Lok Sabha Question No. 176 (UNSTARRED), answered on 2016-07-18
Subject: Contract Workers in Ambit of EPFO
Ministry: LABOUR AND EMPLOYMENT
Asked by: C. N. JAYADEVAN

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 176 TO BE ANSWERED ON 18.07.2016

## CONTRACT WORKERS IN AMBIT OF EPFO

## 176. SHRI C.N. JAYADEVAN:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether  the  Government  is  considering  any  proposal  to  bring contract  workers  under  the  ambit  of  Employees  Provident  Fund Organisation;
- (b)if so, the details thereof;
- (c)whether  the  Government  has  made  it  mandatory  for  the  firms  to ensure  remittances  of  the  provident  fund  pension  and  insurance amounts by them on behalf  of  their  regular  contract  workers  and those employed through contractors and if so, the details thereof; and
- (d)the  details  of  action  taken  including  imposing  of  penalties  by  the Government against the firms failing to do so?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a) & (b): Contract workers are already under the ambit of Employees'  Provident  Funds  &  Miscellaneous  Provisions  (EPF&MP) Act,  1952.  Any  person  employed  by  or  through  a  contractor  in  or  in connection  with  the  work  of  the  establishment  comes  within  the definition of 'employee' as per Section 2(f) of the Act.

- (c): For all establishments covered under Section 1 of the Act under the provisions of Section 6 of the Act read with the Para 26A (2) of  Employees'  Provident  Funds  (EPF)  Scheme,  1952,  remittance  of contributions to Provident Fund, Pension Fund and Insurance Fund in respect  of  all  of  their  employees  whether  regular  or  contractual  is mandatory  for  employees  who  are  members  of  the  Schemes  framed under  the  Act.  As  per  the  provisions  of  Para  30(3)  of  EPF  Scheme, 1952,  it  shall  be  the  responsibility  of  the  principal  employer  to  pay both the contributions payable by himself in respect of the employees directly  employed  by  him  and  also  in  respect  of  the  employees employed by or through a contractor.
- (d): The  following  actions  are  taken  by  Employees'  Provident Fund  Organisaton  (EPFO)  against  the  firms  who  fail  to  deposit  the contributions or administrative charges payable under the Act:
- i. Action  under  Section  7A  of  EPF  &  MP  Act,  1952  against  the defaulting establishments for assessment of dues.
- ii. Action under Section 14B of the Act for levy of damages on belated deposit of dues.
- iii. Action under Section 7Q of the Act for levy of interest on belated remittances.
- iv. Recovery  actions  including  attachment  of  property  and  arrest  as provided under Section 8B to 8G of the Act.
- v. Action under Section 14 of the Act for filing prosecution against the defaulters before the competent court of law.
- vi. Action  under  Section  406  read  with  Section  409  of  Indian  Penal Code  (IPC)  against  the  employer  for  non-payment  of  employees' share  of  contribution  deducted  from  the  wages/salary  of  the employees but not deposited in the fund.

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