HC rejects BSNL's petitions on PF coverage to employees -Governance Now

HC rejects BSNL's petitions on PF coverage to employees

Court: Definition of employee is wide enough to cover the pre-induction training

PTI | June 17, 2011

The Madras High Court on Thursday dismissed the writ petitions by state-run Bharat Sanchar Nigam Ltd challenging an order of the Regional Provident Fund (RPF) Commissioner on PF coverage of BSNL employees.

The court rejected the public sector telco's stand that pre-induction training could not be considered for the purpose of EPF (Employment Provident Fund) Act.

The RPF Commissioner had directed BSNL that Junior Telecom Officers (JTO) or Junior Accounts Officers (JAO) and other similarly placed employees be made members of Employees Provident Fund and other schemes from the date on which they joined or reported for their pre-induction training.

On Sept 1, 2010, the Commissioner held a hearing (Adalat) on regarding PF in January last year, where some JTOs or JAOs had stated that their training period was not counted for coverage under EPF Act.

The Commissioner then gave the direction, following which the BSNL filed the petitions seeking to quash the RPF Commissioner's order.

Passing an order on BSNL's petitions, Justice K Chandru said, "the definition of employee is wide enough to cover the pre-induction training".

The Judge pointed out that during the training for the second and third phases, BSNL covered employees concerned under EPF.

It said there was no reason why they should not be covered even for the first phase. It was too late for the company to contend that pre-induction training could not be considered for the purpose of EPF Act, he said.

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