Employer to pay the damages for delay in payment of the contribution of Employees’ Provident Fund (EPF)

On Wednesday, Supreme Court told that An employer is under a responsibility to reimburse the damages for delay in payment of the donation of Employees’ Provident Fund (EPF) of a worker.

A judiciary of Justices Ajay Rastogi and Abhay S Oka told Employees Provident Fund and Miscellaneous Provisions Act is law for giving social security to the workers working in any organization and employing 20 or additional individuals.

The top judiciary told that the Act casts a responsibility upon the employer to give rise to the compulsory reduction for provident fund and to deposit in the employees’ account in the EPF office.

The judiciary told that they are of the considered impression that any default or uncertainty in the payment of EPF contribution by the employer under the Act is a sine qua non for the imposition of tax of harms under Section 14B of the Act 1952 and mens rea or actus reus is not a crucial element for assessing liability or damages for violation of civil responsibilities or liabilities.