Humbly seek ur expert advice... matter: epf for firm with less than 20 employees.
ARP
(Querist) 22 December 2014
This query is : Resolved
Dear Sir,
Please allow to introduce myself as a Civil Contractor based in Pune.
I have been working with a reputed Construction Company of Mumbai for past one year.
Recently the Principal Employer has made it mandatory for all the Contractors to get registered under EPF act.
However my proprietary firm employes less than 20 employees directly or indirectly. On any given day the no of workmen of the site are less than 20 including the supervisory staff. We fail to understand that when the law does not compel us to register under EPF act, can the Principal Employer compel us to do so???
Please advice.
Thanking you in anticipation,
Regards,
A
Devajyoti Barman
(Expert) 23 December 2014
You need not register under EPF Act under current circumstances.
Shailesh Kumar Shah
(Expert) 23 December 2014
employees of the principal employer and your employees would be more than 20. In that case, you have to register under epf act or change principal employer.
ARP
(Querist) 23 December 2014
Dear Mr. Shah
We thank you for your time.
It is true, the total employee strength is way beyond 20. However may we ask the PE to deduct the PF from by RA bills and make the payments under his PF code so we do not have to register at present.
Regards,
A K CHANDOK
(Expert) 23 December 2014
Though the PE can not compel the contractor to have PF Code number but Contractor can have the code no. U/s 1(4) as voluntary coverage in order to continue/ renew the contract. Here in this case, it's good that contractor has agreed to allow PE to deduct and deposit the contributions of his employees under the code of PE as statutorily, PE is bound to report compliance under the Act in R/o of contractor employees also .
