Navigating Aanganwadi Project: Are We Facing Compliance and Wage Risks?

Dear Team, We are a corporation in Jharkhand, and the Social Welfare Department of the Jharkhand Government has asked us to run the Aanganwadi project on our campus under their supervision. The manpower required to run the project has been jointly hired by a government representative and one of our executives. There is a fixed pay structure for the employees, ranging from the Principal to the peon, which we are supposed to pay initially and then get reimbursed by the government.

Concerns Regarding Aanganwadi Project

1. Will the engagement of Aanganwadi employees lead to contract labor compliance issues, including claims for permanency, considering that the supervision and payment, based on attendance and leave sanction, are managed by us?

2. If not, whose employees are they, as neither party has issued an appointment letter to them?

3. Are we required to adhere to EPF and ESI compliance for these employees?

4. Some categories of workers are being paid less than the minimum wage as per the pay structure of the Social Welfare Department. Is my organization at risk?

Thank you.

In the absence of an MOU, based on your query, the point-wise reply to your concerns is as follows:

1. You will be governed by the Contract Labour (R&A) Act, and the manpower recruited/engaged will be your employees not only for the purpose of payment of wages and leaves but for all labor laws.

2. As stated above, these employees will be yours, and the principal employer will be the State Government.

3. Yes, compliance with EPF and ESIC is to be done subject to the fulfillment of required numbers and implemented areas for ESIC.

4. Please refer to the State Notification of minimum wages, and in my view, there is no relaxation for you. You can be prosecuted for violation of the Minimum Wages Act. Even the State Government, being the principal employer, can also be a party.

Regards, P. K. Sharma