My company hires EPC contractor (engineering procurement and construction - EPC) to supply material and built rooftop solar power plant for my company. My company is registered under PF and we pay PF regularly. My company is not registered with ESIC. Our EPC contractor has 5 employees only on payroll and not registered with PF. The EPC contractor gets labour to built the solar power plant from a sub-contractor. The sub-contractor has 10 employees on its payroll. Will the EPC contractor and sub-contractor register and pay PF and ESIC? If yes, will my company be responsible for the PF and ESIC?
Yes, both the contractor an sub contractor are bound to pay PF and ESIC.
In default of the payment on such account by the contractor and the sub contractor you are liable to make such payments.
So instruct or seek papers form your contractor as proof of payment of such statutory deductions.
Your company is no way responsible for your contractor' responsibility towards EPF and other statutory requirements.
Any establishment in which ten or more persons are employed or were employed on any day during preceding 12 months shall come under EPF and other statutory employee benefits rules.
Sub contractor is liable to make PF ESIC deduction if any applicable not your company. PF not applicable in this case as employees less than 20. And ESI Act does not apply to the workers employed by contractors.
For 5 employees it's not compulsory
subcontractor will not enable them to apply for registration under PF or ESI act.
You are not liable to pay PF and ESIC if sub contractor doesn't pay it to his employees.
The payment towards PF and ESIC are the responsibility of the employer.
you are not the employer for the labors working under the contractor.
The contractor who deployed his men for the purpose shall be held liable for any such thing because you have entered into a contract with the contractor for this specific task on the conditions thereon.
In my opinion you may not be held liable even for the vicarious liability.
The contractor and the sub contractor are the employers for the men working under them, hence it will become their responsibility on all such issues.
