Confused About PF Rules for Construction Companies? Seeking Clarity on Supreme Court Orders

Dear All,

There was a case in 1987 with Siemens vs Employees, where the Supreme Court of India passed a judgment that PF is not applicable to construction companies. However, I have spoken to many Labor Inspectors, Labor Commissioners, PF Inspectors, and PF Commissioners, and they all say that PF is applicable to construction companies.

I am searching for the notification/superseding orders of the Supreme Court in this regard. Can anyone help me with this?

I have received the orders of the Supreme Court mentioning and superseding the orders that Provident Fund (PF) is applicable to all construction companies.

As far as I know, there is no such exemption available to construction companies with respect to Provident Fund. Till recently, employees at construction sites were excluded from the ESI, but now they have also been brought under ESI coverage.

Regards,
Madhu.T.K

Now, the SUPREME COURT has confirmed the deduction of PF for security services and construction companies based on minimum wages.

Thanks & Regards,
Ramesh E.
Personnel Officer
[Email Removed For Privacy Reasons]

Our company is a construction company. We don't have any PF and ESI currently. We are planning to start PF and ESI. Could you please provide information on the rules and regulations regarding starting PF and ESI?

Thanks and regards,
Srinivas.K

I am in a construction company and searching for a notification regarding PF applicability to construction laborers (contract laborers). Please forward a copy of the case laws, if any, relevant to the construction company.

With regards,

N. Mohan

I am also in the construction company and searching for a notification regarding PF applicability to construction laborers (contract laborers). Because contractor employees are not stable, they change their employees within a month or two and also change/leave the site, etc. So, it is very difficult to comply with the same. Please forward a copy of the case laws, notifications, etc., if any are relevant for the construction company.

Best Regards,
D. N. SHARMA

I completely agree with Mr. D.N. Sharma. Due to the nature of the industry, which is time-bound and has a significant labor turnover, I am doubtful that most laborers working in the construction industry will avail themselves of the benefits, especially under EPS. In fact, in this forum, I have also requested a copy of the notification regarding the applicability of PF to the construction industry. Although, as expressed by many participants, it is mandatory to cover the construction industry, considering the practical difficulties, I believe the industry's representatives should address this matter with the appropriate authority.

With Regards,
N. Mohan