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V.RAJESHWAR (Advocate)     18 October 2011

Pf contribution

Dear members

 

Your comments on following issue is urgently required. 

 

we have engaged X company for providing armed guards for a period of one year.  however said company after accepting the contract has deployed unarmed guards initially and requested time for deploying armed guards. As security was our concern, we have granted time. when the x compnay failed to deploy armed guards even after one month, we have terminated the contract. Since to ensure  security, we have utilized the guards deployed x company for two months 13 days till the new contract is awarded to Y company. X company has neither opened their PF accounts nor made any payment to the guards. As principal employer we are make the payment for two months 13 days. But how about the PF contribution. Whether we can pay the same to the guards directly  or do we have to deposit the same in their new accounts opened by the Y company. Kindly advise.  



Learning

 5 Replies

VIJAYAKUMAR (Asst.Manager Lega)     18 October 2011

Dear Rajeshwar,

If it is new company, PF  is not registered, then instruct them to get PF number as early as possible as otherwise you can refuse to clear the entire payment bill.

Before entering into an agreement with contractors like security, we should ensure by adding Statutory compliance clause in the agreement stating that if the statutory compliance is not met with 100% then the agreement will be terminated and the statutory contributions will be deducted in the payment.

If you are not able to get PF number from the contractor, then you can deduct the ESI and PF payments from contractor and pay to the ESI and PF department in your own company account number  in  "MISCELLANEOUS' head. 

During ESI and PF inspection, the respective inspectors questioned you regarding the proof of payment you can show the challan which you  paid under 'MISCELLANEOUS' head.

VIJAY

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     19 October 2011

Vijay kumar is right

Anishram P (Personnel Officer)     20 October 2011

I would like to add one more point, even if the principal employer collected the copy of payment challan of PF & ESI monthly contribution, it has to be cross checked with amount paid and PF & ESI contribution and get the Form 3a & 6a accordinlgy. The liability is finally rest with the Principle employer only.

 

Regards

 

Anishram

Ajay Kumar Jha (Advocate)     20 October 2011

Whether PF is to be deducted on the re-employement of a retired people?

SURESH GODBOLE (ADVOCATE)     28 October 2011

The question is who is the Employer

 X company has a contractor . Now the Contractor is the Employer and charges X company as a Gross yearly or monthly amount  which includes the serivices being rendered by the Contractor then X  Company  has no liability to pay the employee and deduct the salary . But if the Payment to these gaurds were made by the X company itself , then they are liable directly to the Guards .

  Depends on the facts , Consult an expert.


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