Please respond to the following queries:
1. If an organization is registered under the EPF (that is > 20 employees) and employs contractual employees from a contractor which is not registered under the EPF, to work exclusively for my organization, am I liable to contribute the PF for such contractual employees?
2. If an organization is registered under the EPF (that is > 20 employees) and employs contractual employees from a contractor which is not registered under the EPF, to work not exclusively for my organization, am I liable to contribute the PF for such contractual employees?
Thanks
From India, New Delhi
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1. If an organization is registered under the EPF (that is > 20 employees) and employs contractual employees from a contractor which is not registered under the EPF, to work exclusively for my organization, am I liable to contribute the PF for such contractual employees?
2. If an organization is registered under the EPF (that is > 20 employees) and employs contractual employees from a contractor which is not registered under the EPF, to work not exclusively for my organization, am I liable to contribute the PF for such contractual employees?
Thanks
From India, New Delhi
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Hi,
If an organization is covered under EPF and employs contractual employees from a contractor which is not covered under the EPF, the liability of PF contribution for those employees lies with the principal employer for whom the employees are working.
Thanks,
Sumit
From India, Ghaziabad
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256If an organization is covered under EPF and employs contractual employees from a contractor which is not covered under the EPF, the liability of PF contribution for those employees lies with the principal employer for whom the employees are working.
Thanks,
Sumit
From India, Ghaziabad
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Whether the contract employees work exclusively or not, the principal employer has to pay PF in the first instance on behalf of the contractor and deduct the amount paid from the sum payable to the contractor. Once the contract is over, the workers cease to be members, and therefore, they can avail themselves of withdrawal or transfer of funds as if they were regular employees.
Regards,
Madhu T.K
From India, Kannur
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Regards,
Madhu T.K
From India, Kannur
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As per Section 2f of the EPF Act 1952, the term "employee" also includes employees of the Contractor. Further, as per paragraph 30 of the Employee Provident Fund Scheme, it is the duty of the Principal employer to pay both the contributions payable by the employees employed directly or employees employed through the Immediate employer. Hence, in your case, the EPF is payable to the workmen of the Immediate employer who are working in your establishment, whether the Contractor is working exclusively for your organization or not.
Regards,
Ravi
From United States
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Regards,
Ravi
From United States
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Hi,
If contractors do not have their own registration under the PF Act and the principal employer is covered under the PF, then it is the principal employer's responsibility and liabilities to cover the contractual workers. It is also a financial liability.
Thanks,
Makumakarand.s@rediffmail.com
From India, Vadodara
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If contractors do not have their own registration under the PF Act and the principal employer is covered under the PF, then it is the principal employer's responsibility and liabilities to cover the contractual workers. It is also a financial liability.
Thanks,
Makumakarand.s@rediffmail.com
From India, Vadodara
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Hi Ravi/ Madhu. thanks for the reply... but tell me something in that case an employee woulf have multiple PF account numbers coz he could be working for multiple principal employers thanks
From India, New Delhi
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From India, New Delhi
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As per Section 2f of the EPF Act 1952, the term "employee" also includes employees of the Contractor. Further, as per Paragraph 30 of the Employee Provident Fund Scheme, it is the duty of the Principal employer to pay both the contributions payable by the employees employed directly or employees employed through the Immediate employer. Hence, in your case, the EPF is payable to workmen of the Immediate employer who are working in your establishment, whether the Contractor is working exclusively for your organization or not.
Regards,
Virender
From India, Delhi
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Regards,
Virender
From India, Delhi
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A contract employee need not have multiple EPF account numbers. He can have one number to which the contributions can be sent by different principal employers. As per scheme 36-B, a contractor is required to furnish every month, latest by the 7th, the details of the recoveries to be made from each employee employed by him with the principal employer. Accordingly, the remittance shall be made.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Hi Madhu,
Thank you, and I understand that. However, in case the contractor is not registered under the EPF (that is with <20 employees), then the employee employed by him would not have an EPF code. In that case, the principal employer would have to open the code of the contractor labor. In this case, the contracted employee would have multiple codes if he is working with multiple principal employers at a time or otherwise.
Regards
From India, New Delhi
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Thank you, and I understand that. However, in case the contractor is not registered under the EPF (that is with <20 employees), then the employee employed by him would not have an EPF code. In that case, the principal employer would have to open the code of the contractor labor. In this case, the contracted employee would have multiple codes if he is working with multiple principal employers at a time or otherwise.
Regards
From India, New Delhi
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Employer cannot compel employees to open salary act in its bank - Kerala HC 14.3.2017.pdf