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?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Answer 1

Correct Answer - Option 4 : 1, 2 and 3

The correct answer is 1, 2 and 3.

• The provisions of the Provident Fund Act, 1952, covers all types of employees, who are drawing salary/wages at the time of joining up to Rs. 15,000/- per month.
• Also, the employees drawing salary/wages more than Rs. 15,000/- per month can also come under the purview of the EPF Act at the discretion of the management and by submitting a joint undertaking to the Provident Fund Commissioner.
• The Act does not make any distinction between temporary and permanent workers or daily rated and piece rated employees.
• Further, in case the casual workers are employed in or in connection with the work of the establishment, the said casual workers are also covered under the Employee Provident Fund Act from the date of their joining the establishment. Hence statement 1 is correct.
• According to the Minimum Wages (Central) Rules, 1950, when a worker works in employment for more than nine hours on any day or for more than forty-eight hours in any week, he shall in respect of overtime work, be entitled to wages -
  • In the case of employment in agriculture, at one and a half times the ordinary rate of wages.
  • In the case of any other scheduled employment, at double the ordinary rate of wages. Hence statement 2 is correct.
• The Central government has notified the amendment under section 6 of The Payment of Wages Act, 2017, with the provision that "the appropriate Government may, by notification in the Official Gazette, specify the industrial or another establishment, the employer of which shall pay to every person employed in such industrial or another establishment, the wages only by cheque or by crediting the wages in his bank account". Hence statement 3 is correct.