Principal Employer is not responsible for PF Contributions of Contract Workers


Principal Employer is not responsible for PF Contributions of Contract Workers
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Thursday, January 19, 2017
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Dear all,

​One of our member and leading Consultant Shri Ashwin Shah of Vapi has forwarded an order passed by Hon'ble High Court Delhi. 

In Writ Petition of Group 4 Securitas Guarding Ltd. vs Employees Provident Fund, Hon’ble High Court Delhi has observed and ordered that

 “Principal Employer is not responsible for PF Contributions of Contract Workers"​

 “IF Contractor has ultimate control over the affairs of its establishment, then Principal Employer is not responsible for Provident Fund Contributions of Contract Workers.

When the contractor is an independent legal entity with a large workforce and engaged in providing services to various clients, the onus to make provident fund is not on the principal employer nor will a principal employer be held liable in case of non-compliance.”

This is a very landmark order of Hon’ble High Court Delhi, the soft copy of the detail order is attached herewith for your kind reference. So, you are requested to go through the order in detail.

Thanking you,
With regards,

For Silvassa Industries & Manufacturers Association, 

Narendra Trivedi,
Secretary


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