Economy : Unemployment

Q 2 / 3

UPSC CSE Prelims 2021

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

Correct Option

Statement 2 is correct. The Code on Wages, 2019, consolidates laws relating to wages and applies to all employees, including casual workers. It mandates entitlements such as regular working hours, weekly rest, and payment for overtime work.

Statement 3 is correct. The Payment of Wages Act, 1936, as amended by the Payment of Wages (Amendment) Act, 2017, empowers the appropriate government to specify, by notification, that wages to employees in any establishment or industry shall be paid only through bank account or by cheque. This provision aims to promote transparency and reduce cash transactions.

Incorrect Options

Statement 1 is incorrect. Not all casual workers are covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Coverage under EPF is generally mandatory for establishments employing 20 or more persons. Many casual workers are employed in establishments that do not meet this threshold or are engaged in the informal sector, thus falling outside the mandatory EPF coverage.

SOURCEIndian Economy by Ramesh Singh, Chapter on Labour and Employment