Provident funds
mouraly
(Querist) 06 February 2013
This query is : Resolved
I am an advocate and also I am a PF Consultant.
My client running a business, he has his our employees and also he is giving some work outside his premises, like home based stitching or trailering work. very specifically telling that the employer has no control or no supervising over that trailers. my client have below 20 numbers of employees. MY QUESTION is my client establishment is not coming under PF coverage. whether I have to contribute those workers like tailers without my supervising. In ESI it is exempted, In PF I need detailed explanation with suitable case laws or provisions.
Raj Kumar Makkad
(Expert) 06 February 2013
You are an advocate dealing in PF matters so you might be having full knowledge of the employee provided in section 2 (f)of EPF & MP Act, 1952 which reads as under:
“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;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;
So, keeping in view of the definition as given above, if those persons (tailors) are not employed directly or indirectly and if they do only job work of many person including your client then your client has no liability of EFP towards them.
There are many judgments to this effect but do some labour at your end also and search those from ww.indiankanoon.org
mouraly
(Querist) 06 February 2013
Sir
I am agreeing your points,
My doubt is those tailors are taken materials from my client's company and doing work at their home alone. there is no group of employees. Those tailors are not controlling or supervising by my client. My client giving some specification of style or design of tailoring. whether I have to cover those tailors under Provident funds act?
Sudhir Kumar, Advocate
(Expert) 07 February 2013
PF Act doe snot require the worker to be supervised by the employer. The Act also does not require the workers to be working at the premises of the employer.
Such tailors are piece rated employees. Coverable.
Outsourced employees are supervised by Principal Employer
H.M.Patnaik
(Expert) 07 February 2013
Law in this regard is rightly quoted by Mr. Makkad.It is for the applicant to decide what is applicable in in his own situation. He can get in touch with the officer in charge of help desk of the local P.F. office to go ahead in the matter.
Jitendra Prasad
(Expert) 07 February 2013
I am really impressed Mr. Makkad.
Only one point to be shared...
Who is paying the wages .. is responsible for the act of PF & ESI.
As well as your Clint is also not covered under ESIC Act.
Then I suggest, Please update your client and convince him for coverage.
Tx
Raj Kumar Makkad
(Expert) 07 February 2013
Thanks friends for sharing your views.
mouraly
(Querist) 07 February 2013
thank you very much for all the experts.
