UPSC Prelims 2021 Question:

With reference to casual workers employed in India

consider the following statements: 

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

Which of the above statements are correct?

Explanation:

• Organizations with 20 or more employees are required by law to register for the Employee Provident Fund (EPF) scheme, while those with fewer than 20 employees can register voluntarily. It is also mandatory for a salaried employee with a (basic + dearness allowance) less than Rs. 15,000 per month. However, it is not mandatory for employees drawing a salary higher than Rs 15,000. Thus, EPF coverage is not an entitlement for all casual workers but for those who fulfil the criteria given above. So, statement 1 is not correct.
  
  
• In 2020, the Supreme Court held that an employer cannot differentiate between contractual and permanent employees and ruled that casual workers are also entitled to social security benefits under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. According to the Minimum Wages Rules of 1950, employees in India are entitled to regular working hours and overtime compensation. So, statement 2 is correct.
  
  
• 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.  So, statement 3 is correct.
  
  

Therefore, option (2) is the correct answer.

Relevance: The Supreme Court ruled that casual workers are also entitled to social security benefits under the Employees’ Provident Funds and Miscellaneous Provisions Act.

Subject: Economics | Industry