Understanding Labor Laws for Educational Institutions: Can You Help with EPF, ESI, and More?

Hi,

Can anybody share information related to labor laws pertaining to educational institutions (teaching and non-teaching staff), such as EPF, ESI, and other acts?

Regards,
Sudhakar

Employees of educational institutions that are not state-owned or state-aided are covered by EPF and ESI, subject to the coverage rules prescribed therein. Subject to state amendments, teachers are not covered by the Payment of Bonus Act. Similarly, the Payment of Gratuity Act is also applicable to employees of educational institutions who are performing administrative functions. However, there is a move to amend the Payment of Gratuity Act to include teaching staff under the Act's coverage.

Educational institutions not covered by state service rules and registered under the State's Shops and Commercial Establishments Act will have to follow the service rules prescribed by the said Act. As such, other Acts such as the Payment of Wages Act, Minimum Wages Act, Maternity Benefits Act, and National and Festival Holidays Act (state Act) will also have a direct bearing on educational institutions.

Regards,
Madhu.T.K

Hi Vikrant,

You have to pay for the ESI contribution at 6.5% of the total employee and employer contribution towards labor charges paid. The payments made for labor and labor with materials, as per your accounts and vouchers, are covered. If only labor with the full amount and labor with material will be an approximate share based on the nature of work.

To avoid this contribution, you can engage only with contractors who are covered or exempted from ESI contributions, and you have to collect a copy of the relevant proofs to submit at the time of ESI inspection and audit.

You can also refer to the ESI website for further information.

Regards,
Muthukumar PS
[Phone Number Removed For Privacy Reasons]