Understanding PF, Bonus, and ESIC Eligibility for Casual vs. Contractual Employees in India

Eligibility for PF, Bonus, and ESIC for Contractual and Casual Employees

I have been working in a private company in Guwahati, Assam, as a personnel officer for the last two years. Recently, our company started a project for which we recruited some candidates on a contractual basis and a few on a casual basis. Now, my question is whether they will be eligible for PF, bonus, and ESIC, and what the laws actually say. Moreover, what is the difference between them because both are treated here more or less the same.

Regards,
Niharika Baishya

Difference Between Casual and Contractual Employment

The main difference between both types of employment is the number of hours worked by the employee. If the employee works on an hourly basis, it is termed as casual employment. If the employee works for not less than 38 hours a week, it is known as contractual employment.

Employees on a casual employment basis cannot avail of paid sick leave, public holidays, and may not be informed of roster changes in the firm. In contrast, employees on a contractual basis are employed for a longer duration. Employees on casual employment are employed for shorter durations, such as five or ten days.