Esi and pf

This query is : Resolved

Ali (Querist)
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28 October 2017 Dear Expert,

We are a small private company providing basic service of management of installation of furniture to retailers after the civil work is complete.

We do not have any installer as an employee and only two people as staff with salary above 20K. We give work contract to others for the same and basically manage their working.

The normal duration for each site varies between a week to three weeks with 4-5 hired freelance installers. Once the work is complete, the installers are paid and free to work any where else.

We charge to our principal clients with squarefeet of area work is to be done and not be manpower. Sometime work is handled by 2 people in 15 days sometime work is done by 5 people in 3 days depending upon the timelines agreed with our customer.

"Question is are we liable for their ESI and PF for these hired installers?"

Please do confirm with reference of the ESI and PF laws

Regards

Hassan

CA Ysil Karunai

CA Ysil Karunai (Expert)
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28 October 2017 1. If the employee engaged in any days of the year is less that 20, the provision relating to registration of ESI & EPF is not applicable.Provided the salary limit within in the ceiling as mentioned in provisions.
2. It includes all employees engages like, casual, contract, hired etc.,

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Ali

Ali (Querist)
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28 October 2017 Dear Ysil, Thanks for the reply. However still the question is the contractual hired installers are working for us for some days and working else where some days. We try to repeat same workers as they have learnt what is required to be done. So in this case what is the resolution? We don't pay them a salary , instead we pay them by square feet of work done.

Please do share your thoughts.

Thanks

Hassan

CA Ysil Karunai

CA Ysil Karunai (Expert)
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28 October 2017 1. If you considered this payment as a contract payment, then there should be proper evidence to be obtained like Bill/ Tax Invoice from contractors you engaged. or
2. If you considered this payment as labour payment then you're liable for ESI & PF registration.
Nature & Form of payment is irrelevant
3. But check your eligibility 20 employees limit during the year on any day.

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