SpiceJet and LG Electronics India to deposit provident fund and other dues in respect of their international workers, the court rejected the airline’s petition challenging summons issued by EPFO in 2012 that required it to give evidence and produce all the relevant records for determination of PF and related dues payable for international workers employed by it. The court also rejected a similar letter issued to LG Electronics by the EPFO.
While the Delhi HC’s judgement is on similar lines with that of the Bombay High Court, the Karnataka HC has held to the contrary. The case is bound to reach the Supreme Court for its authoritative view now due to divergent views.
Even the two companies are considering the implications and are likely to move the SC, according to legal sources.
“The entire basis of amendment to the scheme is implementation to certain treaties with countries who have similar provision for social security. And under the Constitution of India, this amendment could not be implemented as treaties have not been ratified by Parliament,” said Atul Sharma, counsel for Spicejet. He said this issue also needs consideration by the court.
The companies had asserted that this classification between foreign and Indian employees was discriminatory.
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