Tracking of Contractors EPF Compliances by Principal Employer

CS Lalit Rajput , Last updated: 20 July 2021  
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Employees' Provident Fund Organization (EPFO), India Ministry of Labour & Employment, Government of India has issued and launched an electronic facility for PRINCIPAL EMPLOYERS to view EPF compliances of their contractors.

EPFO has introduced a facility for interlinking of Principal Employers with their respective contract employers for effective compliance.

Principal Employer

In a factory, the owner or occupier or manager is considered a principal employer; but in an establishment or a company, the person who is in control and supervision of the establishment or company will be the principal employer.

In short, a principal employer is the one whose employees labour through a contractor.

Tracking of Contractors EPF Compliances by Principal Employer

Key Features

  1. EPFO, Registered Employer engaging employees through contractor(s) can add the details of contractor(s) & contract employees at EPFO's Unified Portal https://unifiedportal-emp.epfindia.gov.in/epfo/
  2. Principal Employer (PE) not registered with EPFO can register on Unified Portal to receive Login / Password to add details of their contractor(s) & Contract Employees.
  3. On Adding Contractor's details, Principal Employer (PE) can view through their Login the employee wise remittance made by contractors through ECR.
  4. Principal Employer (PE) can now ensure that their contractor(s) enroll all contract workers and remit EPF contributions through ECR.
  5. It will enhance the coverage to extend provident fund benefits to eligible employees.

Facility to tighten the Compliance Norms & Vigilance Mechanism

This application is an online facility available on the website of EPFO for the Principal Employers to upload work orders/outsourced job contracts/contract workers related information directly with a motive to provide an effective e-governance system in the compliance set up and enhance the coverage to extend provident fund benefits to eligible employees.

Process of Registration of Contractor's Details

  1. Registration of Principal Employers as
  2. a) Establishments already registered or
  3. b) Government Organizations / Institutions / Departments not registered
  4. Enter the details of Contract Employers
  5. Completion of data entry related to contract employers by Principal Employers.
  6. Once an employer adds the contractor(s) details, employee-wise remittances made by the contractor(s) through the electronic challan-cum-return (ECR), can be viewed.
 

Kindly note that

  1. For regular EPFO subscribers, the regulatory body has made checking of balance easier from the comfort of home.
  2. EPFO subscribers can do so using four different ways --check PF balance using SMS, online, missed call and UMANG App.
 

Source:  https://twitter.com/socialepfo/status/1358645865435463682

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

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Published by

CS Lalit Rajput
(Company Secretary)
Category Corporate Law   Report

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