NEW DELHI/AHMEDABAD, JAN 19
Holding that an employer cannot differentiate between contractual and permanent employees, the Supreme Court has ruled that casual workers are also entitled to social security benefits under the Employees’ Provident Funds and Miscellaneous Provisions Act.
“As per Section 2(f) of the EPF Act, the definition of an employee is an inclusive definition, and is widely worded to include any person engaged either directly or indirectly in connection with the work of an establishment, and is paid wages,” a bench of Justices U U Lalit and Indu Malhotra said.
The order, which is essentially clarificatory, is part of the SC’s directions to public sector unit Pawan Hans Limited to bring all contractual employees under its PF scheme and provide benefits from January 2017, when the workers’ union had approached court.
The apex court held Pawan Hans liable to pay a simple interest of 12% per annum on the amount payable by it towards PF contribution from January 2017 to December 2019.
Former labour secretary Shankar Agrawal said that labour laws do not discriminate between permanent and contractual employees and employers are mandated to give benefits under PF scheme, even when workers are engaged through other firms.
The labour reforms proposed by the government also include various benefits like health cover and PF for workers in the informal economy like “gig workers”, such as food delivery riders. The proposal is likely to be endorsed by Parliament’s standing committee on labour, which is examining the codes.
Ahmedabad EPFO steps up action against employers for not seeding KYC with PF accounts
To crackdown on the increasing defaults by business establishments in the state in complying with provident fund rules, the regional office of the Employees Provident Fund Organisation (EPFO) on Friday stepped up action against defaulting employers.
According to an EPFO press release issued on Friday, the defaults were by way of non-remittance of the PF, remittance after the delay, non-linking of KYC with the UAN of the employees and not depositing the deducted PF dues from the wages of the employees.
Abhishek Ranjan, Regional Commissioner, EPFO, regional office, Ahmedabad, said that for the convenience of both the employees and employers, the EPFO has started many online services recently like claim settlement, online details correction, online nomination, online KYC etc. Members are requested to avail these online services without visiting the P.F. Offices in person. For availing these services seeding of P.F. No. with Aadhar, bank account and Mobile No. are essential.
However, it is learnt that many employers are not seeding KYC of their employees; due to these members are facing untold difficulties. EPFO has been regularly conducting many awareness camps, meetings and seminars for this, and also social media lile Twitter and Facebook, still many employers failed in their duty.
However, It has been learnt from reliable sources that P.F. office is now contemplating prosecution of the employers for not seeding KYC, especially bank account. Earlier in a similar prosecution case, one employer was sent to jail for 15 days and a fine was also imposed on him.
