Respected Expert, Please advice..... shall we consider voucher payment employees under PF & ESC Act? Regards, Anant
From India, Pune
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4From India, Pune
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there is no category called "voucher payment employees". plz explain what you mean by voucher payment employees ?
From India, Pune
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From India, Pune
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yes every is covered in ESI No one is exmpted and there is no cat as vr emp
From India, Chandigarh
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From India, Chandigarh
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Dear Kamal, Those employees getting salary in cash and not maintained proper record like personal file and attendance recored with regular employees..... Thanks & Regards, Ananta Karad
From India, Pune
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From India, Pune
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Dear Anant Karad,
What you are doing amounts to unfair labor practice. It is against all labor laws. If you are not maintaining any records, then how do you pay them? You will be in big trouble one day. If you are hiring casual laborers and paying them in cash, then all statutory benefits are applicable.
From India, Pune
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What you are doing amounts to unfair labor practice. It is against all labor laws. If you are not maintaining any records, then how do you pay them? You will be in big trouble one day. If you are hiring casual laborers and paying them in cash, then all statutory benefits are applicable.
From India, Pune
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Dear Anant,
Although there is no exemption provided expressly under the Act, there are case laws holding that casual employees appointed to deal with exceptional circumstances (such as for redemption after a fire incident or for annual painting/color washing, etc.) are not subject to PF & ESI. You may get caught in two ways: if the inspector visits your factory and seeks compliance regarding such casual workers, or if the voucher payment expenses are booked in the wage and salary account head. Inspectors, when they inspect your account, can ask for compliance in this regard.
KK
From India, Bhopal
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Although there is no exemption provided expressly under the Act, there are case laws holding that casual employees appointed to deal with exceptional circumstances (such as for redemption after a fire incident or for annual painting/color washing, etc.) are not subject to PF & ESI. You may get caught in two ways: if the inspector visits your factory and seeks compliance regarding such casual workers, or if the voucher payment expenses are booked in the wage and salary account head. Inspectors, when they inspect your account, can ask for compliance in this regard.
KK
From India, Bhopal
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Whatever mode you make the payment definitely such payment attracts PF and ESI if it is within the wage ceiling of pf and esi
From India, Coimbatore
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From India, Coimbatore
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In my opinion, if a person is engaged for some temporary exigencies and is not engaged for a long period, but paid through vouchers, no PF deduction is required. This has been held in a few cases. However, if engaged for a continuous period, payments made through vouchers are liable for PF deductions.
AK Chandok
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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AK Chandok
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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Dear Anant,
In simple words, if you are giving any amount through a voucher to employees and showing it as salary and wages, then it comes under cover. (Remember: if you are not showing it, it's illegal.) For example, Person X is receiving a total of 10000 on record, and suppose 5000 by voucher payment.
1) PF and ESIC will be only for 10000 (if no voucher payment is booked or shown in the record).
2) If you are showing voucher payment as salary (by any means we can give salary to our employees, by cash, cheque, or salary transfer, etc.), then PF and ESIC cover will be applicable for 10000 + 5000 = 15000. I think it will clear your views.
Anjani Singh
From India, Mumbai
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In simple words, if you are giving any amount through a voucher to employees and showing it as salary and wages, then it comes under cover. (Remember: if you are not showing it, it's illegal.) For example, Person X is receiving a total of 10000 on record, and suppose 5000 by voucher payment.
1) PF and ESIC will be only for 10000 (if no voucher payment is booked or shown in the record).
2) If you are showing voucher payment as salary (by any means we can give salary to our employees, by cash, cheque, or salary transfer, etc.), then PF and ESIC cover will be applicable for 10000 + 5000 = 15000. I think it will clear your views.
Anjani Singh
From India, Mumbai
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Friend,
All employees are to be covered under all labor laws, irrespective of how you pay and how you try to hide such payments. In fact, there is no category called "Voucher Paid employee." What you mean by voucher payment appears to those who are not brought in the wage register or muster roll. Not covering them under ESI/EPF, etc., is a violation of the law and also a criminal offense, but also a violation of the Payment of Wages Act, fact act/rules, and various other laws. It is true that often you may have to engage a person for a day or two or even a few hours, and you may not include them in the Permanent employee's register, but you need to have a separate register for "Temporary/Casual and Badli workers," indicating their wages, period of work, etc., and need to comply under ESI/EPF.
I do not agree with Kknair that there are Court judgments saying that such employees need not be covered. The majority of judgments of the Supreme Court and High courts emphatically stated that all workers, whether employed as casual, temporary, or through a contract, need to be covered under ESI and EPF. In fact, he may be referring to a particular case where the court talked about "birds of passage," which is not the law laid down. Please remember that accidents (which may result in death or permanent disability) are not based on seniority or manner of payment of wages and can happen to anyone at any time, and you can't just throw out the body of a victim outside the gate. In fact, more accidents happen to untrained, insecure casual workers.
O Abdul Hameed
Formerly Addl. Commissioner ESIC
Email: oahamid@yahoo.com
From India, Coimbatore
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All employees are to be covered under all labor laws, irrespective of how you pay and how you try to hide such payments. In fact, there is no category called "Voucher Paid employee." What you mean by voucher payment appears to those who are not brought in the wage register or muster roll. Not covering them under ESI/EPF, etc., is a violation of the law and also a criminal offense, but also a violation of the Payment of Wages Act, fact act/rules, and various other laws. It is true that often you may have to engage a person for a day or two or even a few hours, and you may not include them in the Permanent employee's register, but you need to have a separate register for "Temporary/Casual and Badli workers," indicating their wages, period of work, etc., and need to comply under ESI/EPF.
I do not agree with Kknair that there are Court judgments saying that such employees need not be covered. The majority of judgments of the Supreme Court and High courts emphatically stated that all workers, whether employed as casual, temporary, or through a contract, need to be covered under ESI and EPF. In fact, he may be referring to a particular case where the court talked about "birds of passage," which is not the law laid down. Please remember that accidents (which may result in death or permanent disability) are not based on seniority or manner of payment of wages and can happen to anyone at any time, and you can't just throw out the body of a victim outside the gate. In fact, more accidents happen to untrained, insecure casual workers.
O Abdul Hameed
Formerly Addl. Commissioner ESIC
Email: oahamid@yahoo.com
From India, Coimbatore
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