Streamlining Inspection/ Reporting of Security, Manpower, Facility Management Establishments: EPFO Instructions

EPFO Instructions for Streamlining Inspection of Security/ Manpower/ Facility Management Establishments and Reporting of Actual Number of Employees

The EPFO vide Circular dt. 1 Aug. 2016 has issued instructions for streamlining Inspection of Security/ Manpower/ Facility Management Establishments and Reporting of Actual Number of Employees instead of Absolute Number of Employees, ascertaining whether details of contract awarded are uploaded by the principal employer in the EPF portal, as under:

EPFO Circular No. Compliance/C-III/011/3(18)2015/DL/DO-Ref/8654 dt. 1 Aug. 2016 

1. Large number of establishments engaged in providing security services, supply of manpower, facility management establishments and construction companies are covered under EPF & MP act 1952. Several complaints are received regarding under-reporting of employees/ contribution under the act in respect of such establishments. Often, the nature of such complaints is that these establishments have not enrolled all of the employees deployed with different principal employer/ clients.

2. In this regard, it is observed that while inspecting compliance of such establishments/ companies under EPF & MP Act, 1952 only absolute number of employees are reported by field officers and this may not give correct picture about number of employees engaged.

3. Hence, it has been decided that from now onwards

(a) it shall be mandatory on the part of Enforcement Officers, to report numbers of employees in respect of these security/ manpower/ facility management establishments with reference to each of principal employer/ clients being served by these establishments, and

(b) In case of any 7A proceeding, in respect of such establishments, it shall be mandatory on the part of officers working as Departmental Representatives to report numbers of employees in respect of these security/ manpower/ facility management establishments with reference to each of the principal employers/ clients being served by these establishments.

4. Further, while carrying out inspection of principal employers it must be ascertained whether the details of contract awarded have been uploaded by the principal employer in the EPF portal and the same should be reported in the inspection report.

The Inspection Proforma (Unexempted Establishments) has accordingly been modified with the inclusion of live items 2A & 7A in the proforma.

A copy of the modified Inspection Proforma is enclosed for ensuring that all future inspections are firstly, carried out keeping the instructions in the circular in view, and secondly duly reported in the revised proforma.

EPFO Circular dt. 1 Aug. 2016 on Inspection of Security/ Manpower/ Facility Management Establishments

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