Employees of Private Security Agency are entitiled to benefits under Employees Provident Funds Act

Private Security Agency engaged in expert service of providing security personnel to its client, is required to provide benefit of Employees’ Provident Funds, to their employees.

Employees Provident Fund Act of 2005 defines private security agency as organization engaged in business of providing security services including training to private security guards and providing such guards to any industrial or business undertakings or a company or any other person or property. The provisions of Employees Provident Fund Act makes it manifest that appellant is employer of such security guards and who are its employees and are paid wages by appellant. Merely because client pays money under contract to appellant and in turn appellant pays wages of such security guards from such contractual amount received by it, it does not make client employer of security guard nor do security guards constitute employees of client.

As appellant party was engaged in specialized and expert services of providing trained and efficient security guards to its clients on payment basis, Provisions of Employees Provident Fund Act shall apply to private security agency engaged in expert service of providing personnel to its client.