Question map
With reference to casual workers employed in India, consider the following statements : 1. All casual workers are entitled for Employees Provident Fund coverage. 2. All casual workers are entitled for regular working hours and overtime payment. 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the above statements are correct?
Explanation
The correct answer is Option 2 (2 and 3 only). This is based on the following legal frameworks in India:
- Statement 1 is incorrect: Under the EPF Act, 1952, coverage is not universal for "all" casual workers. It generally applies to establishments with 20 or more employees. Furthermore, workers earning above a certain wage ceiling (currently ₹15,000) may be excluded unless they were already members.
- Statement 2 is correct: The Minimum Wages Act and the Factories Act provide that any worker, including casual labor, is entitled to fixed working hours. Work performed beyond these hours must be compensated with overtime payment, usually at double the ordinary rate of wages.
- Statement 3 is correct: According to the Payment of Wages (Amendment) Act, 2017, the appropriate government can notify specific industries or establishments to pay wages exclusively through bank accounts or cheques to ensure transparency and prevent exploitation.
Therefore, while statements 2 and 3 represent statutory rights and powers, the universal claim in statement 1 is legally inaccurate.
PROVENANCE & STUDY PATTERN
Guest previewThis question is a classic 'Heuristic Trap'. Aspirants blindly eliminating 'All' (Statements 1 & 2) got slaughtered. The question asks about 'Legal Entitlement' (Theory), not 'Ground Implementation' (Reality). In Indian Law, definitions of 'Employee' are broad and inclusive; therefore, statutory rights often extend to 'All' casual workers, even if enforcement is weak.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Are all casual workers employed in India entitled to Employees' Provident Fund (EPF) coverage under Indian law?
- Statement 2: Are all casual workers employed in India entitled to regular working hours and overtime payment under Indian labour laws?
- Statement 3: Can the Government of India, by notification, require establishments or industries employing casual workers in India to pay wages only through bank accounts?
- Explicitly states the Social Security Code expands coverage to "all workers", which would encompass casual workers.
- Specifically includes provident fund benefits as part of the coverage extended to all workers.
- Specifies the Code on Social Security, 2020 provides social security coverage to all workers, naming PF (Provident Fund) among benefits.
- Reinforces that gig and platform workers — categories analogous to casual/unorganized workers — are included.
States the statutory trigger for EPF: establishments with more than 20 workers must register with EPFO, and only employees with salary up to Rs.15,000 contribute to EPF—implying not every worker in every workplace is automatically covered.
A student could combine this with the fact that many casual workers earn daily wages or higher/lower pay to infer that some casuals (in small workplaces or above the salary threshold) may be outside mandatory EPF coverage and thus test the statement.
Explains the Code on Social Security rule: EPFO coverage applies to establishments having 20 or more workers and smaller establishments may join voluntarily—showing coverage depends on establishment size.
By noting that many casual workers are employed in small establishments or the unorganised sector, a student can suspect that many casuals lack mandatory EPF entitlement and seek confirmation.
Defines casual workers as daily-wage employees who are not given social security benefits like provident fund, explicitly linking casual status to typical exclusion from PF.
A student could use this definition plus data on the composition of casual employment to judge whether 'all casual workers' would realistically be covered by EPF.
Notes absence of regulations protecting freelancers and mentions lack of retirement benefits for many workers in gig/informal economy, indicating gaps in social security coverage for non-regular workers.
Combine with knowledge that casual workers often work informally or in gig arrangements to infer many may be outside statutory EPF coverage, prompting targeted verification.
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