6 crore employees will benefit from SC’s decision, the company will compensate for the loss due to delay in EPF contribution payment

If you are employed in the organized sector and have an Employee Provident Fund ie EPF Account, then there is good news for you. Actually, the Supreme Court has given a big order regarding EPF. The top court has ruled that the employer will have to compensate the loss due to delay in EPF contribution.

More than 6 crore people affected
The Supreme Court has also upheld the decision of the Karnataka High Court. This decision of the court is going to affect more than 6 crore subscribers of retirement fund body Employee Provident Fund Organization (EPFO). After this decision, the employees coming under this purview will now be able to claim compensation.

According to news agency PTI, the bench of Justice Ajay Rastogi and Justice Abhay S Oka said that the Employees’ Provident Fund and Miscellaneous Provisions Act provides social security to employees working in an establishment where 20 or more people work.

The Supreme Court said that under this law, it is the responsibility of the company to mandatorily deduct the PF of the employees and deposit its share or contribution in the EPF office on its behalf.

Compensation will have to be given under section 14B
The Karnataka High Court had ruled that if the employer delays the contribution in EPF, then he will also be liable to compensate for it. The court said that we are of the view that for the delay in depositing the EPF contribution, the employer will have to pay compensation under Section 14B of the Act.