Contractors who do not pay EPF-ESI will be excluded: TNEB

Tamil Nadu: The Tamil Nadu Electricity Board (TNEB) has issued a stern warning to contractors and service providers who fail to make timely Employee Provident Fund (EPF) and Employee State Insurance (ESI) contributions to workers’ accounts. The board has warned that such contractors will not be able to participate in any future contracts with the board.

A press release issued by the board stated that PF and ESI amounts are regularly provided by the board to contract workers employed at subsidiary companies such as the Tamil Nadu Electricity Distribution Corporation (TANGEDCO), Tamil Nadu Transmission Corporation, Tamil Nadu Power Generation Corporation, and Tamil Nadu Green Energy Corporation.

However, it has been observed that some contractors and service providers are not crediting workers’ accounts within the stipulated time, even after receiving the amounts from the board. The board termed this a serious violation of labor welfare laws and contract terms. The press release stated that such actions adversely impact workers’ social security rights and will not be tolerated under any circumstances.

According to the facts, the Board clarified that in the future, salaries for all contract workers should be paid entirely through bank transfers and digital means. This will not only increase transparency but also ensure the protection of workers’ rights.

TNEB also stated that contractors and service providers have been directed to regularly make EPF and ESI contributions on time. Any company that fails to do so will face disciplinary action and will not be allowed to participate in any new or renewed contracts with the Board in the future.

Board officials stated that the social security and rights of employees are of paramount importance. Therefore, the Board is taking strict action in this direction. They stated that new procedures are being adopted to ensure payments through digital tracking and bank transfers.

Experts say that this step is important in the interest of employees and will ensure strict compliance with labor laws. This will not only ensure timely disbursement of workers’ entitlements, but will also increase the contractor’s accountability towards the work.

In this way, the Tamil Nadu Electricity Board has sent a clear message that timely payment of workers’ EPF and ESI is mandatory, and contractors who ignore this will not be able to participate in any future projects or contracts.

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