New Delhi: The Supreme Court on Thursday agreed to hear an appeal by LG Electronics India challenging the constitutional validity of rules mandating expatriates working in Indian companies to become members of the Employees’ Provident Fund Organisation (EPFO).
A bench led by Justice PS Narsimha issued notice to the Centre, the EPFO and others on the LG Electronics’ appeal challenging a Delhi High Court ruling that upheld various amendments to the Employees Provident Funds and Miscellaneous Provisions Act, 1952, and government notifications that required international workers of Indian establishments to contribute to the Employees’ Provident Fund (EPF) irrespective of their incomes.
The court directed the EPFO not to pass any final order against LG under Section 7A of the 1952 Act during the pendency of the case and posted the matter for further hearing on March 20.
Stating that the classification between foreign and Indian employees was discriminatory, LG argued that an Indian employee is required to contribute to the EPF only if their monthly pay is less than ₹15,000 whereas a non-excluded international employee is required to contribute irrespective of their salary.
This denies foreign employees equality before law and equal protection of laws, it argued.
The Delhi High Court in November last year had upheld the constitutional validity of various amendments to the Act and the Centre’s 2008 and 2010 notifications mandating international workers of an Indian firm to contribute to the fund. These international workers will be allowed to withdraw the full amount in EPF only on their retirement from service at any time after reaching 58 years or because of permanent and total incapacity for work due to some infirmity as mandated.
