Are Companies Responsible for PF and ESIC for Temporary Workers Paid via Vouchers?

Dear All,

I would like to know if the company is liable to enroll off-role temporary employees who are paid through vouchers for PF and ESIC.

1. Sir, temporary or casual employees are covered as "employees" within the meaning of ESI & EPF Acts, and compliance is required to be made.

2. The mode of payment of wages is irrelevant. As and when inspection of records is conducted by the investigating officers of the above departments, the non-payment of contribution in respect of wages paid by vouchers will be treated as defaults, and contribution will be demanded by the said departments along with interest and damages, if any.

Yes, you are liable for ESI/EPF of temporary employees as well. These laws do not make any distinction between temporary or permanent employees.

Employees who enter the factory or establishment, other than visitors, are to be covered from the very first day.

As per the P.F. Law, if anybody works for a single day, they are liable to get P.F. This requirement was imposed by the Government of India after rules were set by the Hon'ble Supreme Court.

PF & ESI are compulsory for permanent and contractual (CL) employees. There are no exemptions in this regard. When an employee joins a factory for the first time, they must have ESI or insurance coverage.

Apart from law and enforcement, look at it as a human. In case of illness and in certain unexpected circumstances, the coverage saves the employer and also brings confidence to him (by the casual employee/his dependents, etc.).