YOUR LEGAL DUTY

1.If your establishment employees 20 and above employees (whether regular or temporary or hired by or through a contractor) and the establishment falls under the notified category as specified in Section (1) of the EPF & MP Act, 1952, the Act becomes applicable to your establishment on its own and you do not require any legal notice from the department. Therefore, subject to the above conditions, the day employees strength in your establishment becomes 20 or more, you are required to submit the coverage proposal to the office and get the establishment registered.

2.Even if you have outsourced certain activities to one or more contractors, you remain responsible for the workers hired by these contractors for compliance under this Act. Please refer to Section 8(A) of the Act and Para 30 of EPF Scheme.

3.Section 8(A) of the Act empowers you to deduct the amount of contribution to be paid in respect of employees hired by or through these contractors from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

4.Para 30 clause no. (iii) stipulates that it shall be the responsibility of the principal employer to pay both the contribution payable by himself in respect of the employees directly employed by him and in respect of the employees employed by or through a contractor and also administrative charges.

5.You are required to enrol every employee of your establishment whether they are regular or temporary. Often the establishment commits blunder in assuming that they have to extend membership to regular employees only.

6.In no case, employers share can be deducted from wages of member whether directly or indirectly.

7.When a new employee joins your establishment you are required to enquire whether he has been a member of the fund and in case it is so, you are required to extend the membership to the employee even if his pay is above Rs. 6500/- (Pay means his basic wages plus DA plus retaining allowances if any and cash value of food concession).

8.If the new employee states that he has not been a member of the fund then you are required to take a declarat