Decided On: 02.06.2011
Court: Employees’ Provident Fund Appellate Tribunal, New Delhi
The EPF Authority (“Authority“) initiated a proceeding under Section 7A of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (“Act“) and alleged that the Appellant was not paying the minimum wages to its employees required under the Minimum Wages Act. The EPF Authority treated the “minimum wages” as the basic wage and assessed the dues.
Appellant: Authority has no power to hold that minimum wages amounts to basic wage nor has the Authority power to determine the amount of wages to be paid to the employees. The Appellant placed its reliance on APFC v. G4S Security Services India Ltd. (MANU/PH/0238/2011) to argue that the impugned order of Authority is illegal.
Respondent: Appellant was not paying the minimum wages so that assessment has been made correctly.
Section 7A makes it clear that the Authority has the power to resolve the dispute regarding the payment of dues but it has NO power to hold whether minimum wages amount to basic wage or not or whether the payment was made as per the Minimum Wages Act or not.
The order of the Authority was thus set aside.
Author: Vivek Verma
Image from here.