Non-employer may make payments to provident fund

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In Ranbir Singh and Nafe Singh v M/s Ganga Ram Hospital, Delhi High Court recently held that “mere remittance” of provident fund payments by an entity does not create an employer-employee relationship between the entity and its alleged employee. As such, an agreement between Ganga Ram Hospital and a security services agency to which it had outsourced security services “cannot be said to be camouflage, bogus and sham” merely on the ground that the hospital has deposited the provident fund contributions of the agency’s employees.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.