Understanding ID Act Coverage: Are Fixed Term and Contract Workers Eligible for Benefits?

Dear All,

Are Fixed Term Contract workers and contract labor both covered under the ID Act? Just wanted confirmation, please. Are all statutory benefits like PF, ESI, gratuity, bonus, etc., applicable to both of them as well?

Thanks in advance!

Fixed Term Appointments and the ID Act 1947

As regards Fixed Term appointments, they would come under the employer for the purpose of the ID Act 1947 as there is a direct Master-Servant relationship, and such appointees would be 'workmen' under the Act.

Contract Labor and Employer Liability

However, concerning contract labor, it is a finding of fact by the judicial authorities as to whether there exists a direct relationship between the contract labor and the establishment where the work takes place. Several factors need consideration, but it can be simplified as assessing how genuine the contract arrangement is. If it is indeed genuine, the contract labor will remain as the employees of the respective contractor without imposing any liability on the Principal Employer under the ID Act.