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Ramesh Dere (Compliances)     03 August 2011

Pf & esi liabiilty against self employed contractor

Hi All,

A private limited company having more than 500 employees appoint self employed person / contractor to carry on AMC, repair works ect.

Does company has PF & ESI liability for such self employed person / Contractor.

Please site case law if any

Thanks in advance

 



Learning

 3 Replies

V. VASUDEVAN (LEGAL COUNSEL)     04 August 2011

Yest. Please go through the provisions of the PF & ESI website where it is clearly set out. Where the Contractor has no PF/ESI Registration, it is the principal employer, who is liable. Even if the Contractor has the registrations, the principal employer has to obtain proof of remittance along with the regular invoices before payment.

vasudevan

Ramesh Dere (Compliances)     05 August 2011

Hi Vasudevan,

It mean a company which is registered with ESI & P.F. should not deal with contractors /  selfemployed persons not having or registered with ESI & P.F. registration.

Right

K.S.Srinivas (Advisor (HR))     05 August 2011

If the contractor fails to recover the epf contributions and remirt the same in the bank, the obligation is with the principal employer.


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