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PF & ESI on casual labor

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This query is : Resolved

CA Nitin K. Varshney (Querist)

10 May 2023 Pls suggest the legal views on the following case:
There are 2 types of workers in a factory, permanent & casual. Permanent workers are covered under PF & ESI. Casual workers are deployed when needed. Further these casual labors may not be same persons every time. Even number of these casual workers may vary as per the quantum of work. Now the question is whether PF/ESI will be deposited for these workers or not? What will be the provision, when some of the workers deployed on 1 day but they will never been deployed again?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 May 2023 Supreme Court has held that Section 2(22) of the ESI Act covers the “casual employees” employed for a few days on a work of perennial nature and wages as defined in section 2(22) and wage period as defined in section 2(23) does not exclude the wages payable to casual workers. They cannot be deprived of the beneficial provisions of the Act.

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