Honable Punjab& Haryana High Court in the a recent matter in case of Pardeep Kumar Vs Presiding Officer and another held that employer-employee relationship in respect of principal employer, would not exist if the contractor, engaged in supply of manpower, is having a valid license under the Contract Labour (Regulation and Abolition) Act, 1970, records of payment of wages and attendance show payments made by the contractor, EPF employee code allotted to the workman is through the firm of Contractor.

Generally whenever there is a default by the contractors in timely depositing of PF dues the provident fund authorities hold the principle employer liable for the dues based on Para 30(3) of Employee Provident Fund scheme which provides that it shall be the responsibility of the principal employer to pay both the contributions payable by himself in respect of the employer directly employed by or through a contractor in respect of employees employed by or through a contractor.