Orissa High Court Enforces EPF and ESI Benefits for Casual Employees
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Orissa High Court orders implementation of PF & ESI benefits for casual workers !
As far as PF is concerned………….
Many times employers face the dilemma whether a temporary employee should be considered for assessing eligibility under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (the Act).
As per the provisions of the Act, it applies to an establishment employing 20 or more workmen at any point of time during previous year. But the question is whether, an establishment which in usual course does not employ 20 or more workers, but only on some occasions temporarily employs extra staff is to be covered under the Act or not.
Madras High Court in its recent judgement in the case of M/s New Star English School, Nagapattinam has clarified this situation1. Here the Hon’ble court emphatically ruled that since the Act covers casual employees, temporary employees should be considered for assessing eligibility under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (the Act).
As far as ESI is concerned……………
Supreme Court has held that Section 2(22) of the ESI Act covers the “casual employees” employed for a few days on a work of perennial nature and wages as defined in section 2(22) and wage period as defined in section 2(23) does not exclude the wages payable to casual workers. They cannot be deprived of the beneficial provisions of the Act. The employees’ work for the day of racing which is perennial activity of Appellant Club and in view of the provisions of the Act, Rules, Regulations and notification, such employees are covered and consequently are entitled for benefit of the Act.
In the case of Odisha University of Agriculture and Technology, Bhubaneswar and another vs. OUAT Workers’ Union and others; W. A. No. 1689 of 2023
The Orissa High Court delivered a judgment on the applicability of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) and the Employees State Insurance Act, 1948 (ESI Act) to casual employees. The appeal was filed against a judgment by the Single Bench Judge, which directed the management of a prominent agricultural university to extend the benefits of the EPF and ESI Acts to its casual employees.
The university argued that it was exempt from the provisions of the EPF Act under Section 16(1)(b). This section exempts establishments belonging to or under the control of the Central or State Government, whose employees are entitled to the benefits of a contributory provident fund or old age pension as per any scheme or rule framed by the government. They further suggested that disputes related to ESI benefits should be adjudicated by the Employees’ Insurance Court, not through a writ petition. Conversely, the respondents, representing the casual employees, argued that the university failed to meet the criteria for exemption under Section 16(1)(b) since it did not provide provident fund or pension benefits to its casual employees.
The court dismissed the appeal, affirming the Single Judge’s decision.
The court also addressed the argument regarding the jurisdiction of the writ court. It concluded that the writ petition was appropriate in this case, as the core issue was the non-implementation of the EPF and ESI Acts for casual employees, which constituted a violation of Article 14 of the Constitution of India, guaranteeing equality before the law.