My friend is a construction contractor and currently holding a work order dated May 2014 to complete a construction work of two floors from a construction company. For this work order he had submitted the quotation in the month of January 2014.
He had quoated the labour rates without considering provident fund applicability to site workers/ casual labours;this was done in view of the stay order granted by High court on 8th September 1997 against the applicability of the provisions of the amended para 26 (ii) of the Employees Provident Fund Schemes 1952 to the temporary and casual construction site workers as per the writ petition no.2593/1997 filed by Builders association of India.
On 28/08/2014 in case of Builders Association Of India v/s Union Of India, Delhi High Court has given a judgement and has made Provident fund scheme applicable to temporary and casual site workers.
Now ,this construction company is withholding the payments of the contractor stating that he has to register under EPF Act. and then only they will release 20% of his labour payments.But the contractor has not been engaging labours more than 20, and the EPF Act is not applicable to him.
Questions:
1. Whether the construction company's stand is correct to withhold the labour payments of the work order which is dated before this new judgment of High court.?
2. Can the contractor get his 20% withheld money back by stating that the PF is not applicable to this work order now because the labour rates and work order were decided previous to this judgement?
From India, Pune
He had quoated the labour rates without considering provident fund applicability to site workers/ casual labours;this was done in view of the stay order granted by High court on 8th September 1997 against the applicability of the provisions of the amended para 26 (ii) of the Employees Provident Fund Schemes 1952 to the temporary and casual construction site workers as per the writ petition no.2593/1997 filed by Builders association of India.
On 28/08/2014 in case of Builders Association Of India v/s Union Of India, Delhi High Court has given a judgement and has made Provident fund scheme applicable to temporary and casual site workers.
Now ,this construction company is withholding the payments of the contractor stating that he has to register under EPF Act. and then only they will release 20% of his labour payments.But the contractor has not been engaging labours more than 20, and the EPF Act is not applicable to him.
Questions:
1. Whether the construction company's stand is correct to withhold the labour payments of the work order which is dated before this new judgment of High court.?
2. Can the contractor get his 20% withheld money back by stating that the PF is not applicable to this work order now because the labour rates and work order were decided previous to this judgement?
From India, Pune
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From India, Mumbai
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From India, Mumbai
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