We engage 5 to 6 job contracts for a few works which are not on a daily basis. We engage only on a need basis. Maybe, in a month, 15 to 20 days, we may have to engage job contractors. We do not pay any wage to them, and we only pay the agency according to the work that is accomplished.
I would like to know whether EPF is mandatory for such job contracts.
From India, Pondicherry
Acknowledge(0)
Amend(0)
1I would like to know whether EPF is mandatory for such job contracts.
From India, Pondicherry
Acknowledge(0)Amend(0)
Hi Ranga,
Your requirement could be seen as a 'job/piece contract,' and you, as a Principal Employer, have to look into your contractor who supplies these laborers and their obligations under the CLRA Act. Though you may not 'directly' pay them wages, as a Principal Employer, it's your duty to ensure their wages fulfill obligations under the Minimum Wages Act, the Payment of Wages Act, and the EPF Act as well, if applicable. If your contractor enlists 10 persons anytime in a year, he is liable to comply with EPF formalities and contribute. The main contention is they are working within your premises, which will determine what actions you need to take.
From India, Bangalore
Acknowledge(0)Amend(0)
Your requirement could be seen as a 'job/piece contract,' and you, as a Principal Employer, have to look into your contractor who supplies these laborers and their obligations under the CLRA Act. Though you may not 'directly' pay them wages, as a Principal Employer, it's your duty to ensure their wages fulfill obligations under the Minimum Wages Act, the Payment of Wages Act, and the EPF Act as well, if applicable. If your contractor enlists 10 persons anytime in a year, he is liable to comply with EPF formalities and contribute. The main contention is they are working within your premises, which will determine what actions you need to take.
From India, Bangalore
Acknowledge(0)Amend(0)
Yes, it is mandatory if your organization is covered under the PF Act. Your contractor may not be covered under the PF Act, but as the employees are working at your premises, you as PE have to comply. If there is no PF Code for the contractor, then you have to comply through your Code. If the invoice of the contractor is not bifurcated into material cost, labor cost, etc., then the PF authority may charge PF on the entire invoice. It is always better to engage people through contractors who are complying properly.
Thanks & Regards,
S K Bandyopadhyay (WB, HOWRAH)
From India, New Delhi
Acknowledge(0)Amend(0)
Thanks & Regards,
S K Bandyopadhyay (WB, HOWRAH)
From India, New Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Online payment of PF mandatory from 1.1.2016.pdf