E-Paper
Chandigarh: St John’s school told to disburse ₹74-lakh PF owed to bus drivers, conductors
The Employees Provident Fund Organisation has directed St John’s High School in Chandigarh to comply immediately to avoid further legal complications
St John’s High School, Sector 26, has been directed to disburse ₹74.47 lakh of pending provident fund (PF) and allied dues to bus drivers and conductors engaged by the school between 2007 and 2017.
The order was issued by the assistant PF commissioner after the case went to the Employees Provident Fund Organisation (EPFO) under the Union ministry of labour and employment. The school has been directed to comply immediately to avoid further legal complications.
During an inspection by the area enforcement officer, it was found that PF benefits were not extended to staff of 19 buses.
The school had pleaded that they were run by independent contractors who had engaged less than 20 staff members. Thus, the matter was between parents and transporters, and no payment was made by the school. Their main submission was there is no master-servant relationship between the school and the transporters.
A show-cause notice was issued to the school on June 1, 2017, but the reply was found unsatisfactory and a notice was issued for determination of dues from September 2007 to March 2017. A summons was issued, fixing the date for hearing for October 3, 2017.
While there were multiple hearings, the EPFO was informed that three contractors ran the buses — Surinder Singh (8), Manjit Singh (6) and Marcus Nunes (5).
The contractors in their submissions said they had been plying buses for the school for 20 to 30 years. The bus routes were fixed by themselves. The payments were collected by them directly from parents. They have their own fee receipts and hold their independent bank accounts. The bus contractors also contended that there is no principal employer and contractor relationship between them and the school management.
The enforcement officer in her report in January 2021 stated that there was a clear employee-employer relationship between the school and the drivers. In the final report, it was noted that the establishment denied possession of any documents with respect to drivers and conductors. The three contractors also didn’t provide details of attendance sheet or salary sheet required to calculate the dues. By using a detailed methodology, the figure of ₹74 lakh was calculated.
In its order, the EPFO observed, “Even being well aware of the provisions of EPF Act, the establishment has made all terms and conditions of the agreement in such a way to avoid provident fund liabilities.”
“…liability of payment of PF dues cannot be removed from the establishment: St John’s High School. The employees cannot be made to suffer for lapses and wrongdoings of the parties involved and the rights of the employees have to be kept in mind while passing the orders,” the order said, while directing the school to deposit the pending money.
