Dear Members
We are a public limited company having its headquarters at Hyderabad, Andhra Pradesh and is India's largest private sector provider of seismic survey services to the rapidly growing oil exploration and production sector.

Our operations are majorly done in north east states of India, during which we engage few casual workers (Semi & Unskilled) ranging from 50-150 members. We are currently paying the a consolidated amount as wages which is in line with the minimum wages of that state.

My question is whether these workers will fall under the purview of various acts like PF, ESI & Bonus ? Request your advise.

Regards
Rajeev

From India, Hyderabad
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Hi Rajeev,

The PF & ESI Act clearly states that you have to cover a person even if they worked for a single day in the establishment where the total number of employees is 20 without the aid of power and 10 with the aid of power. However, in the case of construction workers, there are some amendments in the ESI Act. Please check.

Regards,
Srikanth

From India, Madras
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Dear Rajeev,

For your information:
1) ESI and PF are applicable to casual employees as well.
2) As per the Factory Act (casual workers are classified as workmen/employees), if you engage more than 20 employees without the aid of power and 10 employees with the aid of power.
3) If an employee works even a single day, he/she comes under ESI and PF.
4) As per Mr. Rajeev, ESI will not be applicable to any construction buildings/factories.
5) If your establishment is registered under the Factory Act, then you have to pay bonuses as per the bonus rules. If an employee works for 30 days, he/she is eligible for a bonus.

Regards,
Santhosh

From India
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