Hemanth Ranka. 30 May 2018

Provident fund liability in case of outsourced services

Whether the principal employer is liable to provident fund and state insurance of the security guards deployed through an outsourced agency or the immediate employer(the outsourced service provider) is liable? Please clarify

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4 Replies

R.Ramachandran (Advocate) 30 May 2018

Section 2(f) of Employees Provident Funds and Miscellanous Provisions Act, 152 provides as under:

(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,-

(i) employed by or through a contractor in or in connection with the work of the establishment;

Now, I think, you will be able to interpret dispassionately and arrive at a conclusion.

Kumar Doab (FIN) 30 May 2018

Similar queries have been discussed in many threads articles that you can search thru SEARCH option e.g;

https://www.lawyersclubindia.com/forum/Legal-consequence-if-esi-not-paid-on-gross-wage-180643.asp

Article under my profile;

Principal Employer is not responsible for PF Contributions of Contract Workers

Kumar Doab (FIN) 30 May 2018

Let the legal cell of establishment or very able senior Lvbor Law Consultant/Law from engaged by establishment opine on matter and draft agreements ....