Dear team,

Please help with a clarification. I am a transporter for a manufacturing company. My labor is working there, and their ESI and PF are being paid by my consultant under his code. Now, the manufacturing company has asked me to obtain a labor license.

If I obtain the labor license, and my consultant continues to pay ESI and PF under his code, will it have any impact on me in the future?

Thank you.

From India
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Dear Team,

Please help in one clarification. I am a transporter for a manufacturing company. My labor is working there, and ESI and PF are being paid by my consultant under his code. Now, the manufacturing company has asked me to obtain a labor license.

If I obtain the labor license and my consultant continues to pay ESI and PF under his code, will it have any impact on me in the future?

Thank you.

From India
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It appears that you are a contractor, and your consultant is a sub-contractor. Basically, employees are deployed through the consultant (sub-contractor) who complies with PF & ESI. Hopefully, employees are entering the manufacturing premises through a gate pass issued in favor of your organization.

There is no issue in the above arrangement. You may take a labor license - there is no harm. However, there are principal employers who ask the sub-contractor also to take a labor license as all compliance is done by the sub-contractor. In that case, the sub-contractor will also be required to take a labor license after obtaining Form-V from the principal employer.

S K Bandyopadhyay (WB, Howrah)

Email: skb@usdhrs.in

From India, New Delhi
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