The Supreme Court on Wednesday said that provisions of the Employees Provident Fund (EPF) Act also apply to private security agencies providing protection to the people.
A bench of Justices Naveen Sinha and Justice Suryakant said this while dismissing the petition of a private security agency. The bench said that the appellant company is involved in specialized and specialist services and provides trained and skilled security guards to its clients on a payment basis.
The bench rejected the company's argument that it only provides watchman's facilities. The Bench stated that the Private Security Agencies (Regulation) 2005 clearly states that the company is the one which is the employer of the security guard and the remuneration is paid by him.
Simply because the client pays the appellant the money under a contract and in return the appellant pays the remuneration to such security guards, the employer of the security guard becomes the client, and neither the security guard becomes the client's employee.
The apex court has said that the provisions of the EPF Act also apply to the private security agency which is engaged in the work of specialized and expert service to the people. The verdict of the apex court has come on the petition of Panther Security Service Private Limited.
The company had challenged the High Court order in which the order of Assistant PF Commissioner, Kanpur was upheld that the provisions of EPF Act apply to this company. The company was asked to submit statutory dues within 15 days.