Out sourcing epf liability

Narender Raj Gubba (Querist) 13 March 2012 This query is : Resolved
The company engaged out sourcing agencies for security purpose. The EPF authorities counted those persons and passed orders by saying that the company reached the statutory limit of 20-persons. The question is:-- the persons working for out sourcing agencies can be clubbed to ascertain the total number of employees or not.

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Deepak Nair (Expert) 13 March 2012
Sorry, could you please clarify the question a little more??

Guest (Expert) 13 March 2012
If outsourcing is as a part of a contract by agreement, and the company does not draw salary of any such employee of the contractor in its own pay rolls, the strength of employees of the contractor/ agent is not liable to be counted in the strength of employees of the company. However, the company would be liable to see whether the contractor complies with the provisions of EPF & MP Act, if total strength of contractor's employees falls within the scope of the minimum limit of employees.

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