The company i am currently auditing is in Construction/Infrastructure. They have workers at site who take daily wages and are not working through any contractors as such. They are working and taking wages on a weekly basis from the company. Also as per the management, it is not fixed that the same person will working in one week will work in another week. In such a case, is the liable liable to deduct PF and Esic and compliance with other labour laws. If so, as an auditor what should be my approach.
11 March 2010
In case of PF, Provisions are applicable to the employees or workers whoes payment does not exceed Rs. 6500. If the payment is not exceeding limit you should deduct PF and pay the same
11 March 2010
if compay coverd under EPF & ESI then ita applicable to all employee. ither he works for only one hour. its employer responcebility to deduct EPF & ESI and deposit to department.
11 March 2010
Yes sir,the company is covered under ESIC /PF.. If the management does not agree that deduction has to be done. What should an auditor do.
11 March 2010
try to convence to managment according to law. if he is not agree to pay give para/remark to managment in audit report.so you can make safe side to your self.