ESI AND PF ON CONTRACT LABOUR
If Firm who employes four persons as full time managers and rest of the work force is supplied by 5 contractors who have 7 to 8 employees each under them i.e. the firm gets around 30 employees from these contractors. Is there any liability to pay ESI and PF on firm. The contractors I believe are not covered under such laws as there employees are around 7-8.
Resources employed on contract basis are also considered as labour of the employer. Firm employing resources on contract basis will be considered as labour of the firm.
Incase number of resources crosses 20, firm has to pay PF on behalf of labours. Section 2(f) of PF act, 1952 explains the definition of employee.
2(f) employee means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of and establishment, and who gets his wages directly or indirectly from the employer, and includes any person:
(i) employed by or through a contractor in or in connection with the work of the establishment;..........
by reading this we understand that for firm, employee would include the resources employed on contract basis.
Also Employers Liability act fixes the liabilities of temporary work force on the employer.
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