EPF Authority has to Determine the Contributions after Identification of Employees

EPF Authority has to determine the contributions after identification of employees, please find judgement copy attached & key point of the same

Case Name -  Commissioner, Virudhachalam Municipality vs. Secretary, Department of Ministry of Labour Employment, New Delhi and Others

Important Point

• Benefits of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, are applicable to employees engaged through contractors and employees from 08.01.2011 who are not covered under the Tamil Nadu District Municipalities Act, 1920 or any other such beneficial Act.
• EPF Authority has to determine the amount of EPF contributions on the basis of records maintained by the contractors after giving full opportunity to employer, contractors and all concerned persons.
• The Principal employer cannot shirk responsibility either to identify the eligible workers/employees engaged through contractor or to pay benefits available under the Act in accordance with law.
• Principal employer may file an application before the EPF Authority to summon the concerned contractors or any other person for identification of employees.
• EPF Authority has to determine the amount of EPF contributions as per provisions of the Act after identification of employees.
• The Principal employer is under legal obligation to remit the amount of EPF contributions if the same is not remitted by the contractor and principal employer, in turn, may recover the same from the principal employer.