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CA Tarannum Khatri (ca in practice)     25 May 2013

P.f. and esi registration for labour contractor -urgent

HELLO SIR/MAM,

I have the client who is labour contractor having 40 labours. He wants to apply for labour license. Should he register in epf and esi ?? Is it mandatory?? what will be the consequences if he doesn't get registeration in epf and esi?? chalta hai kya?? Can i show the labours less than 20 for not getting registered in epf and esi??



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 18 Replies

M.S.R.Murty ( Manager (Admn))     25 May 2013

Dear Mr.Khatri,

Yes, it  is mandatory.  If your client not provided ESIC as well as P.F facilities to the labourers, their princple Company should provide those facilities.  Hiding of information and showing less people in records is a crime. 

Sudhir Kumar, Advocate (Advocate)     25 May 2013

registeration is mandatory and default is crime.

 

you said "Can i show the labours less than 20 for not getting registered in epf and esi??"

 

this foprum does not cooeprate of encourage frauds

 

CA Tarannum Khatri (ca in practice)     27 May 2013

suppose principal employer provides epf and esi facilities to labours. then should he register in epf and esi??

CA Tarannum Khatri (ca in practice)     27 May 2013

from where can it get challan for payment of deposit fee for labour license?? can any one guide me for registration in epf and esi??

M.S.R.Murty ( Manager (Admn))     28 May 2013

Dear Mr. Khatri,

If the priniciple employer provides ESIC & PF facilities then, the labourers treated to be working under principle Company.  For Registration purpose and all, your client should visit Labour Office in your location

Sudhir Kumar, Advocate (Advocate)     28 May 2013

whether it is Principal empl;oyer ro contractor the labour must of regist ered Non-compliance is punishable

 

if your intention is to comply then you get all challas etc from PF office and even online.

CA Tarannum Khatri (ca in practice)     29 May 2013

ok. from where can i get challan for payment of security fees  for getting labour licenise?? and for p.f. registration i only fill the form ..or any other procedure?? in one column Details of bank draft amounting to the contribution. plz give me some information regarding it...thank you.
 

Kesavaraor (HR)     30 May 2013

Dear Sir,

We have registered ESI from April 2013 and started deducting 1.75% from employee  (15 to 20 employees) and 4.75% from employer and depositing online to ESI account.  Actually we were giving an Health Insurance policy about Rs.2,00,000/- (Rs. Two lakhs) per annum per employee for their safety from the beginning of the company last 2 years. The ESI inspector may be visiting to inspect our past records of last 2 years with a view to ask  us to pay the past ESI  arears eventhough we have not deducted from the employees. 

Please suggest me how can I convince the ESI inspectors.

Thanks

Kesavarao

HR & Admin

sachin agarwal (lawyer)     31 May 2013

dear friend, as per provisions of the Provident fund and insurance the scheme for the employee it is necessary to register the employees before the appropriate authority by way of filling some forms and make compliance as per schedule.  It is the duty of the principal employer to check all the records in respect of the employees of the contract that the contractor has registered his employees before the appropriate authority and maintain their status updated before the authority.  Otherwise not only the principal employer but also the contractor be penalised before the appropriate authority.  So as per my view opinion it is necessary to register all the employs by the contractors before the appropriate authority and maintain the record and deposit the dues as per prescribed period before the appropriate authority.  It is necessary to the contractor to take the licence of his contract ship and make it updated.  As per my view opinion if you show the employees are less than 20 then you can come out from the problem of the provident fund but the employs insurance will also applicable upon the less than 20 employees.  However various times the employers take the chance to show the employs less than 20 and get the relief instantly from the provident fund and insurance fund but ultimately when the enforcement officer and any other officer who is authorise from the provident fund commissioner office may inspect the records and take the evidence on the spot.  Then The enquiry will conduct and the penal damageswill be levied under section 7A and 14 B of the act.  So my suggestion is that you should register all the employees and maintain the records of the employee and always inform to the principal employer in respect of the maintenance of the records of the employees for the provident fund and insurance funds before the authority. Sachin Agarwal advocate, you can make any query on 92010625938

sachin agarwal (lawyer)     31 May 2013

 hello Sir, if you want to register all the employees before the authority in respect of the provident fund and insurance fund first get some forms than fill the forms and deposited the same before the appropriate authority.  What is the appropriate authority if you want to know then first you know your office for the provident fund and insurance fund, that is where there is the contractor has registered and Gives adviceTo your contractor that maintain the records and deposited the dues as per provisions of the act.  If the principal employer is interested to pay the provident fund and insurance dues than it is the contract who should deposit the same before the appropriate authority and not get ride of from that the deposition.  If any help from me then you can call to me on this number that it is 9210625938 Sachin Agarwal advocate.

sachin agarwal (lawyer)     31 May 2013

Hello Sir, I understand your problem, in that case however you have insured your employees through private company.  Mary ask a question that there is any policy to get right of from the provisions of law which are applicable to all the employees who are working under the company or any concerned.  However you have deposited regularly the insurance scheme payment but it is only for the benefit of the employee. But in this case you cannot say that I am ensuring my imployees privately so there is no need to register the employee before the insurance scheam.  Once you have taken the registration number than thereafter you cannot get ride of his duties as per provision of law.  It is very good that you are aware about the health and wealth of his imployees and paying your attention in respect of the insurances scheme but you should deposit your dues before the appropriate authorities otherwise they will start the proceedings against you because of the Provident fund and insurance fund is Separate scheme from theany private the scheme which will have taken for the benefit of employees And maintain your records updatedIt is my personal opinion for you. for any query you can contact me on 9210625938 Sachin Agarwal advocate

Kesavaraor (HR)     06 June 2013

Hello Sachin sir,

A clarification is requested on ESI :

We just registered ESI from April 2013 and started depositing online and i am not sure whether the employees (15 only) are willing to utilise the ESI hospital facilities or not.

We started the company in January 2011 with 20 people (online marketing) and paying Health Insurance for Rs.2 lakhs (two lakhs each). 90% of people left too as of now.  When the ESI inspector comes to inspect the records, is that needed to account and pay the ESI contribution from the begining of our company, which we have not deducted from employees.  I mean is to say  is whether it is needed to see "retrospectively" or can we proceed from April 2013 onwards. Please advise.

Thank you sir.

Hari (AGM)     20 May 2015

Dear Sir,

Can you once again clarify the following points as I am not clear with certain points.

1) Is PF , ESI & Group insurance mandatory for a construction contractor keeping less than 20 workers for a work having contract period of 90 days or less

2) If the wages of the labour is more than 6500 / pm but the number of workers is lessthan 20, then still PF, ESI, Group insurance required?

3) If the above points are not applicable, then is it required to maintain labour Muster roll records for random audits by PF officers?

Regards

Hari

 

Sudhir Kumar, Advocate (Advocate)     22 May 2015

1) Is PF , ESI & Group insurance mandatory for a construction contractor keeping less than 20 workers for a work having contract period of 90 days or less

 

compulsory to register with PF  and ESI if on any day he has employed 20 or 10 days respectively.  Th respective act will continued to apply even if the strengtrh falls short on subseqeunt day.

2) If the wages of the labour is more than 6500 / pm but the number of workers is lessthan 20, then still PF, ESI, Group insurance required?

 

It is only basic and DA which is relevant. Before 6th PC 6500 basic pay was attributable only to GAzetted Officers of Govt.

3) If the above points are not applicable, then is it required to maintain labour Muster roll records for random audits by PF officers?

Yes


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