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Temporary employees covered under Employees’ Provident Fund Act

Many times employers face the dilemma whether a temporary employee should be considered for assessing eligibility under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (the Act).

As per the provisions of the Act, it applies to an establishment employing 20 or more workmen at any point of time during previous year. But the question is whether, an establishment which in usual course does not employ 20 or more workers, but only on some occasions temporarily employs extra staff is to be covered under the Act or not.

Madras High Court in its recent judgement in the case of M/s New Star English School, Nagapattinam has clarified this situation1. Here the Hon’ble court emphatically ruled that since the Act covers casual employees, temporary employees should be considered for assessing eligibility under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (the Act).

Also Check: Other Legal Aspects

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