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Pf for attached vehicles

Vennila (HEAD-FINANCE) (34 Points)

03 November 2014

Hi,

A company (Eg:A) is entering into contract with transport company for providing employee transport. The transport company in turn will enter into contract with several vehicles - as "attached vehicles" to provide this service. The transport company now claims that they are not liable to pay PF/ESI for the drivers since they pay the vehicles on contract and no salary is paid to them! Is their claim correct? Will the company A held liable for PF liability in any event? Can anyone explain?

Thanks in advance

S V

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4 Replies

Shri Shri (Professional) (629 Points)
Replied 04 November 2014

Originally posted by : Vennila
	Hi, A company (Eg:A) is entering into contract with transport company for providing employee transport. The transport company in turn will enter into contract with several vehicles - as "attached vehicles" to provide this service. The transport company now claims that they are not liable to pay PF/ESI for the drivers since they pay the vehicles on contract and no salary is paid to them! Is their claim correct? Will the company A held liable for PF liability in any event? Can anyone explain? Thanks in advance S V

My view is that there is no employer-employee relationship exists nor payment under wages are being paid. The transport contractor is just engaging the drivers for service and there is no avenue for applicability of PF.

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Sunil S Nair (Advocate & Legal Consultant) (66 Points)
Replied 04 November 2014

Yes rightly put but better check for agreement between the Vechical owner and other attached vehicles see if:

1] Salary of the Drivers who shall be liable to pay

2] In case of unforseen circumstanses who eg: Accidents who shall be liable to drivers as well as the employees

3] Drivers liability for negligence during the course of his employment who shall be liable wheather the contractor or someone else.

dinesh (article assistant) (34 Points)
Replied 04 November 2014

Both the views above are correct

Ravi Chandra R (Analyst) (34 Points)
Replied 04 November 2014

While in the case of agreement if the transport company is paying the pf for drivers . No need of paying any pf for attached vehicles. Otherwise company has to pay on behalf of transport company.