ESIC AND PF LIABILITY

Mr A(owner) has taken labor services from a company(contractor) under a fixed contract. A fixed amount is being paid to the contractor monthly.  Now when it comes to the ESIC and PF liability of the labor, will the responsibility fall on Mr A or the contractor?

Replies (1)

As per the Employees' State Insurance Act, 1948 (ESI Act), the employer is responsible for registering the employees and paying the ESIC contribution for them. In this case, the contractor is the employer of the laborers and is responsible for registering them and paying their ESIC contribution.

Similarly, as per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act), the employer is responsible for registering the employees and paying the Provident Fund (PF) contribution for them. In this case, the contractor is also responsible for registering the laborers and paying their PF contribution.

Therefore, it is the contractor's responsibility to ensure that the laborers are registered with ESIC and PF, and the contributions are paid on time. If the contractor fails to do so, Mr. A may be held liable for any non-compliance issues arising out of the contractor's negligence. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
26 September 2026
Chartared Accountant

pushpganga ventures

Pune

CA

View Details
Company
29 September 2026
Work at home

Lottery.sambad.tv

Bhopal

Others

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details