Epf by contractors employer.
MOHIT TIBREWAL
(Querist) 07 July 2015
This query is : Resolved
If a contractor is having 7 employees against a certain contract with PSU, is he liable to deduct EPF against the 7 employees as per PF act.
The numbers of employee is below the minimum requirement as per PF act. However, PSU is not releasing bills as EPF not deposited for mentioned 7 employees.
Kumar Doab
(Expert) 07 July 2015
The Principle employer is right.
MOHIT TIBREWAL
(Querist) 07 July 2015
APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
1. Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
2. Employing 20 or more persons .
3. Cinema Theatres employing 5 or more persons.
The 7 employees are under payroll of contractor who is performing a contract work with PSU. Why will he be liable to EPF even if he has below 20 employees. Please inform the notification/section.
Kumar Doab
(Expert) 07 July 2015
No notification. NO section.
I won't share anything even if I have.
PF/ESIC are part of social security and the responsible employer can provide these voluntarily that can't provide these to employee's that fetch him revenue and profit is as per me, Unfit/Unworthy.
Without anything be it a notification/section the Principle employer that has granted the contract has to defend his interest/liability.
The contractor may give up the contract and look for contract from somewhere else.
The EPFO may still ask for registration and registration may be as low as Rs.7/month.
The contractor is at liberty to visit nearest PF office and meet the officials PRO/APFC/RPFC etc..............
MOHIT TIBREWAL
(Querist) 07 July 2015
I appreciate the BIG talk, however reply in line with ACT is as below:
The work by contract worker in carried out in establishment i.e. PSU which is covered under PF act. As the principle Contractor is cover by PF act the contractor in bind to pay EPF to the workers.
Please copy paste the mentioned reply instead of BIG talks.
Thanks & Regards.
