EPFO for Contractual Employees: Under the EPF & PB Act, Section 8 makes it mandatory for the principal employer by way of statutory duty to ensure that the contractor discharges all his liabilities towards EPF of contractual staff
EPFO for Contractual Employees: Retirement fund body – the Employees Provident Fund Organisation (EPFO) protects the interest of not just the regular employees who are members of the EPFO, but also of those who are contractual employees or staff.
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The EPFO on its website has categorically stated that it was the duty of the principal employer to ensure that the contractor discharges his liability. The principal employer must allow payment of bills after making sure that the contractor has enrolled and compiled all relevant information in respect of all eligible contract employees, every month.
The principal employer can check the remittances and employee name by using the establishment search option available on its website www.epfindia.gov.in. The path is ‘Our Services’ >> ‘For Employers’ >> ‘Important Links’ >> Establishment Search. The principal employer can also look at remittance and member name.
If the principal employer ensures that all contract employees activates their Universal Account Number (UAN). This will help them keep a tab if the remittance is deposited or now. Just like the direct employees, contractual employees can also avail UAN facilities online after registration and activation.
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What if the contractor is not paying the dues to EPFO?
In order to protect the interests of contractual employees and ensure that the contractor pays his dues to the EPFO for the contract employees, it has laid down clear provisions.
Under the EPF & PB Act, 1952, Section 8 makes it mandatory for the principal employer by way of statutory duty to ensure that the contractor discharges all his liabilities towards EPF (Employees’ Provident Fund) of the contractual staff.
The principal employer has the authority to recover all EPF dues in respect of EPF members of the contractor from any amount payable to the contractor.
Moreover, Paragraph 30 of the said provision prescribes that the employer shall, in the first instance, pay the EPF dues in respect of all employees employed directly or through the contractor.
EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken according to claims made by the website. At present it maintains 24.77 crore accounts (Annual Report 2019-20) pertaining to its members.
