Who is the principal employer under the PF act?
As per the provision of laws, the one who has more than 20 employees working is responsible for having registration with PF authorities. It is made mandatory under the EPF Act. Here one needs to know that the government has made specific provisions for offering benefits of labour laws to the working class. As per these provisions, those employers under whom the employees are directly working are responsible for their PF registration and not the owner.
Hence in any company, if there are people who are hired under a contract, the owner of the company is not responsible for the PF registration as he has hired them on contract. They are the people working under a contractor, and hence the contractor for whom they work is responsible for their PF registration. As a part of labour law compliance India, this is mandatory to have with such a contractor, and the owner of the concerned company is nowhere responsible.
As per the EPF act, there are also certain conditions under which the owner or employer is not responsible for the PF dues or provision for PF for the employees who work on a contract. For having various benefits of labour laws, it is necessary for one to get registered under the EPF act whether he works in a company or on a contract. However, at the same time, one needs to know that in the same organization, he must have the required number of employees who earn wages from the company or the contractor as the case may be.
For those contractors who have more than 20 employees on the payroll and want to get them registered under the EPF Act, the labour law compliance services can be of immense help. One can hire the expert of contract labour laws to set the process straight forward and be compliant with legal provisions.
What is contractual Labour?
If termed in simple terms, contractual labour is one who works on specific days or hours and not a part of any organization directly. Such a person may be a part of a team of any labour contractor. There is no specific type of job mentioned in the contract labour laws also. Hence one can say that it implements to anyone who works for a certain amount of wages in any manual or labour work for any day or hours of a day. As per the labour law compliance services, one needs to have specific provisions for such employees only if they are under direct employment and not on contract as in many cases; the contractors also have people on contracts from other contractors.
As per the provisions of contract labour laws, those who are in direct and regular employment can be provided with the benefits of labour laws and not those who are casual workers. Hence it means that as per the EPF act as well as the contract labour laws, the beneficiary must be a regular employee for any specific tasks or any other which is specified by the concerned employer. To have the best labour law compliance, the companies or labour contractors need to provide all necessary information to the PF as well as the ESI department that can help the employees to have the benefits of labour laws.
What are the objectives of the contract Labour ACT 1970?
Being a welfare state in the modern era, the prime objective of the contract labour act 1970 is to safeguard the interest of the employees and help them get better facilities and life from the employer. It also aims to avoid exploitation of the employees under the name of employment and save their lives from the uncertainty of the future. Hence the benefits of labour laws are many if they are taken into account in their true sense. As per the objectives of the contract labour act, the safety of the financial health of the employees as well as physical health is also taken into consideration.
It also aims at proper employment practice in the society, and hence one needs to have registration or license for concerned service. In case of any noncompliance, there may be a cancellation of the registration or revocation of the license by the relevant authority. The contract labour act also fixes the responsibilities of the contractor to safeguard the interest of those who work under him as a part of the contract. Hence those contractors who have the best labour law compliance can enjoy the rights and healthful working environment while those who are not much caring to their employees may be stopped from working under this provision.
For the contractors, it is necessary to take the required responsibilities before going for work. The best labour law compliance can help them get contracts easily and work smoothly. For large organizations, such contractors are preferable as they are fully compliant with contract labour laws.
Benefits of labour laws
When there are many provisions and regulations made for the improvement in the conditions of laborers or employees, it is necessary to know the benefits of the labour laws also. Though one can predict that they are for the betterment of the condition of the employees, it is not the only benefit. There are many more benefits associated with these labour laws that can prove helpful to the employees, employers, and contractors as well as society as a whole. The law was enacted in the past, but with the change in time, there are various amendments done, which have made the law more relevant with time and changes in different industries as well as changing wages, skills and required facilities for better living.
Rights of employees and employers: With the help of EPF as well as contract labour laws, the state act as a regulatory and this can help employers and employees to have rightful work. These acts lay guideline, which describes the rights and responsibilities of both parties and have smooth work in society. On the part of the employers, it gives responsibilities to have a better work environment while on the part of employees; it ensures the right to have a smooth work culture and safety while on duty. Rights of leaves, wages, and the provident fund can help the employees to have better work standards and culture, and on the other end, it ensures to have rightful work to have with the concerned employers.
Prevention of child labour: Child labour is considered as a big menace and not in accordance with the welfare state. It is believed that one cannot force the child below a certain age to work as it has the right to education. Those who hire such children as workers are termed as illegal organizations, whether it is a company, an individual, or a contractor. To safeguard the future of the nation, it is necessary to keep the children safe and not to make them involved in any jobs or works for monetary benefits by anyone. These laws can be instrumental in assuring the rights of children.
Proper compensation of work and reasonable hours: Many times employees have to work as they cannot have any other source of income, and people or organizations which can offer work try to take undue advantage of such workers. To avoid such a situation and save workers from being exploited, these acts can work as a good instrument. As per the EPF act and Minimum wages act, there are standards set according to which one needs to pay a certain amount for specific types of jobs or work hours. Hence the workers get proper compensation for their efforts and work for the hours specified in the laws. It helps both the employers as well as employees as the employers can know how much it will cost if they hire certain people while employees can plan their earnings and act accordingly.
Prevention of discrimination: As a free state, there must be no discrimination while offering a job or work to anyone unless and until the exceptional situation forces. Hence these acts can make sure that people get equal work opportunities irrespective of caste, creed, sex, religion, or race. However, laws surely prevent children from obtaining employment in accordance with the principles of a welfare state. Other than that, they make sure that everyone, irrespective of education, skills, and area, gets the opportunities that can be said open for all and equal.
Prevention of exploitation: Many employers take undue advantage of their work, especially women and children. These laws are made to safeguard the interest of such workers and hence lay guidelines, which help them to have safe work and restrict such employers from illegal practices for personal interest. They also have provisions for a specific category of workers to have desired safety tools and regulations, which can help them in staying safe while on work.
To have a better work environment and social justice: EPF and contract labour act help to have a better work environment, whether it is a small organization or large company. Necessary provisions for the ease of work must be made as per these acts, which can help both parties. EPF also helps one to save for future and counter unexpected situations.
Hence from the viewpoint of better working conditions and welfare of society, both of these laws are very much important and instrumental towards the development of the state.