Employer Skipping PF and ESI for Daily Wage Workers: Is This Against Indian Labor Law? How Should I Handle It?

Hi Professionals,

I work as an HR Officer in a production company, and my employer refuses to pay PF and ESI for daily wage labor. Can you please advise if this violates Labor Law? If so, how should I address it? If not, how should I maintain the wages register?

Your suggestions are urgently needed.

Thanks and regards,
Pawan Panchal

In India, it is mandatory for employers to contribute to the Provident Fund (PF) and Employee State Insurance (ESI) for all eligible employees, including daily wage laborers. Failure to comply with these regulations constitutes a violation of labor laws. Here's how you can handle this situation:

1. Educate the Employer: Explain the legal requirements regarding PF and ESI contributions for daily wage laborers. Provide clear information on the consequences of non-compliance.

2. Document Everything: Keep detailed records of communication with the employer regarding this issue. Document any refusals or non-compliance instances.

3. Seek Legal Advice: If the employer persists in not paying PF and ESI, consider seeking legal counsel to understand your rights and the legal options available to address the violation.

4. Inform the Authorities: If necessary, report the non-compliance to the appropriate labor authorities. They can investigate the issue and take necessary actions to ensure compliance.

5. Protect Employee Rights: Advocate for the rights of the daily wage laborers by ensuring they receive the benefits they are entitled to under the law.

By taking these steps, you can address the violation of labor laws effectively and protect the interests of both the employees and the company.