Thread Started by #snlakshmiin

Pls advise to what extent the Principal employer is liable for any default by a contractor in remitting PF. In our case, we have retained part of the contractors fees, and instructed the contractor to collect the balance on producing the EPF / ESI remittance challans as proof of payment. the contractor in his response to the notice from the labour department has informed that we hold the PF contribution of his employees basis which the labour department has sent us a notice to remit the same. What we have retained is not the PF contribution but part of the contractor's fees. Are we liable to pay to the labour department and if we so, can we get it reimbursed by the contractor. Members opinion solicited
18th January 2011 From India , Madras
Your query is not clear as labour department does not have any relation with contractors payment. However if contractor employees has not got payment than they can claim from principle employer through labour dept. You have all the right to hold contractor payment till he produces ESI/PF proof .ultimately you as a principle employer are responsible for ESI/PF payment
19th January 2011 From India , Delhi
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