Merely by depositing statutory dues like ESI/PF of Contract Employee will not rise right for absorption with Principal Employer
Simply that a principal employer has deposited statutory dues viz. Provident Fund contribution on its own code number for the workers of contractor, it cannot entitle those contract labour for seeking their regularization. In one of the case of Hon’ble High Court of India, it has been clarified that the principal employer has discharged its obligation in paying the provident fund contributions of the workers of contractor; then in that scenario it cannot be a ground for regularization of workers of the contractor since the principal employer can recover the amount, as paid, from the contractor. Under section 2(f) of the Employee’s Provident Funds Act, 1952, which defined the expression ‘employee’ as, any employee is included by or through a contractor in connection with the work of the establishment. Therefore, the liability to pay the provident fund would arise even in respect of an employee under a contractor. Under section 3A, the amount of contribution paid or payable by the ...