If the contractor under an agreement is doing our work at his own or rented premises, that does not belong to us. Is ESI applicable in that matter or not?
From India, Delhi
From India, Delhi
It depends on the contract and the manner in which it is executed and the supervision involved. If the contractor is buying the materials from the market, using his workers to make it and then supply it, there is no master servant relationship between you and the workers of the contractor. But if the contractor collects materials, engagess workers to convert the said materials into finished goods as per your specification, and then supplyss it back to you, then the contractor is said to use his workers exclusively for you. Moreover, when you supply the raw materials, it is expected that there is high degree of supervision by you in each and every stage of its conversion (process of converting the materials into finished product) and therefore, a master servant relationship would be established. In such situation, the contractor will be raising an invoice for the labour service only. Then it will become your responsibility to ensure that the workers who work for you are paid salary in time, at the rates not below the statutory minimum wages fixed by the government and are given protection of social security like ESI and EPF. In the former case, obviously, the contractor will be raising a SALES bill.
From India, Kannur
4248From India, Kannur
If it is a job order and the contractor is doing many other jobs of same / different nature then no ESI will be attracted.
So far I can remember there is one Apex court verdict for Bidi worker that it is extension of premises when the contractual workers are manufacturing Bidi at their premises and only manufacturing Bidi for one PE , the PF & ESI both will be applicable.
One motor garage where many cars from different sources are coming will not be covered under PF & ESI.
But the individual contractor will be covered under PF & ESI through contractor's code if applicable .
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
So far I can remember there is one Apex court verdict for Bidi worker that it is extension of premises when the contractual workers are manufacturing Bidi at their premises and only manufacturing Bidi for one PE , the PF & ESI both will be applicable.
One motor garage where many cars from different sources are coming will not be covered under PF & ESI.
But the individual contractor will be covered under PF & ESI through contractor's code if applicable .
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
The contractor with the help of his family doing the almond’s de-shelling work, the raw material is provided by party to contractor, contractor is using its own resources for doing work and send the finished goods to party.
The contractor is doing the same work for other parties too.
If a written agreement executed mentioning that party is not responsible for the ESI PF etc.
would it be alright or is there still a responsibility on party for ESI PF etc.
From India, Delhi
The contractor is doing the same work for other parties too.
If a written agreement executed mentioning that party is not responsible for the ESI PF etc.
would it be alright or is there still a responsibility on party for ESI PF etc.
From India, Delhi
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SC 09 ESI IMP on Applicability.p df
Changes in the Applicability and Coverage of ESI Scheme under the Code on Social Security.doc