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ramanujan27 (avp)     10 August 2012

Contract labour epf

Dear Sir,
we are working as contractual officers in a large PSU bank. Our contract is renewed every 2 years. We get fixed as well as variable pay. But as per the contract we are not eligible for Provident fund. We are directly on contract with the bank. There is not intermediate contractor of any sorts. And our pay per annum is Rs.6 lakhs for first contract period (Of course there would be increments for subsequent renewal of contracts). Can you please tell us, whether it is legal for the bank to not provide us with the benefit of EPF?


 


Learning

 2 Replies

Manindra Singh (Chief Manager IR)     10 August 2012

It looks like that you are on fixed term employement with the Bank. Further, the fixed term employment should be ideally for specific time bound projects. You have not mentioned since how many years your are working with the bank, any way its not very relevant for the issue raised by you.

You will fall under the definition of employee under PF and Misc. provisions Act, thus PF Act should be applicable to you. No contract can be in violation of the existing law of the land. Thus, even if in the contract of employement it is mentioned that PF will not be applicable it does not absolve bank for the statutory obligation under The PF ... Act. 

 

Thanks,

Manindra Singh

Sudhir Kumar, Advocate (Advocate)     20 August 2012

Banking industry is not coverable under EPF. 

 

Hoqwever if oter employees are voluntarily covered then you are also coverable.


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