Simply that a principal employer has deposited statutory
dues viz. Provident Fund contribution on its own code number for the workers of
contractor, it cannot entitle those contract labour for seeking their regularization.
In one of the case of Hon’ble High Court of India, it has
been clarified that the principal employer has discharged its obligation in
paying the provident fund contributions of the workers of contractor; then in
that scenario it cannot be a ground for regularization of workers of the
contractor since the principal employer can recover the amount, as paid, from
the contractor. Under section 2(f) of the Employee’s Provident Funds Act, 1952,
which defined the expression ‘employee’ as, any employee is included by or
through a contractor in connection with the work of the establishment.
Therefore, the liability to pay the provident fund would arise even in respect
of an employee under a contractor. Under section 3A, the amount of contribution
paid or payable by the employer may be recovered by the employer from the
contractor either by deduction of any amount payable under the contract or a
debt payable by the contractor. Therefore, it is clear that the liability to
pay provident fund is mainly on the principal employer and thereafter it is
open to the employer to recover from the contractor. Thus, the fact that the
employees are covered by the provident fund scheme is not relevant for deciding
the status of the petitioners.
There is one more case where it has been held that merely
the principal employer is depositing Provident Fund / Employee’s State
Insurance contributions, providing medical facilities and uniform/shoes which were in terms of the Award of the Wage
Board and also under the requirement of Factories Act besides the directions
given under section 33C(2) of the Industrial Disputes Act, these will not be
the factors construing that the relationship of employer and employee existed
between the principal employer and the workers as engaged through the contractors.
Hope this small write up will give insight about pertained
subject.
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