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PF Liability

03 January 2008

What is the liability for PF if labourers are engaged on contractual and/or casual basis? Are there any other labour law requirements?

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8 Replies

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 04 January 2008

The term casual labour means the temporary labour employed to execute jobs of temporary nature or permanent nature jobs where the requisition is purely temporary. The difference between contract and casual worker is that the contract worker is working under a contract where in case of casual worker there is no contract and works on the basis of no work no pay. In terms of law, there is no distinction and a casual employee becomes eligible if he/she fulfills the creteria, hence the employee is eligible for ESI, PF, Bonus, Minimum Wages, Annual Leave with Wages, Leave encashment etc. The only limit is that the eligiblity to claim permanent employment under the ID Act, must be looked into. One more precaution we have to take is that if a casual labour completes 240 days of continuous work (here days worked, weekly offs, holidays and paid leaves are counted for the purpose of arriving at the figure of 240 days), then casual labour has to be regularized. Thanks & Regards Amit Daga

Anil Kumar Agarwala (CA) (67 Points)
Replied 04 January 2008

Thanks Amit

(Guest)

hi, thanks

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 18 January 2008

Its ok aniljee..by the way can i know abt u

Irshad (Article) (1426 Points)
Replied 23 January 2008

Thanks Amit,I really found it helpful...

Jatin Bhardwaj (CA Job) (31 Points)
Replied 31 January 2008

Amit what criteria do a casual laborer need to fulfill to become eligible for ESI, PF, Bonus, Minimum Wages, Annual Leave with Wages, Leave encashment etc.apart from that 240 days condition. plz. enlighten me.

(Guest)

SIR, I HAVE A DOUBT. A SMALL CONCERN HAVE 15 EMPLOYEES. ANY ESI, PF LIABILITY IN THIS CONCERN?. AND ALSO CONFIRM WHAT IS MINIUM EMPLOYEES WORK IN A CONCERN TO INVOLVE PF AND ESI