Introduction:

In a landmark ruling, the Karnataka High Court declared certain provisions of the Employees’ Provident Fund Scheme, 1952, and the Employees’ Pension Scheme, 1995, unconstitutional. The court’s decision in the case of Stone Hill Education Foundation and Union of India & Others addressed the discriminatory treatment of international workers under the schemes.

Arguments:

The petitioners argued that the inclusion of international workers under the scheme, irrespective of their salary, while Indian workers faced a salary threshold, was arbitrary and violative of Article 14 of the Constitution. The Union of India countered, citing bilateral Social Security Agreements (SSAs) with various countries as justification for the special provisions for international workers.

Court’s Judgement:

Justice K S Hemalekha ruled in favor of the petitioners, emphasizing the inherent discrimination in the scheme’s treatment of Indian and international workers. The court held that the unlimited contribution requirement for international workers was arbitrary and lacked justification under Article 14.