Rama mohan Acharya (Manager HR(Legal)) 18 January 2011

PF & ESI applicability in contract workers working in the to

There is a factory with its own township.A contract is to be awarded for wiring and other electrical work in some residences. The contract does not specify any thing regarding employment of no. of manpower.My querry is will it attract the provisions of the ESI Act? I understand the Act applys to the factory & other establishment. The town ship is not the factory nor in the premises of the factory. It is situated just adjacent to the factory. Kindly advise.
Also kindly advise whether in the same situation the PF Act is applicable?

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KB Prakash (service) 18 January 2011

there may be chances that, it will come under the ambit of EPF & MP Act, 1952 under Section 1 3(b) of the Act. You have not specified whether the factory is engaged in which activity ? and whether the township has anything todo with the primary activity of the Factory. As per my knowledge your establishment can be covered under PF Act under head "Building & Construction" and it will attract the provisions of ESIC also. for further enquiry you can visit epfindia.gov.in to get clarifications

Rama mohan Acharya (Manager HR(Legal)) 19 January 2011

Thanks Mr. prakash. The factory is a manufacturing industry. The company provides residential accomodation to its employees in its town ship. The workm assigned to the contractor is to make certain electrical wiring in the residences. The work includes supply and installation of appliances lile switches, plug.wire etc.