With reference to the 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?

Question

GSMediumPrelims 2021Social Issues & Schemes

With reference to the casual workers employed in India, consider the following statements:

All casual workers are entitled for Employees Provident Fund coverage.
All casual workers are entitled for regular working hours and overtime payment.
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?

Explanation

Statement 1 is Incorrect: The Government had launched a scheme viz Casual Labourers (Grant of Temporary Status and Regularization) Scheme of Government of India, 1993. As per the scheme, Temporary status would be conferred on all casual labourers who were in employment and who have rendered a continuous service of at least one year, which means that they must have been engaged for at least 240 days (206 days in case of offices observing 5 days week).

Statement 2 is Correct: The Supreme Court has decreed that casual workers are also entitled to social security benefits as stipulated in the Employees Provident Funds and Miscellaneous Provisions Act. The Court's ruling stemmed from its interpretation of Section 2(f) of the EPF Act, wherein the definition of an "employee" encompasses a broad scope, including any individual engaged directly or indirectly in connection with an establishment's work and receiving wages. A bench of the Supreme Court affirmed this viewpoint.

Statement 3 is Correct: The government has the authority to specify through a notification that an establishment or industry is obligated to disburse wages exclusively via its bank account.