Supreme court: EPF provision applicable to private company providing expert service

The issue before the court was whether Employees’ Provident Funds and MiscellaneousProvisions Act apply to private agent providing personnel service under EPF Act.

Justices Navin Sinha and Surya Kant observed that Private Security Agencies (Regulation) Act, 2005 defines a private security agency under Section 2(g) as an organization engaged in the business of providing security services including training to private security guards and providing such guards to any industrial or business undertakings or a company or any other person or property.

The court states that question is no more res integra evident  from the discussions contained in Group 4 Securitas Guarding Ltd. vs. Employees Provident Fund Appellate Tribunal & Ors.,184 (2011) DLT 591, G4S Secure Solution India Pvt. Ltd. vs. The Regional Provident Fund  Commissioner­ and Ors., ILR 2018 Karnataka 2527, Orissa State Beverages Corporation Limited vs. Regional Provident Fund Commissioner & Ors.2016 LLR 413

The bench held that Employees’ Provident Funds and Miscellaneous Provisions Act are applicable to a private security agency engaged in the expert service of providing personnel to its client, if it meets the requirement of the EPF Act, and appellant has more than 20 employees on its roles and hence, provisions of the Act therefore necessarily apply to it.

The appeals are therefore dismissed and the interim order dated 12.05.2009 restraining coercive steps for enforcement of the demand notice dated 15.04.2009

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s