OUTSOURCING UNITS CANNOT BE CLUBBED FOR EPF

The Delhi High Court has ruled that outsourcing units cannot be clubbed with each other or the company outsourcing work to them, for the purpose of taking the benefit of Employees Provident Fund (EPF). These ancillary units are independent business entities despite the fact that they are dependent on an automobile company or engineering firm. These units cannot be clubbed with each other or with main company for purpose of EPF Act on the ground of interdependence.