Dear Seniors,
Warm Greetings and High Regards to You!
We belong to the Pharma Research Industry. We are performing research on healthy human beings. We have in-house doctors, nurses, custodians, and lab technicians properly employed as per the Shops and Establishment Act. We have a CTC style of preparing the pay process. 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 for the 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 them as and when there are requirements. They come, work, and get paid for the number of hours they work. For example, we pay Rs. 92/- per hour of their work.
Do we have to classify them as contract employees, part-time employees, or just need-based workers? In such cases, should we have to deduct PF and ESI for them? However, we are deducting TDS and paying them.
If PF and ESI should be paid, how do we determine the structure of their basis? Because PF has to be paid on the basic (12%).
Some of my officials say they are working on a time basis, hence they are not contract workers, so no PF is applicable. Some of my other officials say they are working for the company and contributing to our services, hence PF has to be deducted.
Please clarify my queries on an urgent basis.
I would be grateful for your answers and suggestions.
With Best Regards,
Devi Balaji
From India, Madras
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6Warm Greetings and High Regards to You!
We belong to the Pharma Research Industry. We are performing research on healthy human beings. We have in-house doctors, nurses, custodians, and lab technicians properly employed as per the Shops and Establishment Act. We have a CTC style of preparing the pay process. 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 for the 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 them as and when there are requirements. They come, work, and get paid for the number of hours they work. For example, we pay Rs. 92/- per hour of their work.
Do we have to classify them as contract employees, part-time employees, or just need-based workers? In such cases, should we have to deduct PF and ESI for them? However, we are deducting TDS and paying them.
If PF and ESI should be paid, how do we determine the structure of their basis? Because PF has to be paid on the basic (12%).
Some of my officials say they are working on a time basis, hence they are not contract workers, so no PF is applicable. Some of my other officials say they are working for the company and contributing to our services, hence PF has to be deducted.
Please clarify my queries on an urgent basis.
I would be grateful for your answers and suggestions.
With Best Regards,
Devi Balaji
From India, Madras
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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. The only exception is in respect of persons engaged under the Apprenticeship Act, 1961. All are employees within the meaning of said Acts. In the 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 the limit as laid down under said Acts. So far as the ESI Act is concerned, it has been mentioned in Rules as to how to calculate the average daily wages in respect of so-called piece-rated/time-rated, etc., employees.
Non-compliance under the above Acts in time may result in the levy of damages even up to 100%, as well as interest as laid down under relevant rules. Hope, to avoid such penalties, you/your establishment may contact the appropriate authorities as established under the above Acts and get the records verified with reference to the position of coverage and compliance under said enactments.
From India, Noida
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Non-compliance under the above Acts in time may result in the levy of damages even up to 100%, as well as interest as laid down under relevant rules. Hope, to avoid such penalties, you/your establishment may contact the appropriate authorities as established under the above Acts and get the records verified with reference to the position of coverage and compliance under said enactments.
From India, Noida
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Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc
PF for foreign employees 1.10.08.pdf