Q. 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?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Correct Answer: b) 2 and 3 only
Question from UPSC Prelims 2021 GS Paper
Explanation :
Employee Entitlements and Government Regulations
The discussion around the entitlements of casual workers and the regulatory powers of the government brings up several important points. Firstly, the statement regarding the Employees Provident Fund (EPF) coverage is not universally applicable to all casual workers. The EPF scheme, as per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, is designed for establishments with a significant workforce, and casual workers in smaller setups may not be covered automatically.
Working Hours and Overtime for Casual Workers
In terms of working hours and overtime, casual workers are generally protected under labor laws such as the Factories Act, 1948, and various Shops and Commercial Establishments Acts. These regulations ensure that casual workers receive fair treatment regarding their working hours and are compensated for overtime. Shop and Establishment Act India (indiafilings.com)
Wage Payments Through Bank Accounts
Regarding wage payment methods, the government indeed holds the authority to mandate that wages be paid through bank accounts. This move is aimed at enhancing transparency and safeguarding workers against potential financial malpractices. The Payment of Wages Act, 1936, supports this initiative by allowing amendments for wage payment via cheque or bank transfer as specified by the government for different industries. Tax Laws & Rules > Acts > Payment of Wages Act, 1936 (incometaxindia.gov.in)
