EPFO Updates: The Employees Provident Fund Organisation protects the interests of contractual employees or staff as well as regular employees.
On its website, the retirement fund body stated that it is 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 names by using the establishment search option available on the EPFO official website.
If the principal employer guarantees that all contract employees activate their Universal Account Number, it will help them keep a tab on whether the remittance is deposited or not. Just like direct employees, contractual employees can also avail UAN facilities online after registration and activation.
Clear provisions have been laid down to protect the interests of contractual employees and to ensure that the contractor pays his dues to the EPFO for the contract employees.
Under the EPF & PB Act, 1952, Section 8, it is mandatory for the principal employer to ensure that the contractor discharges all his liabilities towards the EPF 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.