Page 23 - Plastics News November 2020

remuneration being paid to the employee, the total been preferred.
excluded components should not exceed 50% of the total
Employees State Insurance
remuneration.
ESI is applicable to every establishment in which ten or
The third part of the definition provide limit as the
more persons are employed other than a seasonal
definition very clearly specifies the list of exclusions so
factory. Gig workers, unorganized sectors and plantation
anything which is paid to the employees other than the workers are also brought under the purview of ESI.
exclusion would be covered and within this specific
Gratuity
exclusion the limit cannot be more than 50%.
Gratuity is made applicable to
Definition of 'inter-state migrant worker' expanded to
include self-employed persons: Section 2(41) a) Every factory, mine, oilfield, plantation, port and
railway company;
Apart from a migrant worker recruited through a
contractor, the defnition of 'inter-state migrant worker' (b) Every shop or establishment in which ten or more
includes a person who has come on his own from one employees are employed or were employed, on any day
State and obtained employment in an establishment of of the preceding twelve months; and such shops or
another state. The definition covers workers drawing establishments as may be notified by the appropriate
wages not exceeding eighteen thousand per month or Government from time to time. In the case of an
such higher amount as may be notified by the Central employee employed on fixed term employment or a
Government from time to time. deceased employee, the employer shall pay gratuity on
pro rata basis.
EPF applicable to all establishments with 20 or more
employees: First Schedule of the Code Construction works of less than Rs 50 lakhs
exempted
The Code makes Employees Provident Fund Scheme
applicable to all establishments having 20 or more The definition of 'building and other construction works'
employees. Under the EPF Act, only those does not include works having a total cost of
establishments listed in the schedule having 20 or more construction exceeding Rs 50 lakhs, employing more
employees were brought under the EPF scheme. than a certain notified number of workers(Section 2(6)).
Such constructions are therefore not subjected to the
The contributions paid by the employer to the fund shall
levy of cess for the social security of construction
be ten per cent of the wages for the time being payable
workers under Chapter VIII.
to each of the employees (whether employed by him
directly or by or through a contactor), and the Application of Aadhaar: Section 142
employee's contribution shall be equal to the Aadhaar number is made mandatory for availing benefits
contribution payable by the employer in respect of him and services under the Code.
and may, if any employee so desires, be an amount
Power to defer application of the Code in the event of
exceeding ten per cent of the wages, subject to the
disaster, pandemic etc : Section 144
condition that the employer shall not be under an
obligation to pay any contribution over and above his The Code empowers the Central Government to defer
contribution payable under the Code (Section 16). the application of the provisions of the Code for a period
of three months in the event of a national disaster,
Pre-deposit for appeal against EPF assessment
pandemic or endemic.
The Code provides for appeal against an order passed by
Power to exempt: Section 143
any authority in regard to determination and assessment
of dues and levy of damages relating to Employees' The Code empowers the appropriate government to
Provident Fund by an employer only after depositing exempt any industrial establishment or class of
with Social Security Organisation concerned, twenty- industrial establishments from the provisions of the
five per cent of the amount due from him as determined code.
by the authority against whose order the appeal has (Courtesy: Livelaw)

NOVEMBER 2020 23 Plastics News