There is an uproar over which decision of the Karnataka High Court, will thousands of workers be affected? - Newztezz Online

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Wednesday, May 8, 2024

There is an uproar over which decision of the Karnataka High Court, will thousands of workers be affected?

Paragraph 83 of the Employees' Provident Fund Scheme, 1952 deals with special provisions in respect of international workers. Under this provision, from October 1, 2008, every international employee whose basic salary (basic salary and dearness allowance) is up to Rs 15,000 per month will compulsorily come under the scope of this scheme.

A big decision of Karnataka High Court related to EPF has come out. Which is causing a lot of noise. In fact, this decision has come 15 years after the amendment in the law related to EPF. For this reason also this decision is being discussed a lot. Now that the court has given its verdict. Its impact can be seen on lakhs of employees. In fact, the Karnataka High Court has rejected the provision to include foreign workers in the EPF scheme. The High Court has said that this is unconstitutional and arbitrary. The Employees' Provident Fund Organization (EPFO) has said that it is considering further action regarding the Karnataka High Court's decision holding the inclusion of foreign workers in the PF as unconstitutional.

What is the law?

This decision relates to the specific provisions for international workers mentioned in paragraph 83 of the Employees' Provident Fund Scheme, 1952 and paragraph 43A of the Employees' Pension Scheme, 1995. These were considered inconsistent with Article 14 of the Constitution. Paragraph 83 of the Employees' Provident Fund Scheme, 1952 deals with special provisions in respect of international workers. Under this provision, from October 1, 2008, every international employee whose basic salary (basic salary and dearness allowance) is up to Rs 15,000 per month will compulsorily come under the scope of this scheme.

Social security agreement with 21 countries

India currently has social security agreements with 21 countries. These agreements ensure a continuous social security cover for the employees of these countries on a reciprocal basis. EPFO said that when citizens of these countries work in each other's areas, their social security is maintained. Social security agreements between countries are government-to-government agreements made by the Government of India with other countries. The purpose of these agreements is to guarantee uninterrupted social security to employees during international employment.

EPFO's argument

According to EPFO, the agreements must necessarily follow internationally recognized principles. He said that these agreements are very important for India to promote international mobility and take advantage of the demographic dividend. EPFO acts as the operating agency in India for such social security settlements.

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