Dear Friends, Please clarify weather the Piece rated workers are attracted Provident Fund & ESI ? Since there work is on piece rate. Regards, PBS KUMAR
From India, Kakinada
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Kumar, If the workmen engaged by you are 20 & above, PF will apply irrespective of regular workmen or piecerate workmen. I am not aware of ESI part. Pon
From India, Lucknow
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From India, Lucknow
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PF & ESI both will be applicable if there is a employer-employee relation. Calculation will be on the actual amount paid monthly. regards, Kamal
From India, Pune
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From India, Pune
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ESI and Piece-Rate Work
In the case of ESI, it is important to consider where the work is carried out on a piece-rate basis. Whether it is on the employer's premises or at the workmen's place, such as BIDI workers, makes a difference. Some workers work on a piece-rate basis in the employer's factory or works, and in such cases, ESI is applicable to those workers. However, some workmen take materials to their place of residence to complete the work, and in this situation, ESI is not applicable to those workmen.
EPF Applicability
EPF is applicable in both the scenarios explained above.
From India, Pune
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In the case of ESI, it is important to consider where the work is carried out on a piece-rate basis. Whether it is on the employer's premises or at the workmen's place, such as BIDI workers, makes a difference. Some workers work on a piece-rate basis in the employer's factory or works, and in such cases, ESI is applicable to those workers. However, some workmen take materials to their place of residence to complete the work, and in this situation, ESI is not applicable to those workmen.
EPF Applicability
EPF is applicable in both the scenarios explained above.
From India, Pune
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If there is a employer-employee relationship, PF and ESI is applicable, it does not matter where the work is being carried out. regards, Kamal
From India, Pune
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From India, Pune
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Very interesting question posed by Kumar ji. Nowadays, to avoid liability under the PF and ESI Acts, employers draft agreements that may be job-oriented or piece-rated. In such cases, if the matter goes to the judiciary, they try to unveil any potential deception. Should they discover that the agreements are mere camouflage or a sham, they rule the case against the employer.
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From India, Vadodara
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Regards
From India, Vadodara
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Dear Kuljit ji, thank you for your comment. Some more clarification, please, from experts in this field. It's a vital question and a day-to-day problem faced by HR professionals. Employers always insist that my work should not be obstructed by these issues. If the statutory authority asks the question again, the employer blames our HR person. So, I request all of you, what are the solutions?
Regards,
PBS KUMAR
From India, Kakinada
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Regards,
PBS KUMAR
From India, Kakinada
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ESI - Construction site workers.pdf