Applicability of pf & esi provisions on a labour supplier

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This query is : Resolved

Charandeeep Singh (Querist)

06 July 2012 Hello Friends pls guide me on the following,
My company has employed more than 50 labourers through contractors but there are not more than 18 labourers under each contractor.
I want to know whether the contractor needs to comply with the prov. of ESIC & PF or not??
Also whether there can be any sort of legal liability on the company if the contractor does not meet the requirements of ESIC & PF.
Thanks in advance.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

06 July 2012 Dear Friend, It is duty of Principal Employer to comply with PF and ESIC requirements. Since your company has applied 50 labourers through contractors , now it is duty of your company to see the compliance of labour laws. In case of default principal employer is responsible. Thanks

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Charandeeep Singh

Charandeeep Singh (Querist)

06 July 2012 Thanx Deepak Sir for answering.
Sir i still want to know why is it necessary for the contractor to comply with ESI & PF provisions as he has not employed more than 20 workers

Venkattaraman A

Venkattaraman A (Expert)

07 July 2012 Dear Charan

As a principal employer hv registered your firm under Contract Labour Regulation and Abolition Act. You hv to issue form V to the Contractor to be register with the Labour Department. In that how many employees are deployed per day.

It is always safe to insist the contractor to cover under the Act other wise as a Principal Employer you are liable to pay compensation in the event of any Accident resulted in Partial, Total Disablement or death in the course of Employment in case of non coverage by the Contractor.

It is always better to insist the contractor to cover their employees under the relevant Act as applicable to them

Charandeeep Singh

Charandeeep Singh (Querist)

07 July 2012 Thanks Venkattaraman Sir for your kind advice.

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