Q. With reference to the casual workers employed in India, consider the following statements:

1. All casual workers are entitled to employees Provident Fund Coverage
2. All casual workers are entitled to regular working hours and overtime payment
3. The government can by notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

  • 1 and 2 only
  • 2 and 3 only
  • 1 and 3 only
  • 1, 2 and 3

Answer: d) 1, 2 and 3

Notes:
  • An employer cannot differentiate between contractual and permanent employees; the Supreme Court has ruled that casual workers are also entitled to social security benefits under the Employees’ Provident Funds and Miscellaneous Provisions Act.
    • “As per Section 2(f) of the EPF Act, the definition of an employee is an inclusive definition, and is widely worded to include any person engaged either directly or indirectly in connection with the work of an establishment, and is paid wages,” a bench of SC said.
  • Employees in India are entitled for regular working hours and overtime payment according to Minimum Wages Rules, Casual workers have all those rights that are enjoyed by regular workers since the definition of employee includes casual labor as per Supreme Court guidelines.
  • The Payment of Wages (Amendment) Act 2017 provides that the government may specify that the employer of any industrial or other establishment shall pay wages to every employee only by cheque or by crediting the wages in his bank account“.
Employees’ Provident Fund Organisation (EPFO)
  • Employees’ Provident Fund Organisation (EPFO) was established by an act of Parliament of India, to provide social security to workers working in India.
  • It is a statutory body that came into force by Employee Provident Fund and Miscellaneous Provision Act, 1952.
  • EPFO comes under the control of the Ministry of Labour and Employment, Government of India.
  • EPFO is the largest social security organization in the world in terms of the number of covered beneficiaries and the largest in terms of the volume of financial transactions undertaken.
    • On 1st October 2014, Prime Minister launched Universal Account Number for Employees covered by EPFO to enable PF number portability.
  • There are 3 major schemes of EPFO:
    1. EPFO Scheme 1952
      • Salient features of EPFO schemes
        • Accumulation plus interest upon retirement and death
        • Partial withdrawals allowed for education, marriage, illness and house construction
        • Housing scheme for EPFO members to achieve the Prime Minister’s vision of Housing for all by 2022.
    2. Pension Scheme 1995 (EPS)
      • Salient features of the Pension Scheme
        • The monthly benefit for superannuation/benefit, disability, survivor, widow(er) and children
        • Minimum pension of disablement
        • Past service benefit to participants of the erstwhile Family Pension Scheme, 1971.
    3. Insurance Scheme 1976 (EDLI)
      • Salient features of the scheme
        • The benefit provided in case of the death of an employee who was a member of the scheme at the time of death.
        • Benefit amount 20 times the wages, maximum benefit of 6 Lakh.