Pf act applicability and liability of deduction in case of contract labour.
bhabagrahi nayak
(Querist) 10 January 2014
This query is : Resolved
Dear Sir/Madam,
I have the following queries with respect to Provident Fund and Miscellaneous Provision Act, 1952.
1. Whether PF and miscellaneous provision Act, 1952 is applicable in case of contract Labour?
2.If Applicable then who is liable to deduct Pf contractor or Principal Employer?
3.Against whom department can take action in case of non compliance of the act if any?
Kumar Doab
(Expert) 10 January 2014
Yes.
Contractor and in case of default Principle Employer.
EPFO.
Sudhir Kumar, Advocate
(Expert) 11 January 2014
1. Whether PF and miscellaneous provision Act, 1952 is applicable in case of contract Labour?
Ans : Yes : See section 2 of the Act.
2.If Applicable then who is liable to deduct Pf contractor or Principal Employer?
Ans : Both. In case contractor absconds after default the amount can be recovered from Principal employer.
3.Against whom department can take action in case of non compliance of the act if any?
Ans : Regional Provident Fund Commissioner in whose jurisdiction (i) employee worked (ii) employer is having head office (iii) contractor is having head office.
Advocate. Arunagiri
(Expert) 11 January 2014
The employer who is paying the wages, is responsible for pf deduction and will be liable for penal action in case of non compliance.
Rajendra K Goyal
(Expert) 11 January 2014
Well advised by the experts, agree to it.
prabhakar singh
(Expert) 13 January 2014
I agree with only Mr. Sudhir Kumar who has dealt with all consequences.
