With reference to casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
Explanation
Statement 1 is incorrect: While judicial interpretations include casual workers under the broad definition of employees, the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 does not automatically cover all casual workers. It is subject to statutory thresholds (such as establishments employing 20 or more persons and specific wage ceilings). Hence, an absolute entitlement for all casual workers is legally incorrect.
Statement 2 is correct: Under the Minimum Wages Act, 1948 and the Minimum Wages (Central) Rules, 1950, casual labourers are entitled to fixed working hours, scheduled rest days, and overtime wages (at double the ordinary rate of wages) on par with regular workers.
Statement 3 is correct: Section 6 of the Payment of Wages Act, 1936 (amended via the Payment of Wages (Amendment) Act, 2017) empowers the appropriate Government to mandate by notification that employers of any specified industrial or other establishment pay wages solely by cheque or by directly crediting into bank accounts.
With statements 2 and 3 holding true, the official answer is Option B.