Supreme Court today said that if an employer fails to deposit the EPF contribution, then Employees Provident Fund (EPF) on time, it is liable to pay damages to the employee. The Supreme Court was hearing an appeal filed against the Karnataka High Court judgment, which held that the employer is liable to pay damages if he fails to deposit the EPF contribution.
Read also: EPFO added 14.6 lakh subscribers in December 2021
A Supreme Court bench of Justices Ajay Rastogi and Abhay S Oka observed that the Employees’ Provident Fund and Miscellaneous Provisions Act provides for social security to employees working in any establishment having 20 or more employees. Therefore, the court held that as per law, the employer is liable to make mandatory deduction for provident fund and credit the EPF in the employee’s account at the office.
“We are of the view that any default or delay in payment of EPF contribution by the employer under the Act is a mandatory condition for imposition of damages under section 14B of the Act 1952 and is mains re or actus res for breach of civil obligations/liabilities. is not a necessary element for imposition of fine/damages,” the bench said.
with PTI input
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,