Understanding PF Contributions: How Are Casual, Temporary, and Part-Time Workers Affected?

What is the status for PF contribution for the following:

1. Casual Labour
2. Temporary Labour
3. Apprentice
4. Trainee
5. Part-time Labour

And also, all of the above through a subcontractor not covered under the EPF Act.

Dear Abby,

Except trainees and apprentices, all others must be covered under PF. This is irrespective of their status and the organization of their engagement.

Regards,
SC

Dear SC,

Are you very sure regarding this? Who is going to allot a PF number and maintain accounts for the casual labor or others: the subcontractor or the principal?

Aby

Dear Abby,

It is up to the management to decide: Some companies carry out the compliance by allowing the contractor to use its own code, while some companies do not enlist any contractor or subcontractor who does not have a PF code.

Regards,
SC

Mr. Swastik,

I need your valuable advice on the following:

We have 200-250 workers from one of our contractors who have separate PF codes. The problem we face is when the contractor gives us a photocopy of the receipted challan, which is combined, and the number of subscribers is usually 900-1000. Though we ask for Form 3A & Form 6A at the end of the year, is there any procedure to check on a monthly basis?

Hi Swastik,

I have a doubt about this. I think even the trainees' and apprentices' salaries also come under this as per the Apprenticeship Act. It is not applicable if you have more than 100 employees, but for smaller companies, it is applicable.

Regards,
Archna

Dear Archna,

A trainee is not considered an employee unless stated otherwise. Regarding apprentices, the PF Act provides specific guidelines as shown below:

"employee" means any person who is employed for wages in any kind of work, manual or otherwise, within or in connection with the operations of an establishment and receives wages directly or indirectly from the employer. This definition also includes:
(i) individuals employed by or through a contractor within or in connection with the establishment's operations;
(ii) individuals engaged as apprentices, excluding those engaged under the Apprentices Act 1961 or under the establishment's standing orders.

Regards,
SC

I also doubt temporary and temporary casual labor. Any firm answers. What about employees under probation?

Dear All,

Shiva asked:
Sorry for the delay. Well, I always ask for a Self Declaration under the Contractor's Letterhead signed by their Authorized Signatory, giving the following details:
1) Gross Wage
2) Total PF Wage Liability
3) Date of Deposit
4) Individual Employee Name with PF No. and Contribution
5) Total Employer's Contribution
6) Total PF Contribution for the month.

Aby said:
Aby, what is the difference between temporary casual and casual worker? I have already said that PF needs to be deducted for all employees irrespective of the status of the employee if the establishment is covered under PF.

Regards,
SC

This is impossible.

We have, on average, at least 15 casual workers who change on a monthly basis. Sometimes, the changes are more frequent and involve more workers.

This seems entirely unachievable.

ANY SUGGESTIONS!

Dear Aby,

If you are discussing casual workers, they are covered under PF, at least in West Bengal. Even if a person works for one day, we have to deposit PF. Possible or impossible is a separate issue, but it is the statutory position.

Now, how do we bend the rules? What we do is not give them the status of a workman by providing an official job contract. Unofficially, however, they have workman status.

For example, a carpenter is engaged for furniture repair. We instruct him on what and how to do the work, but during payment time, we ask the person to submit a bill (which is designed and printed on the computer by us), and payment is made through petty cash. Therefore, officially he has a Vendor Status, but unofficially he is a worker.

Regards,
SC

Employees' State Insurance Act

The Employees' State Insurance Act is a social welfare legislation enacted to provide social protection to employees in cases of sickness, maternity, injury, etc. The Act aims to ensure that employees receive necessary benefits during times of need. It is essential for employers to comply with the provisions of this Act to safeguard the well-being of their workforce. Understanding and adhering to the regulations outlined in the Employees' State Insurance Act is crucial for both employers and employees to maintain a healthy and secure work environment.