recovery of money
anshul sangal
(Querist) 09 October 2009
This query is : Resolved
What are the conditions when an employer are entitled to recover the money contributed from contractor under Employees Provident funds and miscellaneous act 1952
KUMAR JAGADEESAN
(Expert) 09 October 2009
I understand from your quesry that the contractor has failed to deduct and pay the PF for his immediate employees. As per the PF Act the Principal Employer is legally liable to contribute and he is also empowered to deduct the same ( both employers and employees contribution) from any outstanding bills. The contractor can not dispute it.
J.KUMAR
Hyderabad
A K CHANDOK
(Expert) 11 October 2009
I agree with Mr.Kumar. Principal Employer is liable 4 compliance of its contractor ee,s. however if contractor is having his own code no. , responsibility lies with contractor also depending upon the merit of the case, terms and conditions of contract etc.pl. read Para 29,30,32,36,36-B,etc.etc. There are various judgments on this issue .pl. go through Supreme courts decisions.
