Applicability of ESI & PF to the employees of Client

This query is : Resolved 

03 September 2021 Please make me understand the below query;

As mentioned in my previous query, we are providing payroll services to our client who is Distributor of Electrical goods.

Since from the commencement of this payroll services employees are not registered under ESI & PF act (for the employees to whom we are processing payroll)

My question is who will be held responsible for this compliance issue, principal employer or Vendor?

03 September 2021 Principal employer is responsible.


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