Bringing Unskilled Workers under the Ambit of PF and ESI

As per section 7 of the Industrial Disputes Act, 1947, ‘the appropriate Government may, by notification in the Official Gazette, constitute one or more Labour Courts for the adjudication of industrial disputes and for performing such other functions as may be assigned to them under this Act’. Thus, the primary function of Labour Courts is to adjudicate on industrial disputes. So long as industrial disputes continue to exist, labour courts are relevant. 

The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 is applicable to all employees working in such establishments which are employing 20 or more workers and is falling under any of the Schedule Heads or class of establishments notified by the Central Government and getting wages up to Rs.6500/- per month without any reference of being skilled or unskilled. The Act is uniformly applicable all over India except in the State of Jammu & Kashmir. 

The Employees’ State Insurance Act, 1948 applies to factories employing 10 or more persons and certain specified establishments such as shops, hotels and restaurants, cinemas and preview theatres, road motor transport undertakings and newspaper establishments etc. employing 10/20 or more persons. Employees of such factories/establishments drawing wages upto Rs. 15000/- per month are covered under the scheme. The Act does not make any distinction between skilled or unskilled workers. 

There is no such proposal. However, Government is contributing 1.16% in Employees’ Pension Scheme, 1995. 

The Minister of Labour and Employment Shri Mallikarjun Kharge gave this information in reply to a question in the Rajya Sabha today.