Is it possible to pay the company's driver full compensation in hand without bringing him on payroll?

Is it possible to pay the company's driver full compensation in hand without bringing him on payroll?

Though it is possible as long as either the poor employee does not complain or the labor enforcement officer fails to notice it, certainly it is an unfair labor practice for the employee loses his identity with the organization and social security benefits like EPF, gratuity etc.

Actually, it's the employee who wanted salary in cash instead of depositing into bank account with all the benefits like you mentioned but you are right it's a wrong practice and we should not encourage this.

Dear Sandipg1977,
You can not say that the employee agreed for less salary and therefore you gave him less salary.
You can not say that the employee agreed for no deduction of PF, ESI etc from his salary and therefore you are not deducting PF, ESI etc from his salary.
You can not say that the employee agreed for the salary not in currency and therefore you gave him in some other form (barter system). And so on..
This is all called as contracting out in law.
Contracting out means no one is allowed to either relinquished or reduced his legal right / entitlement. Any one relinquishing or reducing his legal right / entitlement for whatever reason, it would be null and void.

Dear all,
If the driver is paid above 15,000 per month, do the deductions like PF, gratuity and bonus still apply?

Dear HBJ,
Whether you employ Driver or you employ helper or you employ any person in any category, even you employ any person for one day also, you have to cover him under the PF and ESI if the said enactments are applicable to your company / establishment and the person employed is eligible for enrolment under the said enactments.
When you employ some one, you are liable to obtain PF Form 11 from him. In this Form 11, the employee declares that he was a member of EPF / EPS before joining you or not and gives his UAN / PF number there.
If he declares in this Form 11 that he is a member of EPF / EPS, you have no option but to enrol him under EPF / EPS. If he is not a member of EPF / EPS and his salary (PF Salary) at joining you exceeds Rs. 15000/- you have an option to enroll him under EPF / EPS provided he agrees to. It is not mandatory to enrol him under EPF / EPS in this case.
ESIS is applicable if Salary is less than Rs. 21000/-.
Gratuity is applicable as on date, if he (whether he is Driver or otherwise) completes 5 years of service, provided POG Act is applicable to your establishment.
Bonus is applicable if he (whether he is Driver or otherwise) works for 30 days and more in financial year and his basic plus DA less than Rs. 21000/- p.m., provided POB Act is applicable to your establishment.

Akhil Bhartiya, Thanks for the clarification and additional information, very helpful.