Are all statutory benefits applicable to FTEs also?

Labour, HR & Safeguarding
1

Are all statutory benefits applicable to FTEs also?

2

Fixed term employment (FTE) is defined in SS Code as an engagement with written contract of employment for a fixed period provided that—hours of work, wages, allowances and other benefits shall not be less than that of a permanent employee doing same/similar work; and shall be eligible for all benefits, under any law for the time being in force, available to a permanent employee. Additionally, FTE is eligible for Gratuity upon 1 year of continuous service.

CS Sharad Bhargava

3

If FTEs do not wish to take the statutory benefits such as ESIC and EPF, is there any procedure to exempt that or what can be the alternative in that case?

4

Thanks for your query. The comp and benefits to FTEs have to be the same as for regular employees, FTEs cannot forgo their comp and benefits even if they wish to. If the FTE has never been a member of EPFO and his/her wages is more than PF threshold wages of Rs.15k, it may be an excluded employee with consent in which case EPF may not be applicable. Also, if his/her wages (as per definition of wages in Wage Code) is more than 21k per month, ESIC would not be applicable.

CS Sharad Bhargava