Dear All,
I am an Electrical Contractor working on a Project Lump Sum Basis in setting up factories and sometimes in temporary repair/upgrade work at running factories. I employ fewer than 20 people, and the work is always of a temporary nature at a site.
a) Am I supposed to register under ESI or PF Acts and pay ESI/PF?
b) Does my client have any right to deduct any amount towards ESI/PF? (given the work is at project sites and temporary)
Thank you,
Varun
From India, Faridabad
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I am an Electrical Contractor working on a Project Lump Sum Basis in setting up factories and sometimes in temporary repair/upgrade work at running factories. I employ fewer than 20 people, and the work is always of a temporary nature at a site.
a) Am I supposed to register under ESI or PF Acts and pay ESI/PF?
b) Does my client have any right to deduct any amount towards ESI/PF? (given the work is at project sites and temporary)
Thank you,
Varun
From India, Faridabad
Acknowledge(0)Amend(0)
Dear All,
I am an electrical contractor working on a project lump sum basis, setting up factories and sometimes involved in temporary repair or upgrade work at running factories. I employ fewer than 20 people, and the work is always of a temporary nature at a site.
A) Am I supposed to register under the ESI or PF Acts and pay ESI/PF?
B) Does my client have any right to deduct any amount towards ESI/PF? (Given the work is on project sites and temporary)
Thank you,
Varun
From India, Faridabad
Acknowledge(0)Amend(0)
I am an electrical contractor working on a project lump sum basis, setting up factories and sometimes involved in temporary repair or upgrade work at running factories. I employ fewer than 20 people, and the work is always of a temporary nature at a site.
A) Am I supposed to register under the ESI or PF Acts and pay ESI/PF?
B) Does my client have any right to deduct any amount towards ESI/PF? (Given the work is on project sites and temporary)
Thank you,
Varun
From India, Faridabad
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1. Sir, both the ESI Act of 1948 as well as the EPF & MP Act of 1948 define the term "employee" by including persons engaged through contractors or immediate employers. These enactments also empower principal employers to deduct the contributions due from payments to said contractors/employers.
2. Under the ESI Act of 1948, you can obtain separate registration (code number) if you have at least the minimum number of persons employed as required under section 1(5) of the Act. The minimum number of such requirement may vary in certain states like Maharashtra, etc. However, even if you have fewer than the minimum number of employees, compliance is still required.
3. Although PF is applicable at all locations, depending on the nature of the factory/establishment as specified under section 1 of the Act, the coverage of the ESI Act of 1948 is limited to "implemented" areas only under section 1(3) of the Act. You can obtain details of such implemented areas from the nearest ESIC office.
From India, Noida
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9652. Under the ESI Act of 1948, you can obtain separate registration (code number) if you have at least the minimum number of persons employed as required under section 1(5) of the Act. The minimum number of such requirement may vary in certain states like Maharashtra, etc. However, even if you have fewer than the minimum number of employees, compliance is still required.
3. Although PF is applicable at all locations, depending on the nature of the factory/establishment as specified under section 1 of the Act, the coverage of the ESI Act of 1948 is limited to "implemented" areas only under section 1(3) of the Act. You can obtain details of such implemented areas from the nearest ESIC office.
From India, Noida
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Under the existing laws, every principal employer is responsible to ensure that PF and ESIC are paid for all employees, including contract workers. Therefore, irrespective of the number of employees working for you, they need you to pay the PF and ESIC.
So, they have two options. Either you get a registration voluntarily, or they deduct the amount and pay for your employees on their code. So, they would be right in deducting the same from your bill.
When you negotiate your contracts, you should make it clear that the company should pay the PF in addition to your lump sum fees and not deduct from it. Or you increase the lump sum to account for the difference. Registering for PF and the subsequent compliance is a big pain and best avoided.
From India, Mumbai
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So, they have two options. Either you get a registration voluntarily, or they deduct the amount and pay for your employees on their code. So, they would be right in deducting the same from your bill.
When you negotiate your contracts, you should make it clear that the company should pay the PF in addition to your lump sum fees and not deduct from it. Or you increase the lump sum to account for the difference. Registering for PF and the subsequent compliance is a big pain and best avoided.
From India, Mumbai
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