• Transport contractor are covered for PF or not if we have only 4

We are transport contracter of steel company for transportation of their raw materials from mines to factory and we we have only four staff in our firm and we deploy around 200 trucks daily from outside of different truck owners we pay trip basis payment to truck owner ,so we will covers for PF or not because we pay transporting charges to truck owners ,we do not pay wages to their drivers & conductor, we have not employed them ,we engaged only trucks so pleased will liability of PF Will fall on us or not
Asked 8 years ago in Labour

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7 Answers

employee provident fund scheme applies to all companies or establishment, which employs 20 or more employees

2) since you have 4 employees only you would not fall within the ambit of EPF schme

Ajay Sethi
Advocate, Mumbai
97224 Answers
7850 Consultations

your organisation does not fall within ambit of EPF schme

Ajay Sethi
Advocate, Mumbai
97224 Answers
7850 Consultations

1. Since you engage the trucks as contractors and truck drivers are not under your pay roll you are not liable for PF contribution for them.

2.Only the full time employees drawing monthly salary from you come under your PF obligations.

Devajyoti Barman
Advocate, Kolkata
23277 Answers
516 Consultations

Hello

1) The liability of having to pay PF will not bind you as long as those employees are not directly employed by you and are contract laborers employed by the respective truck owners.

2) It is advisable to draw up a tripartite agreement involving the concerned three parties to keep you indemnified against such liabilities and clearly define the roles of each party involved.

S J Mathew
Advocate, Mumbai
3596 Answers
175 Consultations

Hi

If you hire drivers, cleaned or assistants on contract basis you are not liable for PF and other statutory benefits for a normal employee.

If you are dealing for per truck the agreement bins you only on the total charges not on individual driver/worker.

To ensure your safety, it is better to have a written agreement contact with owners or drivers for per load which will take care of your deal legally. Make simple format of agreement mentioning contract of hiring vehicle per for load nd get it signed once you start a deal with every owner/driver, can also include the driver cleaner charges

Thresiamma G. Mathew
Advocate, Mumbai
1645 Answers
212 Consultations

Since you have not employed anyone directly and all the transport workers including load men and drivers are the employees of the respective truck owners, you need not be bothered about the PF amount or any privileges that can be given to them.

It is the responsibility of their employer and not the contractor.

Your role confines to payment of charges as per the contractual agreement.

T Kalaiselvan
Advocate, Vellore
87426 Answers
2348 Consultations

Please reply

Please refer to the reply given in my previous post.

Your liability is to the extent of paying the contractual amount alone and not extended to PF or any other payments to the workers engaged in the task.

T Kalaiselvan
Advocate, Vellore
87426 Answers
2348 Consultations

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