I am a transport contractor. I have taken a tender from the Food Corporation of India to supply trucks from the godown to the railhead for food grains. My contract is solely for transportation. Whenever there is a special request, I have to supply the trucks.
I am hiring trucks from the truck union and sometimes I have to hire trucks from the market as well, for which I have paid per kilometer charges to the truck union or to the owner of the vehicle if hired from the market. I have no direct relationship with the truck driver. Payment is made directly either to the truck union or to the owner of the truck, as the case may be.
Now, my question is whether there is any Employees' State Insurance (ESI) liability that arises for me regarding the truck driver. The ESI department mentioned verbally that on the transportation charges paid, they will consider 15% to 22% of the total charges as the driver's labor.
From India, Ludhiana
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I am hiring trucks from the truck union and sometimes I have to hire trucks from the market as well, for which I have paid per kilometer charges to the truck union or to the owner of the vehicle if hired from the market. I have no direct relationship with the truck driver. Payment is made directly either to the truck union or to the owner of the truck, as the case may be.
Now, my question is whether there is any Employees' State Insurance (ESI) liability that arises for me regarding the truck driver. The ESI department mentioned verbally that on the transportation charges paid, they will consider 15% to 22% of the total charges as the driver's labor.
From India, Ludhiana
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Yes, very nice query. Eye-opening labor situation... perverted malafied practices of contract labor. Futile trial for escaping responsibility of engaged labor in India.
OK, let's come to the point. Whenever you have entered into the above contract to supply trucks, all the truck drivers, cleaners, and other staff have become your employees automatically. You feel that trucks are inanimate things. What is this ESIC, etc.? Labor laws attract me. It's a well-known fact that trucks won't move without drivers, cleaners, and all related staff. Why do they work for your gained contract work? Once you paid indirectly truck owners temporarily or continuously, you should be treated as the sole contractor for all workers. It is clear.
You may understand it like this: all those sub-suppliers of trucks through your name, amounts received from you are subcontractors of you. They should maintain and be answerable to all labor laws implementation, but the sole burden lies on you. If they fail, you are directly responsible as long as you engage any single truck and use it for the above contract, sir. Please note that you should also be responsible under WC act (EC act).
From India, Nellore
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86OK, let's come to the point. Whenever you have entered into the above contract to supply trucks, all the truck drivers, cleaners, and other staff have become your employees automatically. You feel that trucks are inanimate things. What is this ESIC, etc.? Labor laws attract me. It's a well-known fact that trucks won't move without drivers, cleaners, and all related staff. Why do they work for your gained contract work? Once you paid indirectly truck owners temporarily or continuously, you should be treated as the sole contractor for all workers. It is clear.
You may understand it like this: all those sub-suppliers of trucks through your name, amounts received from you are subcontractors of you. They should maintain and be answerable to all labor laws implementation, but the sole burden lies on you. If they fail, you are directly responsible as long as you engage any single truck and use it for the above contract, sir. Please note that you should also be responsible under WC act (EC act).
From India, Nellore
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Your ESI inspector has only verbally told you that you may be assessed, and there is no official communication. Now the situation being a contract for service, there is no applicability of the Contract Labour (Regulation and Abolition) Act, and as such, your bill cannot be assessed for payment of ESI. Your agreement with FCI is not to supply drivers who will drive the vehicles/trucks owned or taken on lease by the FCI but to transport the goods in return for a charge, which is purely based on the kilometer or tonnage and has nothing to do with how much you pay the drivers by way of wages. This is just like an employer having a contract with a taxi cab provider or a restaurant for supplying tea and snacks for the employees.
Here the travel agent or the restaurant person is selling his goods or service, and the employer is just BUYING it. On the other hand, if the arrangement is that we have a few cars and we take the drivers from an agency and utilize their service and pay the agency an amount which will include the drivers' wages and an element of margin for the agency. In the same way, suppose the restaurant person is engaging a few of his workers in your premises and they make tea and snacks with the milk, rice, ghee, and other materials you provide and using the facilities within your premises, then the arrangement is for a contract with the restaurant person for the supply of manpower. In these cases, the provisions of the CLRA Act will be applicable, and ESI and PF will be payable on the amount of labor charges that you make.
From India, Kannur
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Here the travel agent or the restaurant person is selling his goods or service, and the employer is just BUYING it. On the other hand, if the arrangement is that we have a few cars and we take the drivers from an agency and utilize their service and pay the agency an amount which will include the drivers' wages and an element of margin for the agency. In the same way, suppose the restaurant person is engaging a few of his workers in your premises and they make tea and snacks with the milk, rice, ghee, and other materials you provide and using the facilities within your premises, then the arrangement is for a contract with the restaurant person for the supply of manpower. In these cases, the provisions of the CLRA Act will be applicable, and ESI and PF will be payable on the amount of labor charges that you make.
From India, Kannur
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In such a situation, it applies only when the transport contractor provides the names and other details to the service recipient under Form XIII. Instead of providing names and details of the person driving, only the DL number and Vehicle number should be used to avoid this situation. If, on any specific or concurrent day, the sheet's manpower strength exceeds 20, it automatically falls under the relevant labor laws.
For cab hire, we only hire a single driver. However, Ola and Uber cannot deny liability if the driver service is provided by them. They require the cab owner to sign, making them liable if any such situation arises in the future. Additionally, they do not provide bulk cars to a single corporate entity without ensuring compliance with their formalities.
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For cab hire, we only hire a single driver. However, Ola and Uber cannot deny liability if the driver service is provided by them. They require the cab owner to sign, making them liable if any such situation arises in the future. Additionally, they do not provide bulk cars to a single corporate entity without ensuring compliance with their formalities.
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Under the transport service, most of the drivers are owners of the vehicle or have fewer than 4 vehicles under a single person's name. As a result, they are exempt from certain liabilities. In contrast, a train driver and TTE are permanent employees of Indian Railways, and their labor liabilities are fulfilled.
A syndicate serves as a communication link between the fleet owner and the person hiring the fleet; they do not play a role in discharging labor liabilities. With the introduction of the GST concept, if a transporter wishes to benefit from GST exemption, they must comply with labor law formalities. Otherwise, they must be covered under GST and charge/pay GST. This is because a fleet owner with more than 20 workers should ensure that their gross turnover per annum is not below the GST exemption limit.
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A syndicate serves as a communication link between the fleet owner and the person hiring the fleet; they do not play a role in discharging labor liabilities. With the introduction of the GST concept, if a transporter wishes to benefit from GST exemption, they must comply with labor law formalities. Otherwise, they must be covered under GST and charge/pay GST. This is because a fleet owner with more than 20 workers should ensure that their gross turnover per annum is not below the GST exemption limit.
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I agree with Madhu Ji. There is no direct relationship with the truck driver and you (as a transport contractor). Neither the drivers are under your supervision, controlled, monitored, or paid by you. You have nothing to do with who is driving the vehicle. No driver or truck has been fixed for this complete process nor the end service provider. Along with that, you claim your payment from FCI and pay the end service provider a per km rate.
There is no labor-related liability arising.
From India, Ambala
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There is no labor-related liability arising.
From India, Ambala
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