Outsourcing manpower is meant to reduce risk, not add it. But when a vendor cuts corners on statutory compliance, the liability can still land on the principal employer. Before you sign, it pays to understand exactly what a compliant arrangement looks like.
The three obligations that matter most
- EPF (Employees' Provident Fund): applicable to establishments with 20+ employees. Both employer and employee contribute 12% of wages, remitted monthly with an ECR (Electronic Challan-cum-Return).
- ESI (Employees' State Insurance): applicable where wages are up to the notified threshold. The employer contributes a defined percentage of wages and the employee a smaller share, giving workers medical and cash benefits.
- GST: staffing and facility services attract GST, which should appear as a clear line item on every invoice, supported by a valid GSTIN.
What to ask your vendor for
Compliance is only real if it's documented. A dependable partner should be able to produce, every month, without being chased:
- EPF and ESI challans (proof of remittance, not just registration),
- A monthly wage register showing minimum-wage adherence for the applicable skill category,
- GST-compliant invoices with the GSTIN clearly stated,
- Police and ID verification records for each deployed worker.
Why it protects you
As the principal employer, you can be held responsible for a contractor's statutory lapses. Audit-ready documentation isn't paperwork for its own sake — it's the evidence that shields your organisation in an inspection or dispute. Insist on it monthly, not annually.
At SecureLife Group, EPF, ESI, GST and minimum-wage compliance are handled end-to-end, with clean documentation delivered every month. If you'd like a compliance walkthrough for your current arrangement, our team is happy to help.