Under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act), the membership of an eligible employee is compulsorily from the first day of his appointment. There is no distinction whether an employee is regular, temporary, casual, getting wages directly or indirectly from the employer for the purpose of making EPF Act applicable. This includes a case where an employer any person who is employed for wages by or through a contractor, in or in connection with the work of the establishment. Hence, in such a situation, the principal employer is not absolved of its liability under the EPF Act.
In a case where the concerned contractor has its own code under the EPF Act, remittance of PF contribution should be made by the contractor. In such a scenario, the principal employer should ensure that the contractor complies with the provisions of the Act. In a case where the contractor does not have its own code, remittance of PF contribution may be under the code of the principal employer, with a separate statement of the employees covered under the EPF Scheme. In the event the contractor defaults in remitting the PF contribution, contribution liability devolves upon the principal employer.