Are Employees in Charitable Institutions Entitled to Labor Law Benefits Like Minimum Wage and PF?

Dear All,

I need your expertise on the applicability of labor laws and the benefits for employees working in charitable institutions registered under the Societies Registration Act. These institutions focus on child welfare, women's rights, and educational development without engaging in any commercial activities. I am seeking clarification on the application of minimum wages, ESI, PF, gratuity, etc.

Thanks,
Jayarani J

Dear Jayarani,

It would have been better if you had provided the total number of employees in the entire establishment, along with a breakdown for each separate unit of activity and location. As it stands, if the total number of employees is 10 or more, the Payment of Gratuity Act, 1972 would be applicable.

Thank you for your reply, sir.

In our projects, we employ both salaried and casual labor. Altogether, there are 75 salaried employees and 35 casual laborers working on the sites and in the offices.

Additionally, are you indicating that there are 10 or more persons working in the organization as a whole, or specifically 10 or more in each project?

Dear Jayarani, the simultaneous application of several labor laws to any establishment possessing the characteristics of an industry is dependent on many factors, such as its nature of activities, the number of employees as a whole or unit-wise, the subject matter of the applicable law, and the locale of the establishment.

Examples of Applicable Laws

To provide examples, the Industrial Disputes Act, 1947 would apply in matters of industrial disputes. If your administrative or head office is located in an area covered by the Shops and Establishment Act, it would be considered an establishment under the Act regardless of the number of employees. If the total number of employees is 10 or more at any point, the Payment of Gratuity Act, 1972 would apply, and for 20 or more employees, the EPF Act, 1952 would be applicable to the establishment as a whole, including the employees of its other units.

Classification of Units

If any unit is involved in a manufacturing process, it would be classified as a factory under the Factories Act, 1948 based on the number of workmen and the usage of power. Units where employment is covered by the schedule of the Minimum Wages Act, 1948 would fall within the purview of that Act.

Composite Organizations

When a charitable organization engages in multifarious activities through its employees with their systematic cooperation in different units, it becomes a composite organization as a whole, while unit-wise, it differs based on activities. Therefore, no one can provide a comprehensive answer to your question. It would be best to approach the concerned authority under each relevant Act if you have any doubts.

Kind regards,
[Your Name]