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In a housing society, where Security guards of more than 58 years are appointed as a new appointee, is it compulsory to deduct PF & esi contribution from them, as they are very poorly paid (approx Rs 8000/ pm) & it is difficult to claim PF from PF office after their sudden sacking?
From India, Kolkata

If they are in receipt of Pension from the EPF (not pension from other government or railway services) then they should be covered by EPF. Yes, the entire amount of employer's share shall be paid to EPF without bifurcating it as 8.33% to Pension Fund and the remaining to EPF.

In the case of ESI, there is no age limit and hence they should invariably be given ESI contribution.

My doubt is if they are paid only Rs 8000, how much is the statutory minimum wages for them in your state? And will you get people for this much of amount?

From India, Kannur

Just now I read in google that the Bombay High Court has ruled that Housing Society are not covered as industry and therefore, the provisions of various labor laws are not applicable for them.

What is happening in reality that the housing societies are engaging people - security, house keeping, gardening etc. through contractors. Those contractors organization are covered under PF and ESIC and also engaged people in industry. The contractors are also engaged one person in different locations - industry, establishment, housing etc. Moreover, 18% GST is also applicable.

One solution is based on Bombay High Court verdict the housing society may engage employees directly to avoid PF, ESIC & GST.

The minimum wages at WB, Municipal area (Zone-A) Un skilled category probably close to 9000/-. There is House rent allowance act which is 5% of Basic +DA applicable at WB. Therefore, the minimum wages should be 9000 + 450 = 9450/- for un skilled category at WB. To my opinion at least Un-skilled minimum wages should be paid to employees.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi

In my opinion, calling the so called associations of owners of apartments and individual houses situate in a housing complex as " Housing Society" is a misnomer. Maintenence and upkeep of incidental facilities like gardening, common area sweeping, pumping water, security etc., are individual responsibilities of the respective house owners practically carried out on a collective basis and the expenses in this regard are met out from the common charges collected from each unit in the complex. Only in this aspect of the matter, the hon'ble High Court would ruled so in the given case. Security from theft and trespass, ease of comfort and convenience or the enhancement of the ambience of the entire area can be the purpose of the engagement of labor on such activities.

However, the element of business comes into play when persons are hired through contractors for these works as the contractors perform this work in an integrated manner by exercising their own decisions in the matters of appointment, control, supervision and payment in respect of such persons engaged for the house owners association. In any contract work undertaken by a third party involving the engagement of his own workmen, application of labor laws is inevitable as the emphasis is more on the mode of execution of the work rather than its purpose and the ultimate beneficiary.

From India, Salem
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