The employer will have to compensate the loss for delay in contribution to the Employees’ Provident Fund (EPF). The Supreme Court has given this arrangement on Wednesday. According to the news of PTI, a bench of Justice Ajay Rastogi and Justice Abhay S Oka said that the Employees’ Provident Fund and Miscellaneous Provisions Act provides for social security to employees working in an establishment where 20 or more people work.
What is the matter
According to the news, the Supreme Court said that under this law, it is the responsibility of the employer to deduct the provident fund (PF) as necessary and deposit it in the employee’s account in the EPF office. The Supreme Court (SC) has given this arrangement on the appeal filed against the decision of the Karnataka High Court.
Compensation has to be given under section 14B
The Karnataka High Court had ruled that if the employer delays the EPF contribution, then it will be his responsibility to compensate it. The court said that we are of the view that for the delay in depositing EPF contribution, the employer will have to pay compensation under Section 14B of the Act.