Why Are Gujarat's Fixed-Pay Contract Workers Missing Out on PF and ESI Benefits?

Gujarat government is engaging employees on fixed pay for 5 years on a contract basis, without providing any extra benefits such as PF, ESI, or any others. Can anybody help me understand why these people are not covered under PF, ESI, or any other labor laws? Is it possible for a corporate company to engage employees on fixed pay for a certain period without providing any other benefits?

Not working on any initiative but it's a question raised with concern, that since the government is engaging employees on fixed pay (without any benefits under PF, ESI, etc.) for a certain period, is it possible for companies/industries to recruit manpower like this!

You can file a complaint with the labor commissioner. Alternatively, since the government controls the labor commissioner, you have grounds to file a writ petition with the high court if you are affected in any way or as a public interest litigation.

Dear CWPL,

The particulars giving rise to your query are insufficient. The sovereign functions discharged by the Central and State Governments cannot be equated with the operations conducted by business entities, and the same applies to staffing for such sovereign functions. If such a practice is adopted by any Public Sector Undertaking, it would be a clear-cut violation of applicable Labour Laws. Therefore, it cannot serve as a cue for a business enterprise to follow suit.

Thank you.

Dear CPWL,

Your query is important, but the facts need to be analyzed. My understanding of your query is that the Fix Pay committed by the Guj. Govt. should include PF, ESI, etc. This fixed pay may be higher than the applicable Min. Wage, PF, ESI (all put together). Please verify the facts before taking any further steps.

Best Wishes