TeamLease Services Files Appeal Against EPFO Order Over NEEM Trainee PF Applicability
Teamlease Services Limited has filed an appeal with the Hon'ble High Court of Gujarat challenging an order received from the Employees' Provident Fund Organisation (EPFO). The dispute centers on the applicability of the Employees' Provident Fund (EPF) Scheme, 1952, to NEEM trainees deployed by TeamLease Skills University (TLSU).The company confirmed that the appeal relates to an order passed under Para 26B of the EPF Scheme, 1952, which was received on March 11, 2026.
The core dispute involves whether NEEM trainees should be treated as "employees" under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. TLSU, a university operating through a Public-Private Partnership with the Government of Gujarat, received the office order from the Regional Provident Fund Commissioner, Vadodara.
Details of the matter under review include:
| Particulars | Details |
|---|---|
| Authority Involved | Employees' Provident Fund Organisation |
| Entity Concerned | M/s. TeamLease Skills University (TLSU) |
| Nature of Order | Order under Para 26B of the EPF Scheme, 1952 |
| Period Under Dispute | July 2014 to June 2022 |
| Date of Order Receipt | March 11, 2026 |
TLSU represents that the NEEM Scheme expressly excluded NEEM trainees from being classified as "employees" for the purposes of statutory social security legislations, including Provident Fund and Employee State Insurance.
The company has taken legal action to challenge the office order before the High Court of Gujarat, seeking an appropriate stay on its operation. TLSU noted that the case rests on identical facts to a similar matter, for which it had previously obtained a favourable interim stay from the Hon'ble High Court of Madras.
Regarding the financial impact, the company stated that since the present proceedings under Para 26B are limited only to determining applicability and do not determine or quantify any dues, there is no immediate or ascertainable financial impact as on date. The matter has been disclosed as a contingent liability in the consolidated financial statements for FY25.
TeamLease Services Limited reiterated its commitment to full compliance with all applicable laws and regulatory requirements.
TEAMLEASE Stock Price Movement
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