The labor laws are not applicable in cooperative societies. therefore the security guards employed in Apartment /society directly by AOA then they are not eligible for PF ad ESI.MY question is, in case the security guards are places in the security of society through some agency/outsourced then what is the case, are the employees eligible for PF and ESI, and in case the answer is yes then from whom the agency will collect the contribution.
From India, New Delhi
Dear Shekhar,

Who told you that labor laws are not applicable to Co-operative Societies ? Societies registered under the Co-operative Societies Act are just exempted from certain provisions of some labor laws like Shops and Establishments Act only because of the inclusion of similar provisions in their registered bye laws.

Secondly, the AOAs you mentioned are not co-operative societies but associations of house owners only. If some of the apartments in the housing complex are let out for rent, the association loses its basic character of house owners association. Particularly, when the services of the security guards and/ or house keeping staff are hired through contract agencies by such an AOA, automatically, the provisions of the laws relating to minimum wages, EPF, ESI etc., are applicable subject to the presence of the parameters of coverage and applicability.

Moreover, the man power agencies which provide the people to serve in those housing complexes are industrial establishments. As such they would be covered automatically by the ESI Act and EPF Act provisions according to the total no of employees employed by them for deputing to their clients. Therefore, they are also obligated to pay at statutory minimum rates of wages for the security and other personnel supplied to their clients irrespective of the fact whether the clients are covered by any labor law or not. As such they cannot quote their charges without considering the statutory minimum wages factor and their primary obligations under the ESI and EPF Acts.

From India, Salem

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