I am Pavan. I am employed in the construction industry within the oil and gas sector. I possess a labor license and engage contract labor through a subcontractor. These subcontractors are registered under PF and ESI. I seek advice on whether it is permissible to make wage payments through our subcontractor using a wage format under the name of Technip India Ltd. The subcontractor would then deposit PF and ESI contributions as per the wage sheet in accordance with the CLRA, PF, and ESI acts. Additionally, they would provide us with a copy of proof of submission.
From India
From India
Please clarify whether PF & ESI are deposited by the subcontractor in its name or your name. Does the subcontractor have a valid labor license and PF & ESI registration?
Assuming that the subcontractor is an independent entity without these registrations, it is legally acceptable for the subcontractor to pay wages and deposit PF & ESI dues in your name. However, this practice may lead to a situation where laborers could claim to be your employees, providing solid evidence against you.
From India, Mumbai
Assuming that the subcontractor is an independent entity without these registrations, it is legally acceptable for the subcontractor to pay wages and deposit PF & ESI dues in your name. However, this practice may lead to a situation where laborers could claim to be your employees, providing solid evidence against you.
From India, Mumbai
Dear Sir,
A subcontractor is registered under PF and ESI but has not obtained a labor license. The labor license is in our name. Wages are prepared in our name (principal contractor) and the subcontractor's name is also mentioned. Wages are paid by the subcontractor through the bank, and PF/ESI contributions are deposited in the subcontractor's registration. These are then submitted to us against the bill.
Is this arrangement legal as per the act? Please clarify.
From India
A subcontractor is registered under PF and ESI but has not obtained a labor license. The labor license is in our name. Wages are prepared in our name (principal contractor) and the subcontractor's name is also mentioned. Wages are paid by the subcontractor through the bank, and PF/ESI contributions are deposited in the subcontractor's registration. These are then submitted to us against the bill.
Is this arrangement legal as per the act? Please clarify.
From India
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