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Do Service Providers Come Under Factories Act And Go For PF?

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  • Do Service Providers Come Under Factories Act And Go For PF?

    Do the service providers like repairers in the field of automation/industrial electronics come under factories act. should one such firm get the registration for PF and ESI if its a proprietorship firm working since last 2.5 yrs and having 8-10 employees. In case such firm manages AMC annual maintenance contract of some PSU They demand PF/ESI registration NO.s . what should be done in such case ?

  • #2
    Dear Kate,
    As for as the basic data included in your query the Factory Act, PF & ESI Act, prime facia, are not applicable to this service provider. But they are actually providing services to such PSU who are covered under aforesaid acts. that is why PSU is asking for Its PF & ESI Registration. Since Services under AMC are not covered under E.P.F. and ES.I. therefore the said PSU, in my view should not have any problem as far as the compliance are concerned under E.S.I. & E.P.F. Act. The service provider must be having a CONTRACT FOR SERVICE with the PSU's (NOT CONTRACT OF SERVICE) both terms have meaningful difference as per the Apex Court pronouncements on the same subject. (Check it in your agreement with PSU) The Factories Act can not be applicable on 8 employees.

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