SHILLONG, Aug 8: A conglomerate of contractors and suppliers under the umbrella of All Meghalaya Contractors & Suppliers Association has asked the Labour department to look into the requirement of EPFO registration for petty contractors or one-man firm that engage limited number of unskilled labourers as and when the work demands.
In a letter to the Minister in charge of Labour, Sanbor Shullai, the association has maintained that select government departments including the PWD and Sericulture & Weaving have been insisting on applying for EPFO for registering and renewal of contractors, even as they claimed that such a procedure is not required with other departments.
The association explained: “…work contract relating to construction of roads, buildings, etc., that are executed by petty local contractors are within the purview of the unorganised sector. The nature of work is temporary and erratic, and the labourers are engaged only when there are works. Thus, the relationship between the employer (contractor) and the employees (labourers) are temporary. Petty local contractors cannot be categorised at par with big construction firms or companies that have regular employees like managers, engineers, accountants, clerical staffs, etc. in the payroll”.
They also stated that their establishment falls under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, claiming that social security benefits have been provided under the Act. “Then perhaps EPFO registration is not required,” they asserted.
