VidhiSangh

Supreme Court of India · 24/07/2019

THE OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND OFFICE & ANR. versus M/S GODAVARI GARMENTS LIMITED

[2019] 9 S.C.R. 1101 · 2019 INSC 805

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

Women stitching garments at home from company-supplied materials, to its specifications and subject to rejection of defective products, were employees for provident-fund purposes. Payment per garment, ownership of sewing machines and off-site work did not exclude them. The Court restored the provident-fund assessment and required payment within one month, distinguishing the differently worded employee definition in the Employees’ State Insurance Act.

Issues

  1. Whether home-based garment workers paid on a piece-rate basis were employees covered by the provident-fund legislation.

Provisions considered

Held

Result

Appeal allowed; High Court order set aside and provident-fund assessment of Rs.15,97,087 restored. Company directed to deposit the assessed dues for the women workers within one month; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2019] 9 S.C.R. 1101.