Case Law Details
Stone Hill Education Foundation Vs Union of India (Karnataka High Court)
In the case of Stone Hill Education Foundation vs Union of India, heard in the Karnataka High Court, the central issue revolved around the constitutional validity of two key provisions: para 83 of the Employees Provident Fund (EPF) Scheme and para 43A of the Employees Pension Scheme (EPS). These provisions, introduced by the Union of India in 2008, targeted international workers, sparking a legal challenge by both employers and employees who deemed them arbitrary and unconstitutional under Article 14 of the Indian Constitution.
Para 83 of the EPF Scheme and para 43A of the EPS were introduced to cover international workers, irrespective of their salary, under the EPF and Pension Schemes. This move drew criticism from petitioners who argued that it unfairly burdened international workers with contributions on their entire global salary, causing irreparable harm as many of them worked for limited periods.
The petitioners contended that these provisions were discriminatory, as they treated international workers differently from other employees based solely on their international status. They argued that such arbitrary treatment violated their right to equality under Article 14 of the Constitution.
The introduction of para 83 and para 43A was challenged on the grounds that it deviated from the original intent of the EPF and MP Act, 1952, which aimed to provide social security and retirement benefits primarily to lower-income employees. The petitioners argued that extending these benefits to high-earning international workers went against the spirit of the legislation.
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