Labour and esic law

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2014 when a entity to whom esic and pf is applicable , is when they make payment to contractor for renovate his unit and contractor himself is not payning esic to his labour , is a entity is liable to pay the esic ?

why?

pl throw the light in relation to this point .

Ankur Garg

Ankur Garg (Expert)
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22 July 2014 As per section 21 of The Contract Labour (Regulation And Abolition) Act, 1970:

(1) A contractor shall be responsible for payment of wages, PF and ESI etc to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed.

(2) Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed.

(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer.

(4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2014 thank you Ankur for en lighting the knowlege to me .

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Ankur Garg

Ankur Garg (Expert)
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23 July 2014 You are always welcome and keep sharing your doubts here in expert section through the platform of caclubindia.

Regards