In Brief
A garments manufacturer engaged women workers at home to stitch garments, supplying materials and paying piece-rates, with the right to reject defective work. The manufacturer claimed the workers were independent contractors outside the Employees' Provident Fund (EPF) Act. The Supreme Court held that such workers are employees under Section 2(f) of the EPF Act. The right to reject defective work constitutes sufficient supervisory control to establish an employer-employee relationship. Piece-rate payment does not negate employment status. The Act, being social welfare legislation, must be interpreted broadly in workers' favour. The manufacturer was directed to pay outstanding provident fund contributions.
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