With reference to casual workers employed in India, consider the following statements:
- All casual workers are entitled for Employees Provident Fund coverage.
- All casual workers are entitled for regular working hours and overtime payment.
- 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?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Explanation
Statement 1 is incorrect
- Although the Supreme Court has clarified that casual workers are entitled to social security benefits under the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF Act), this entitlement is not automatic for all casual workers. The eligibility for EPF coverage depends on specific employment conditions, such as the nature of their employment and the establishment’s size. Thus, not all casual workers are universally entitled to EPF coverage; this benefit is subject to specific conditions and not uniformly applicable to every casual worker.
Statement 2 is correct
- According to the Minimum Wage Rules, 1950, all employees in India, including casual workers, are entitled to regular working hours and overtime pay. The Supreme Court guidelines have clarified that casual workers fall within the definition of an employee.
Statement 3 is correct
- The Payment of Wages Act, 1936, underwent a modification through the Payment of Wages (Amendment) Act, 2017, with effect from 28.12.2016. This amendment empowers employers to disburse wages to their employees through (a) cash, (b) cheque, or (c) crediting the amount to their bank accounts.
- Additionally, the amendment grants the competent Government the authority to designate specific industries or establishments, through an official notification in the Gazette, where wages must be paid exclusively through cheques or by crediting them to the employees’ bank accounts.
