Pf applicabbility

As per Section 30 of the Employees Provident Funds Scheme, 1952 “X” Company should, in the first instance, pay both the contribution payable by himself and also, on behalf of the member employed by him directly or by or through third party company. However, if the third party company is an independent entity which undertakes such works and are independently registered under the Act and takes such work from various organization then it will have to be contended that they are independent organization which is independently covered under the Act. It will also have to be shown that the said third party completed the work at their own premises/offices at different locations than that of the “X” Company.

As per provisions PF&MP Act, X company is the "Principal Employer" of the employees engaged by the company( Say Y) for whom the job is out-sourced.

If the Y company is having registration under PF Act and the proof is shown to the PF authorities to the extent that they are recovering and pay PF,it is all right,other wise X is responsible as "Principal Employer" for PF implementation by Y.

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