Haryana Government ensures welfare of contratual employees

by Haryananewswire (Balbir)

CHANDIGARH, AUG 25

The Haryana Government being a model employer, has laid emphasis on ensuring welfare of contractual employees either engaged on contract basis directly by Government Departments or  Public Sector Undertakings or through different contractors or service providers, when a particular service is outsourced or persons are engaged against vacant posts or even non-existent posts in some exigency.

          While stating this here today, a spokesman of Haryana Government reiterated the commitment of the State Government to ensure compliance of provisions of all Labour Laws like Minimum Wages Act, Employees State Insurance (ESI) Act, Employees Provident Fund (EPF) Act wherever applicable.

          He said  that when a Government Department engaged any person directly on a period specific contract, it was not covered by the provisions of ESI, EPF Acts, and thus was not required to seek registration under these Acts. Therefore, the Minimum Wages Act would be applicable in all cases. However, the Departments that outsourced certain services or hire workers through a contractor, service or manpower provider would ensure that the_. service provider or contractor was a license holder under the Contract Regulation and Abolition Act, 1970.

          He said that in the case of outsourcing of services, the service provider himself would be the Principal Employer and in case of the manpower provider or contractor it would be the immediate employer and the Government Department would be the principal employer. He said that the service provider or contractor would supply monthly dossier containing details of the worker, amount paid and proof of the deposit in relation to EPF and ESI. The Contractor or Service Provider would make all the payments to the employees through Account Payee cheque or direct bank transfer. He said that in case the service provider or the contractor defaulted, the department might consider terminating the contract as per terms and conditions of the agreement forthwith. Also, for a contractor supplying workers or manpower, the Government Department as the Principal Employer became responsible to make such deposits and make necessary deductions from the payment to be made to the contractor, in case the contractor defaulted in compliance of ESI, EPF Acts and failed to deposit the dues with the concerned authorities, he added.

          He said that the same method would be adopted by all Public Sector Undertakings (PSUs) while engaging service providers or contractors. The PSUs would not be exempted from the applicability of the EPF or ESI Acts in case workers were engaged directly on contract by the PSU in accordance with any instructions in this regard. He said that in such a case, it was the PSU's responsibility to get registered with the EPF and ESI authorities for the purpose of complying with these Acts. Also, the PSUs were required to comply with the provisions of Contract Regulation and Abolition Act, 1970 and get registered with the relevant authority.

          He said that for Employee Provident Fund deduction from wages was at a rate of 12 per cent and the Employer's Contribution is at a rate of 12.61 per cent. Similarly, ESI deduction from wages was at a rate of 1.57 per cent and the Employer's contribution was at a rate of  4.75 per cent, he added.

          He said that all Head of Departments have been directed to ensure compliance of these instructions.