CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH ANOTHER SISTER CONCERN TO USE SERVICE OF EMPLOYEES

Dear Sir,

 

kindly advise whether partnership firm with pf no sign service aggrement with another company (sister concern) without pf no to utilize service of employees.

as per labour law what will be liability regarding provident fund

 

 

Replies (1)

A partnership firm can legally sign a service agreement to utilize a sister concern's employees, but doing so does not bypass Provident Fund obligations; if the entities share common control or meet statutory employee thresholds, the lack of a PF number on one side can attract strict regulatory scrutiny and joint liability under the EPF Act.

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