Dear Sir,

In our organization, we have given contract work for bagging, loading, and unloading to about 40 members of hamalis. The contract has no license, PF code, or ESI code. Is it the responsibility of the Principal Employer to pay the PF & ESI? And hamalis are not fixed names - is their applicability for PF & ESI? Please clarify, sir.

From India, New Delhi
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Responsibility for PF & ESI Contribution in Contract Labour Arrangements

In the context of the Andhra Pradesh Contract Labour Act 1970, it is crucial to understand the responsibilities of the Principal Employer regarding PF and ESI contributions in contract labor scenarios. Here is a breakdown of the key points:

- [Icon representing attention] License, PF Code, and ESI Code Absence: In the situation described, where the contract workers do not have a license, PF code, or ESI code, it becomes the responsibility of the Principal Employer to ensure compliance with the relevant labor laws, including PF and ESI contributions.

- [Icon representing legal reference] Legal Obligations: As per the Contract Labour (Regulation and Abolition) Act, 1970, and respective state rules, the Principal Employer holds the responsibility for ensuring PF and ESI compliance for contract workers engaged in the establishment.

- [Icon representing clarity] Hamalis and PF/ESI Applicability: Even though hamalis are not fixed names, if they meet the eligibility criteria specified under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and the Employees' State Insurance Act, 1948, they are entitled to PF and ESI benefits.

- [Icon representing action] Steps for Compliance:
- Obtain necessary licenses and codes for the contract workers.
- Register the contract workers for PF and ESI contributions.
- Deduct the applicable PF and ESI amounts from the wages of the contract workers and contribute the employer's share as per the regulations.

- [Icon representing location] Local Variations: It is advisable to also consider any specific state-level regulations or notifications that may impact PF and ESI contributions in Andhra Pradesh, as labor laws can sometimes have regional variations.

Ensuring compliance with PF and ESI regulations not only protects the rights of the contract workers but also safeguards the interests of the Principal Employer from potential legal liabilities.

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From India, Gurugram
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