ESI APPLICABLE FOR AMCs & SUBCONTRACTORS

tc baskaran (Querist) 16 October 2008 This query is : Resolved
1. We are having subcontractors who will do our parts machined outside (without our supervision) and supply to us. Some of them are having ESI registration and some of them are not. Also please note that they are having number of customers.

2. We have covered Annual Maintenance Contract for maintenance of our machinery and computers. They do not have ESI registeration.

For the above two subjects, Whether Principal Employer should cover / pay the ESI contribution or not necessary. Please clarify.

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Manish Singh (Expert) 21 October 2008
since you are principal employr, you shall be bound to discharge duties under labour laws if your contractor does not obey t but you can successfull recover it from the contractor afterwards.

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