Ease of doing business: Delhi Contract Labour

anujThe Contract Labour (Regulation and Abolition) Act, 1970 is a Central Act. However mostly all States are having their own rules. Likewise Delhi is also having its own rules namely Delhi Contract Labour (Regulation and Abolition) Rules, 1970. In the said act there are two types of approvals, one is on the part of contractor, which is called license (section 12) and second is on the part of employer, which is called registration certificate (section 7).

As Govt. of every State has been focusing on “Ease of Doing Business” and to take it forward the Labour Department Govt. of NCT of Delhi, has decided to easy the procedure for granting of registration & license in the following manner:

  1. Facility of filing of application form for license(Form IV)/registration(Form I) through online is avail.
  2. Application for license shall be supported by certificate issued by Principal Employer in form V.
  3. Application form whether for license or for registration, shall be supported by MOA & AOA or partnership deed or Proprietor’s ID proof as the case may be.
  4. Details of fee to be paid should be given in application form.
  5. Wages shall be paid to the contract workers only through A/C payee Cheque/ECS transfer.
  6. Contractor to comply all the conditions of license as provided in rule 25.
  7. License/registration certificate shall be granted by concerned officer within 7 days from the date of receiving of application.

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Employees’ Enrolment Campaign, 2017 (Amnesty Scheme for Provident Fund)

About EPF:

Companies in which twenty or more persons are employed are liable to register for allotment of the PF Code number with Regional Provident Fund Commissioner. The employees whose salary is less than Rs. 15000 are to be mandatorily enrolled under EPF. The employer shall deduct the employee’s contribution from his wages and within fifteen days of the close of every month pay to the fund by separate bank drafts or cheques on account of contributions and administrative charge.

Employees’ Enrolment Campaign, 2017:

  • Companies who has not enrolled employees and deposited PF for period beginning from 01.04.2009 to 31.12.2016 can avail the scheme;
  • This scheme is effective from 01.01.2017 till 31.03.2017;
  • Company shall furnish Declaration Form for Employees’ Enrolment Campaign, 2017 to the Regional Provident Fund Commissioner (Online facility also available);
  • Company shall, within fifteen days of furnishing the declaration, remit the employer’s contribution payable in accordance with the provisions of the Scheme and the employee’s contribution deducted from the employee’s wages along with interest payable (@12% p.a) in accordance with section 7Q of the Act;
  • The following incentives are available to the employer:
    1. The employee’s share of contribution, if declared by the employer as not deducted, shall stand waived.
    2. The damages to be paid by the employer in respect of the employees for whom declaration has been made under this campaign shall be at the rate of Rupee 1(one) per annum.
    3. No administrative charges shall be collected from the employer in respect of the contribution made under the declaration.
  • After furnishing declaration and depositing the contribution, a return will have to be filed with the Regional Provident Fund Commissioner in such form as may be specified by the Central Provident Fund Commissioner.
  • This scheme is not available for companies against whom inquiries have been initiated by PF authorities under section 7A of the Employees Provident Fund & Miscellaneous Provisions Act, 1952. (http://www.epfindia.com/site_en/circulars.php?id=sm7_officeUse)

Know More :- Employees’ Enrolment Campaign, 2017