Applicability of the Act

The Contract Labour (Regulation and Abolition) Act applies to the following entities:

• It applies to any establishment in which twenty or more workmen are employed on any day of the of the accounting year as contract labour.
• It applies to any contractor who employs or who employed twenty or more workers on any day of the accounting year.
• Also, it does not apply to the establishments if any work performed in the intermittent nature.
• It does not apply to the establishments if any work not performed for more than one-twenty days in a year.
• It does not apply to the establishments situated in the special economic zone(SEZ).
• It does not apply to the establishments if any work performed in the seasonal nature for more than sixty days in a year.

Here you can tell that client that you are not hiring more that 20 employees at any day of the year. 

Or other legal point you can raise is that you are establishment where the work is of intermittent nature so you don't need to register under this act. 

So you don't need to provide PF and ESI  to contract labour hired for a short duration.

No see since.the employees are.through vendor or for a specific job you are not required to take PF and ESI for them.

See you can simply tell client that they are not your employees.they are.employee of.your vendor and you are.not liable for them.

See.tell them the vendor is responsible they are.here.for.speicifc job and you keep changing them in different events so practically and legally not possible.

This is a totally unrealistic and unreasonable demand. How can paperwork be doen for labourers who are working only for a few  hours!! He must also be  employing such labourers. Ask him if he pays them like this.

Also the pf rules can be quoted to him. They do not say this.

Regards 

A person should work for a definite period in order to be eligible for such compensation.

No it will not be advisable to you to take pf and esi for such labours

No PF and ESI of such labours is not mandatory 

PF/ ESI is mandatory for employees and not for labour working on just your events. Ask your client to read the act or you may ask some advocate to provide you legal opinion and you may then share the same with your client 

Actually PF/ESI are social legislation ,PF applied where 20 or more persons employees in any of the preceding day and now ESI from the very day employee enters the premises of the factory so don't be confuse because going to deep nothing would be beneficial. For your purpose I would like to suggest that to avoid PF don't show the number of the employees on the payment sheet more then 20, keeping two payment sheet one for daily wagers according to different kind of work and another for monthly paid(Regular),for the ESI make your own scheme for the medical benefits on duty for the employees and ask your employees to sign and agree to the same as more beneficial rather to adopt any scheme of the govt.

ESI is mandatory if the employee is having salary of less than or equal to 21000 and the establishment has 10 or more workers.However, while counting workers only permanent employees count, not hourly/daily wage contract workers. 

Any organization employing a minimum of 20 workers is liable to give EPF/ESI benefits to the workers. Not possible. Show them law.

The laborers who are engaged for a some hours are not called as  employees, hence you dont show them as as even contract laborers, they may be shown as coolie laborers/employees.

It is regulated under the umbrella of Employees' Provident Fund Organisation (EPFO). PF registration is applicable for all establishment which employs 20 or more persons, subject to certain circumstances and exemptions even if they engage less than 20 employees.

There is a proposal to that any Firm which has a minimum of 10 employees has to be registered with the Employees’ Provident Fund and Miscellaneous Provisions Act.

The definition of an employee under section 2(f) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer and includes any person employed by or through a contractor or in connection with the work of the establishment.

While relying upon the definition of employee under section 2(f) of the Act read with para 30 of the Employees Provident Fund Scheme, the provident fund authorities always insist upon the principal employers to ensure that the contractors as engaged must pay the provident fund contributions and in case of non-payment, the principal employers are held liable.

1. As per the information mentioned in the present query, makes it clear that you have done quite good research on the issue and you are absolutely correct to some extent.
2. PF and ESI is applicable for those employees who are permanent of the firm as they have been hired for Contract of Service.
3. And others are coming as per the need as they have been worked on Contract for Service.
4. They can’t come under the same category as specified for permanent employees.