With reference to casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The Government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
Correct Answer :
2 and 3 only
Solution :
The correct answer is 2 and 3 only.
Let us analyze each of the statements individually with reference to the labor laws and regulations governing casual workers in India:
Statement 1 is incorrect:
As per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, not all casual workers are automatically covered. Casual workers employed in covered establishments who draw a monthly wage below the statutory threshold (currently ₹15,000 per month) are eligible. Casual employees working in non-covered establishments or drawing wages above the statutory limit are not mandatorily entitled to EPF coverage. Furthermore, casual employees engaged for work not relevant to the business of the establishment may also be excluded. Therefore, saying "All casual workers" are entitled is legally inaccurate.
Statement 2 is correct:
Under the Minimum Wages Act, 1948, as well as the Factories Act, 1948 and provisions under the new Occupational Safety, Health and Working Conditions Code, all casual workers are entitled to fixed/regular working hours (typically 8 to 9 hours a day) and overtime wages if they are made to work beyond the standard working hours.
Statement 3 is correct:
Under Section 6 of the Payment of Wages Act, 1936 (amended via the Payment of Wages Amendment Act, 2017), the appropriate Government can, by notification in the Official Gazette, specify that the employer of any industrial or other establishment shall pay the wages to employees only through bank accounts (by crediting to the bank account) or by cheque. This measure was introduced to promote digital transparency and safeguard workers' rights.
Hence, statements 2 and 3 are correct, making 2 and 3 only the correct choice.
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