Soical Compliance Auditing
Hrm, Admin, Ir
Advocate - Labour & Industrial Law
Sr. Personnel Officer
The Production record for Piece workers have to be maintained. The price of the article made by each piece worker has to be described and the wages register must show the number of pieces made by a particular employee in a month and the earnings has to calculated accordingly. the important issue comes here is the coverage of such piece rated employees under the ESI Act & EPF Act.
Under the EPF Act, if an employees earning in any given month falls below the exempted limit of Rs. 6500/- p.m. then he has to enrolled as a member of PF and please bear in mind that if his earning after he once become the member of PF increases above 6500/- p.m. , he will still remain to be PF member.
Under ESI Act, if an employees earning in any given month falls below the exempted limit of Rs. 10000/- p.m. then he has to insured as an employee under ESI Scheme. If his earning after he once become the an insured person increases above 10000/- p.m. , he would remain to be covered under ESI Scheme untill next contribution period. For e.g. a pice worker earned Rs. 9000/- in May 2009, then he has to covered under the ESI Act, but thereafter hsi earning increases and he always get Rs. 10001/- or more in all the months, in such a case there is no need to continue him as a ESI insured person and from Oct. 2009 you may not cover him under ESI.
24th June 2009 From India, Ludhiana
Thanks for your valuable advice.
I am working in garment manufacturing unit, in this unit lot of worker's turnover happened.
so pls clear my following douts
1) Now minimum wages in U.P for skilled categorie worker's is Rs. 4267/-per month. If any workers suppose X has worked in 15 days and during that period he has earned Rs.3000/-
should he covered in ESIC & PF Act?
2) what are records/register has to maintained for peice rate workers.
24th June 2009 From India, Delhi
To know the better about this ,we will explain it to you ,becuase this needs to be based on bonus system and it can't be explained thru mail,
,incase you need details about this,please visit at our website www.globaloverseas.in
25th June 2009 From India, Delhi
1)You have not understood my statement above,i clearly said that monthly average.
I think you have taken wrong meaning of my sentence that dont take few days means dont think about less wages earned,monthly avarage should be.
Yes we have attached petition of kerala HC and also we have a petition which was challanged in Supreme court .
If you need a copy of Supreme court decision ,i can forward it to you.
2) You have mentioned in point no.2 that multiply by 26,i have not mentioned this,please clarify why you have put illigal blame to me.
3)Please keep in mind that i am also LLM passed out and i have level above than you,i also a member of ESI committee.
We are not making history or some other notes and this is not a petition where i should elaborate with statutory law,i had attached one file with good example ,a phool person can understand easily.
The reason why cases pending in court becuase due to unwanted elaborate with illigal points.
Sometimes meaning confuse to some person.
25th June 2009 From India, Delhi
I think you are getting over excited and smart enough to edit your posts. Kind attention to your edited post: "Last edited by globaloverseas144; Yesterday at 03:31 PM.. Reason: calculation"
In your said post their was no calculations given by you !
For other readers on this Thread I must tell them that earlier Mr. Sajid has written something else on this thread, which promted me to give reply to it. Everyone could very well aprreaciate that I have not used any defamatory or offensive language, rather I started my sentence addressed to Mr.Sajjid with the words "Please don't take it otherwise".
It is not understood why Mr. Sajjid is getting too rash.
Secondly Mr. Sajjid in your last post you said that I am putting illegal blame on you. but my dear friend please read my post carefully. I have reproduced the extracts of the ESI Employer Guide mentioned at Page 31, which was also attached with the post.
Thirdly, Mr. Sajjid You said that you are LLM passed out and claims to have level above me, no Problem for me you may be at a very high level from where you seems yourself to be "GOD". Remain there in an isolated world of your own. if you cannot discuss a point in a good mood and behaviour I must say please donot reply. A Law Gradute or I must say a Masters of LAw must support its reply with some concrete evidence, else would make his own mockery in front of others.
Mr. Sajjid you are saying yourself to be an ESI committe memebr but I feel surprise that you are not aware of the ESI Employer Guide wherein they have given a method of calculation of notional wages for piece rated employees.
What I was pointing out the provisions and the law point, if you have the latest law of SC you may put it in the thread for the memebrs to read.
ALways be cheerful and do not attract unpleasant conversations.
26th June 2009 From India, Ludhiana
The monthly wage limit for coverage under the ESI Act would be such as prescribed by the Central Govt. in the ESI (Central) Rules 1950. The wage ceiling for coverage of employees (excluding remuneration for over-time work) is Rs. 10000/- (w.e.f 1st October, 2006). Earlier it was Rs. 7,500/-per month w.e.f. 1.4.2004 (Rule 50 of ESI (Central) Rules 1950).
An employee who is coverable at the beginning of a contribution period shall continue to remain covered till the end of that contribution period notwithstanding the fact that his wages may exceed the prescribed wage ceiling at any time after the commencement of that contribution period.
Wage ceiling for purpose of coverage is revised from time to time by the Central Govt. on the specific recommendation of the Corporation.
26th June 2009 From India, Surat
25th July 2009 From India, Calcutta
I m working in manufacturing unit in which most of work is on piece rate ,here in himachal mini wage is 6750 rs per month , so while checking contactor compliances they submit pf on rate 6000 , is it non compliance kindly confirm or tell ultimately liability of submission of pf and esic if contractor is not submitted .
11th May 2019 From India, Delhi