Sir,
We are registered under the Factory Act, having PF and ESIC registration. We have 4 labor supplier contractors at the Palghar food processing factory. We pay salaries as per the Minimum Wages Act, deducting PF, ESIC, MWLB, PT, etc., as per prescribed guidelines under applicable law.
Recently, we appointed a new CA. He advised us, "Why are you paying such a significant amount under PF, ESIC, MWLB, etc.? It would be better if you appoint each person as an individual contractor to save a substantial amount."
Is it possible? Can we appoint each unskilled worker, skilled worker as a contractor? If yes, how? What is the impact under PF, ESIC, GST, IT law?
Regards
From India, Mumbai
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We are registered under the Factory Act, having PF and ESIC registration. We have 4 labor supplier contractors at the Palghar food processing factory. We pay salaries as per the Minimum Wages Act, deducting PF, ESIC, MWLB, PT, etc., as per prescribed guidelines under applicable law.
Recently, we appointed a new CA. He advised us, "Why are you paying such a significant amount under PF, ESIC, MWLB, etc.? It would be better if you appoint each person as an individual contractor to save a substantial amount."
Is it possible? Can we appoint each unskilled worker, skilled worker as a contractor? If yes, how? What is the impact under PF, ESIC, GST, IT law?
Regards
From India, Mumbai
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Wrong. Foolish advice. Making a mockery of labor laws. How can workers become contractors? Ten workers become ten contractors. Please don't believe such half-knowledge data. Follow the normal procedure. Save labor rights; don't invite trouble.
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From India, Nellore
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Is there anything else you need help with?
From India, Nellore
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