Are Employers Skirting the Law by Paying Cash and Skipping ESI and PF? What Can Be Done?

Dear Seniors/Members,

There are certain business establishments that do not provide ESI and PF facilities to their staff, even though legally they are bound to do so. Additionally, they do not issue appointment letters to their employees and only pay salaries in cash.

What can be done in these cases? Please share your views regarding the same.

Thanks

Ensuring Compliance When Joining a New Establishment

When we join a new establishment, it is our responsibility to check the background of the establishment, determine which acts are applicable, and ask pertinent questions at the time of joining. It is essential to demand an Offer Letter and an Appointment Letter.

Importance of Written Communication

If we want to take any actions, all communication must be in writing. This includes details about CTC, leave benefits, facilities, medical facilities, probation period, office timing, and incentive policies.

Strategies for Verification

We can use strategies like not signing vouchers so they don't have any proof of payment, and demanding pay slips and wage register entries. Additionally, we can write a simple request letter to the labor department to verify establishment records and compliance.

Regards