The government has decided to get tough with large
employers who increasingly rely on contract workers often without paying
them their statutory dues such as employees’ provident fund
contribution.
As
part of the plan, the Employees Provident Fund Organisation (EFPO) has
asked all the public sector firms to upload on their websites the
details of project contracts awarded to various agencies in a bid to
ensure contract workers get provident fund benefits.
Central
PF Commissioner V.P. Joy, who recently took charge of the Rs. 10 lakh
crore retirement fund body, is expected to send a similar directive to
4,700 private companies employing over 1,000 workers each.
The
move comes amid fresh instances of industrial strife in recent weeks
which were triggered due to pay disparity between contract staff and
regular employees.
The Contract Labour Act requires
employers to pay equal pay and benefits for work done by contract
employees that is similar to regular employees’ role. But its
implementation has been weak and attempts to bring in a stronger law
have been thwarted as government agencies and public sector units also
deploy a large number of contract employees and are reluctant to pay
them more.
EPFO is looking to make public as well as
private sector companies, which are the principal employers of contract
workers, accountable for providing PF benefits.
“It
is often observed that the contractors claim huge amount towards EPF of
contract workers from the principal employer but either do not deposit
it at all or deposit it partly thus depriving these workers of provident
fund, pension and insurances benefits,” Mr.Joy said in a missive to 90 Maharatna, Navaratna and Mini Ratna PSUs last week.
The
letter was also sent to other public sector companies such as National
Buildings Construction Corporation, National Highways Authority of India
and Central Public Works Department (CPWD), among others.
The public sector companies will have to register the details of all contract employers of each project on EPFO’s website.
“It
is the responsibility of the PSUs to see if provident fund is paid by
their contractors to its workers. They can upload contracts on EPFO’s
website which will enable them to check if they are making PF payments
regularly. In this way, all the contract bills will be paid only after
ensuring PF is given to workers,” said a senior EPFO official.
“The
entire information can be viewed and updated by principal employer at
any time. The regional and sub-regional office (of EPFO) will also take
steps to secure compliance of employees engaged by the contractor
towards EPF,” the letter said.
