Epf registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 A debt recovery agent employed 20 persons to collect loan EMIs. He is paying only commission to them on the basis of number of EMI collected . Now my question is whether he is liable to registered under EPF law since he employed 20 person or there are not such requirement as he is paying only commission to them ?

Please suggest and if possible provide case law in this regard.

ND (Expert)
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09 January 2018 Firstly there should not be any employer-employee relationship between Debt recovery agent and those persons. There should be agreements under which they will be payable commission . Thus it will be a contractual agreement. As such there is no PF implication. However if this agreement continues for more than 90 days then they will be treated as employees only and PF registration will be applicable. Alternatively the agreements should be of short term, there should be gap among the agreements and TDS under contractor or commissions should be deducted.