Labour Contract
Ranga
(Querist) 04 July 2011
This query is : Resolved
A company engages workers through a contractor, weekly payments are made to the contractor and distributed to laborers through individual vouchers. Company deducts TDS and pays ESI/PF. Since the amount is paid to the contractor, for distribution to his workers, is it necessary to contribute for ESI/PF? if the contractor has not registered his workers, who are casuals and no worker works for more than 3 months? If the company maintains individual vouchers contribute to ESI/PF TDS applicable?
Ranganathan
Kirti Kar Tripathi
(Expert) 04 July 2011
Once employees are engaged through contract in a establishment, the compliance all statutory provisions are mandatory. Thus contributions of PF/ESI is mandatory. It is immaterial who deposit contribution. The principal employer himself deposit contribution or through contractor. Ultimately it is the responsibility of principal employer to ensure compliance. The Contract Labour (Regulation & Abolition) Act specifically provide provision for maintenance of records, which includes maintenance of register of workmen and and payment made to them.Thus payment made through voucher is not permissible under the Act.
A K CHANDOK
(Expert) 05 July 2011
The opinion given by Sh.Tripathi is legally correct. However under EPF&MP Act, contributions are to be made on all voucher payments also in r/o eligible employees.It is for the Principal Er. to ensure compliance before releasing payments, by way of asking list of employees deputed with the work of Pr.Er.,copy of challans showing P.F Contributions deposited in r/o such ees.
Chandok
ex-RPFC
soumitra basu
(Expert) 15 July 2011
It is immaterial whether the payment was made through voucher or register. P.f../ESI have to be deposited for all eligible employee
