G4S to deposit ₹300cr over pension allegation

The Employee’s Provident Fund Organization (EPFO) has ordered private security agency G4S India to deposit ₹300 crore after it concluded that it deprived its workers of pension benefits worth that amount.

In its order last week, the pension fund manager said, “The establishment (G4S Secure Solutions (India) Private Ltd) has decidedly concealed the actual benefits payable by them to the workers with regard to their PF vis-à-vis the amount received by them from clients.” It maintains it follows the law.

“G4S has always complied with the Employees’ Provident Fund Organisation’s rules and regulations. With reference to the recent order passed by the Tribunal, we are reviewing the order to decide on our future course of action,” said a G4S spokesperson, when contacted by HT regarding the allegations made by the EPFO.

G4S India is the subsidiary of G4S Global, a company listed in London and Copenhagen. The Indian arm of the company employs over 130,000 people. In one order, the EPFO has asked the G4S to deposit ₹180 crore to the pension body in 15 days.

In another order, the appellate tribunal of the EPF has quashed the company’s earlier petition and upheld that G4S has to deposit ₹113 crore as PF dues.

The latest orders assume significance as private security agencies employ large scale manpower. Experts believe the company still has the door open to appeal against the orders in the high court.

Non-payment of PF dues can land the people concerned in the G4S in jail and the EPFO authority can take other measures to recover the dues from the company. A section of the employees had complained that the security company has deliberately split the wages of the workers to show lower salaries and thereby deposited lower PF even as they took full money from the clients.