devibalahrd
6

Dear Seniors,

Warm Greetings & High Regards To You!

We Belong To Pharma Research Industry. We Are Performing Research In Healthy Human Beings. We Have Inhouse Doctors, Nurses, Custodians, Lab Technicians Properly Employed As Per The Shops And Establishment Act. We Have A CTC Style Of Preparing Payprocess. Also We Are An MNC.

My Query Is Related To The Employees Whom We Engage For The Need Basis. For Example, When We Do Research, We May Require External Nurses, Doctors, Custodians To Support Our Activities In Addition To Our Regular Staff. They Are Paid On Hours Of Time They Work. For Example, There Are Nurses Who Work For 2 Hours In A Day And There Are Nurses Who Work For 20 - 30 Hours In A Week. We Call Him As And When There Is Requirements. They Come, Work And Get Paid On The No. Of Hours They Work. For Example We Pay Rs.92/- Per Hour Of Their Work.

Do We Have To Call Them As Contract Employees Or Part Time Employees Or Just A Need Based Workers. In Such Case, Should We Have To Deduct PF & ESI For Them? However, We Are Deducting TDS And Paying Them.

If PF & ESI Should Be Paid, How To Arrive The Structure Of Their Basis. Because PF Has To Be Paid On The Basic (12%).

Few Of My Officials Say They Are Working For Time Basis, Hence They Are Not Contract Workers, Hence No PF Is Applicable.
Few Of My Other Officials Say They Are Working For The Company And Contributing On Our Services, Hence PF Has To Be Deducted.

Please Clarify My Queries On Urgent Basis.

I Would Be Grateful For Your Answers And Suggestions.

With Best Regards
Devi Balaji

From India, Madras
Harsh Kumar Mehta
923

1. Dear member, the laws namely-E.S.I.Act, 1948 and EPF&MPs Act, 1952 and rules/regulations framed thereunder make no distinction between casual, temporary, work-charged, hourly/daily etc. paid employees. All are employees even though they may be working on time-rated or piece-rated or what you have called as need-based. Only exception is in respect of persons engaged under Apprenticeship Act, 1961. All are employees within the meaning of said Acts. In ESI Act, 1948 there is one more exception in respect of non-implemented areas. You are required to make compliance in respect of all such employees provided their wages are within limit as laid down under said Acts. So far as ESI Act is concerned, it has been mentioned in Rules as to how to calculated the average daily wages in respect of so called piece-rated/time-rated etc. employees.

2. Non-compliance under above Acts in time may result into levy of damages even upto 100% as well as interest as laid down under relevant rules. Hope, in order to avoid such penalties, you/your establishment may contact the appropriate authorities as established under above Acts and get the records verified with reference to position of coverage and compliance under said enactments.

From India, Noida
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