With reference to 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?
Correct Answer: Option D
In Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana, the Supreme Court ruled that employers cannot differentiate between contractual and permanent employees, thus entitling casual workers to social security benefits under the Employees’ Provident Funds and Miscellaneous Provisions Act.
The Code on Social Security, 2020 replaces nine laws related to social security, including the Employees’ Provident Fund Act, 1952, the Maternity Benefit Act, 1961, and the Unorganised Workers’ Social Security Act, 2008. It applies to any establishment subject to size-threshold notified by the central government. The code also allows the central government to set up a social security fund for unorganized workers, gig workers, and platform workers, and mandates state governments to establish separate funds for unorganized workers.
Sections 6 & 7 of the Code on Wages, 2019 deal with regular working hours, weekly day of rest, and overtime provisions.
The Payment of Wages Act, 1936, amended by the Payment of Wages (Amendment) Act, 2017 (effective from December 28, 2016), allows employers to pay wages by cash, cheque, or direct bank transfer. The amendment also enables the government to mandate specific industries or establishments to pay wages only via cheque or bank transfer, through official notification.
Statement 1 is correct. Statement 2 is correct. Statement 3 is correct. Hence, all statements are correct.
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