A perspicacious topic on PF Act

This is very interesting  topic  on EPF & Misc Act 1952.   The  case against a Builder for non payment of  PF  to the tune of Rs.9.36 Crore  is pending  before  the High Court of Bombay.

Basically  the Act is applicable  for the establishment  where more than 20 persons employed.   It is a  social beneficial legislation.  From the date of  enactment  till date  there are lot of  unresolved issues / disputes  because of  ambiguity  or   there is no alternative solution  is available in the Act.

Coming to the point :   This  act  can be implemented strictly to an  established  unit  situated permanently.  It is very difficulty  to  apply for the  time bound contracts,  limited work  period  etc.,   INDIA  is  still  developing country and  will be  developing only. 

In India  there are  migrant labourers  from one place to another place and one state to another state  even from one country to another country like from Bangladesh,  Nepal  labourers are   entering India for their  daily bread and butter. 

The  Labourers  know how to work only.  They don’t know  about  what EPF Act,  what Minimum wages Act.,  what  Contract Employment Act. and what   ECS, etc …etc…  Entire day they work  hard and by  evening  they  stretch their hand for  few bucks  to fill their  hungry stomach.

For example,  some  labourers   are working  at  place ‘A’ for  some construction work.  Their  nature of work is  carrying  sand,  bricks, stones, iron  from one place to another place,   one floor to another floor,  mixing  cement  and watering,  etc.,,   The said place  ‘A’ comes under  jurisdiction of   “X”   labour inspector  area.   After  9 months, the entire work  iscompleted and there is nothing  remain   for the workers  to continue.   Once the  particular  project  is over,  all these workers  have to  go  on search for another work.    Suppose  they got  another  Bridge  Construction  work  at  Place ‘B’ which  is 1500 km away from the  palce of  ‘A’  and the  jurisdiction of  the labour inspector  is  ‘N’.

Practically  is  it  possible  in India  to monitor  for payment of  EPF  for  all  those  labourers.   If EPF is  paid  then  ESI  etc.,  etc., .   Suppose the  contractor  is  law abiding  person   and  even though  the   work is for limited period ,  he  is ready to pay ESI , EPF and any other  statutory payment.   The  trouble, pain and suffer  involved in getting registration  under  various acts   ( it can be explained  by  the person  actually  involved  than non other) is enormous.  If you go  for registration,  it  is  horrible  to comply the requirement of the department and  above all,   the   DONATION  to the  officers of the Labour Dept is mandatory.  Without  that   no one can  get  any  support  except  harassment from them.

OK finally  the  contractor  got the  registration for the labourers and paid  the  PF.   After completion of the  work,  is the concern  PF  dept  voluntarily  go and  handover the  PF money to all the labourers.  Because  they are not permanent  residents.  Theirs is not a permanent  job,  they are migrating  from one state to another state .  The jurisdiction  state  is  also changing  time to time.  They are not having any permanent  address,  they don’t have any  ID proof,  they  don’t have  Election Card,  they never put  vote in their life time,  they are not in the  voters list.  They  are crores n crores in India.

Every state is having their own system of law.  Own  laws and  own amendments. There is  no  uniformity.  There is no  cordial relations between the states.

Each state Govt ,  each politician,  each  Advocate,  each judge  and  finally  each employee of  the  Labour Department  are aware  of the fact.    If any  officer  of the labour  dept  files  case against  the contractor or builder  is nothing but  to create harassment   and trouble.  The  reason  behind this  is also  we can understand that  the particular officer of the  labour dept  was / is not paid .

If any case comes before the court,  why  courts are not directing the govt  to rectify the gaps of the Act,   why court are also simply  conducting  trials  for  years  together.  By the time  of the out come of the Judgement,   the project / unit    may  be ready for  renovation  or  for re-development.

In the case pending  before the  Hon’ble High Court of Bombay,  the builder is ready to deposit the  entire money and he  is  requesting that  the same should reach  the correct person.    Generally  the Builder  call  contractors  to  carry  out  work  -  the contractors  will call sub contractors -  the  sub contractors   call  labour  suppliers -   the  labour suppliers  may supply   those labourers   who ever  approach him for getting work.

It is also similar practice  or  process  for    getting  labourers  for  public  contracts.

For  Public Contracts,  like  Bridge / Dam / Roads /  Bridges etc.,   Government is the principle employer.  Is  Govt   insisting  the contractors for  PF or ESI payments.  Is Govt  making provision to it.  If not why  the govt  can harass  the  private  Employers.

Our Senior & eminent   Advocates and  Judges  are not recommending or  raising  their voice or  no demand  to rectify  / amend  Acts  for  real  benefit  of the  real  employees. The first  step is to  wipe out corruption  from the roots.