Responsibility of provident fund compliance of Contractor’s

Employees
As per Section 2(f) of PF Act, 1952, Para 30 and 36B of EPF Scheme liability/responsibility to deduct and deposit the
amount of provident fund in respect of contractor’s employees lies absolutely upon the principal employer.

If a contractor is not covered under the PF Act, 1952, e.g. those having less than 20 employees or due to any other
reason, the Provident fund contribution of contractor’s employees will be deposited under code number allotted to Principal
Employer otherwise Regional Provident Fund Commissioner’s office (RPFC) will recover the PF & EDLI contribution,
administrative charges of contractor’s employees and interest @ 12% p.a. and damage @ 17% to 37% p.a. from the
Principal employer (in case of belated remittance).

If Company makes an agreement with a contractor, in which contractor’s employees regularly come to Company, for or in
connection with the work of the Company, whether they work inside or outside the premises of the Company, responsibility
for deduction and depositing provident fund dues of contractor’s employees lies on the Principal Employer, If provident fund
contributions of contractor’s employees are not being deposited by contractors under PF code number allotted to them.

CONTRACTOR’S EMPLOYEE includes

 Security,
 Housekeeping,
 Pantry,
 Cafeteria,
 Maintenance,
 Manpower,
 Horticulture,
 Travel Services (including daily pick and drop services by employer to employees
through travel agency
i.e. Cab facility) etc.

Principal Employer means a person for whom or on whose behalf any contract labour is engaged
or employed in an establishment.

The principal employer is the real master of the business. He has real control over of the business. He is held
liable because he exercises supervision and control over the labour employed for and on his behalf by
contractor.

To comply with the requirement of the PF Act 1952, we need to specify the number of contractor’s
employees in monthly return.

Hence, we need the details of number of Contractor’s Employees.

Depositing of PF for contractor’s employees under code number of Principal Employer creates various
practical problems, hence to avoid any complications, Please inform all the concerned
departments/employees of the said Rule and advice not to appoint any such contractor(s) and
contractor’s employees for the work of the Company, who are not covered under the PF Act,
1952.

Please collect details of contractor’s employees in “Questionnaire for contractor’s employees and verify
the following to avoid aforesaid damage, interest and legal proceeding under the PF Act, 1952

Make Sure
  All contractors are covered under the PF Act, 1952
 PF of all the contractor’s employees, who are working for your company is being
deposited by contractor(s) on regular basis
 PF deduction is made on minimum wages as per the Minimum Wages Act, 1948

Questionnaire for contractor’s employees

To Dated
________________

(company name )

Dear Sir/ Madam,

Sub: Submission of details of contract employees deployed with (company name )for the
Month of ________________

1. Name of the contractor

2. Office Address with PIN code

3. Mobile No. of the contractor

4. Off. Phone No. (with STD code)
5. Off. Fax No. (with STD code)
6. E-mail ID
7. Nature of service provided to (company name ):
8. Contractor’s PF code no.
9. Region where covered under the EPF and MP Act, 1952 & Compliance is made

10. No. of employees deployed with(company name ): TOTAL :

(1) Male ______ (2)
Female_______
11. Whether PF of all the employee(s) working for Nokia India Private Limited
is/are deducted on minimum wages rates, if not, give details/reasons.

The details furnished above and documents enclosed are true and correct
to the best of my knowledge and belief. It is clearly understood that I am
liable for legal action in case of furnishing false information or failure to
disclose any material information.
 For (Name of the Organisation)
Signature of Contractor (Name, Designation & Stamp of the Establishment)

Enclosed: - Certified true copy of following details / documents

I. Details of Employees (Name, PF No., ESI No., Basic Pay, PF & ESI amt.
deposited)

II. Current month attendance sheet of all the employees working in or for

III. Previous month acknowledged monthly PF & ESI challan of remittances

IV. Previous month acknowledgement for submission monthly return (Form No. 12A,5,10)

V. Annual Return in Form 3A/ Form no. 6A

(Acknowledged copy of the covering letter submitted to the PF office to be
given.)