SC: Working offsite doesn’t affect “employee” status of piece rate workers

The Hon’ble Supreme Court, on 24thJuly 2019, in the matter of The Officer In­-Charge, Sub­Regional Provident Fund Office & Anr. v. M/s Godavari Garments Limited observed that where the workers are paid wages on per-­piece basis for the services rendered (Piece rate workers), merely because the workers are  permitted to do the work off site, would not take away their status as employees.

The Hon’ble Supreme Court observed that:

The definition of “employee” under Section 2(f) of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952is an inclusive definition, and includes workers who are engaged either directly or indirectly in connection with the work of the establishment, and are paid wages. (Para 6.9)

Where the workers are paid wages on per-­piece basis for the services rendered, merely because the workers are  permitted to do the work off site, would not take away their status as employees. (This inference has been drawn on the basis of Para 6.9)

Copy of judgement: Judgement_24-Jul-2019

-Tushar Kaushik

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