Dear FRIENDS,
our company is in a problem relating to liability of esic and pf contributions. The company is currently employing around 300 employees. The problem is that the company have larger section of unskilled employees or labour earning small income. The employees earning wages or salary of around Rs. 5000 to Rs. 6000 are not agreeing to sign the forms of esic and pf because they don't want esic and pf to be deducted from their salary as they get a very less amount after all deductions. And also there are some employees who work only for 1 or 2 months and leave the job, these is causing serious problems to the company as all the contribution of the company is also wasted along with the employees as they leave the job. The company has also employed workers through contractors like security guards. Now as per esic it is the company liability to deduct esic of the contract workers also and as per pf it is the contractors liability to deduct pf but the contractors is not able to deduct the pf from the workers and the company have to bear the liability. Pls suggest some solution according to esic and pf act. Are there any exemption or rule for solving the above problem.
CAclubindia
