, the principal employer can cover contract employees under their PF code, since the independent contractor does not have a separate EPF code.
From India, New Delhi
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Alternatively, the principal employer can cover contract employees under their PF code, since the independent contractor does not have a separate EPF code.
From India, New Delhi
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Even if the contractor has no PF code, the Principal employer is liable to pay the contribution on his code under PF Scheme 1952 since the contract workers come within the definition of an employee under Section 2(f) of the PF Act.
B. Saikumar
HR & Labor Relations Advisor
Navi Mumbai
From India, Mumbai
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B. Saikumar
HR & Labor Relations Advisor
Navi Mumbai
From India, Mumbai
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Dear Mr. Nrvyas,
Greetings .....
First of all, nature of jobs the Labours are engaged are very much of Perennial nature and the Company is not supposed to engage contract workers for such work. It is contrary to law and would be treated as a punishable crime. Also, if the workers at the end of their Contract Period claims Permanency in the company, a legal forum would definitely award in their favour.
With aforesaid legality as the premises, it would be suicidal for the Company to cover the workers under their PF code as that would be further confirmatory for them to claim permanency of respective services.
It is therefore suggested that the Company Authority must talk and convince the Contractor for opting for "Voluntary Coverage of his Establishment” under PF. In fact, that is the only way out given the situation.
Wishes .....
From India, Pune
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Greetings .....
First of all, nature of jobs the Labours are engaged are very much of Perennial nature and the Company is not supposed to engage contract workers for such work. It is contrary to law and would be treated as a punishable crime. Also, if the workers at the end of their Contract Period claims Permanency in the company, a legal forum would definitely award in their favour.
With aforesaid legality as the premises, it would be suicidal for the Company to cover the workers under their PF code as that would be further confirmatory for them to claim permanency of respective services.
It is therefore suggested that the Company Authority must talk and convince the Contractor for opting for "Voluntary Coverage of his Establishment” under PF. In fact, that is the only way out given the situation.
Wishes .....
From India, Pune
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