IN THE HIGH COURT OF ORISSA AT CUTTACK
BIRAJA PRASANNA SATAPATHY, J
OUAT Workers Union – Appellant
Versus
Union of India and Others – Respondents
W.P. (C) No. 19688 of 2021
Decided On : 27-06-2023
| Table of Content |
|---|
| 1. petitioner's request on esi/epf benefits. (Para 1) |
| 2. historical context of employment and legal demand. (Para 2) |
| 3. opposition arguments against epf/esi applicability. (Para 3) |
| 4. legal provisions supporting petitioner's claims. (Para 4) |
| 5. opposition's additional arguments on pension. (Para 5) |
| 6. context of prior case law relevant to decision. (Para 6) |
| 7. consent for final hearing and proceedings. (Para 8) |
| 8. court's decision for extending benefits. (Para 10) |
JUDGMENT :
BIRAJA PRASANNA SATAPATHY, J.
1. This Writ Petition has been filed by the OUAT Workers Union inter alia with a direction on the Opp. Parties to implement the provisions of ESI and EPF Scheme for the workman working under OUAT from the date of their entitlement.
2. It is the case of the Petitioner that even though around 400 DLR/NMR/Casual employees are working under OUAT for the last 20 years, but when no step was taken to extend the benefit of ESI and EPF in favour of such DLR/NMR/Casual employees, the Union submitted a 8 point Charter of Demands before the Vice Chancellor, Orissa University of Agriculture and Technology (OUAT) on 28.12.2016 under Annexure-1. In the said Charter of Demands available at Annexure-1, the Union in Paragraph 7 of the same makes the following demand:
7. That, the management should introduce EPF & ESI Scheme to all the above workmen according to the EPF & ESI Act.
2.1. It is contended that on receipt of the Charter of Demands available at Annexure-1, Opp. Party No.4 vide his letter dt.18.09.2017 under Annexure-2 requested Opp. Party No.2 to implement the provisions of ESI Scheme for the workmen working under OUAT and to provide the compliance. Similarly, vide letter dt.20.09.2017 under Annexure-3, Opp. Party No.5 requested Opp. Party No.3 to implement the provisions of EPF Scheme in favour of workmen working under OUAT. It was clearly indicated in the said letter that non-enrolment of employees of the Union as PF members is contrary to the provisions of EPF & MP Act, 1952.
2.2. It is contended that on receipt of the communications issued by the ESI and EPF authority under Annexures-2 & 3, Opp. Party No.3 vide her letter dt.10.04.2018 requested the Dean/Principal, OUAT to indicate the financial implication for extending the benefit of ESI and EPF in favour of the NMR/DLR/ Casual employees working under the OUAT. On the face of such communications issued under Annexures-2 to 4, when no action was taken by the University in registering the establishment under the provisions of EPF Act, Opp. Party No.5 once again vide letter dt.25.04.2018 under Annexure-5 requested Opp. Party No.3 to take immediate step for enrolment of the workmen under the provisions of EPF & MP Act, 1952.
2.3. On receipt of Annexure-5, Opp. Party No.3 once again requested the authorities of OUAT to furnish the names and number of casual labourers working under their control. Not only that, when OUAT did not take any action to extend the benefit of ESI & EPF in favour of the workmen, a conciliation was taken up by the Conciliation Officer-cum-District Labour Officer, Khurda at Bhubaneswar. In the said conciliation proceeding, the management of OUAT as reflected in Annexure-7 also agreed to cover all the DLR/NMR workers under the provisions of EPF and ESI Scheme within a period of one month.
2.4. It is contended that in spite of the undertaking given before the Conciliation Officer-cum-District Labour Officer, when no action was taken by the University to extend the benefit of EPF & ESI, Opp. Party No.5 once again vide letter dt.14.12.2018 under Annexure-8 requested Opp. Party No.3 to enroll the workmen under the provisions of EPF & MP Act, 1952 or else suitable action will be taken in the matter.
2.5. As in the meantime, Government in the Department of EPF & ESI vide letter dt. 23.05.2019 requested the Opp. Party Nos.4 & 5 to clarify regarding coverage of EPF & ESI Scheme to the workers engaged under OUAT under Annexure-9, Opp. Party No.5 vide letter dt.30.05.2019
Casual employees of OUAT are entitled to EPF and ESI benefits as per statutory provisions, despite management's failure to enroll them, requiring implementation within three months.
The court upheld the Tribunal's order requiring the petitioner to deposit 40% of the assessed amount, emphasizing compliance with the Employees Provident Funds Act for employee welfare.
The court clarified the application of the EPF Act regarding employee classification and highlighted the importance of natural justice in administrative proceedings.
The employer must ensure EPF contributions for all employees, including those employed through contractors, and must comply with principles of natural justice in assessment proceedings.
Point of Law : Provident Fund is not a tax. It is an amount collectable to the benefit of an individual identified employee as a social welfare measure.
The Appellate Tribunal rightly limited Provident Fund coverage to canteen employees, confirming that casual and contract workers lack a defined employment connection under the Employees Provident Fun....
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