EPFO: What an employee can do if their employer delays PF contributions?

EPFO: E-learning company BYJU's on Tuesday reportedly remitted remaining PF contributions for employees after a long delay. The embattled company was going through Employees' Provident Fund Organisation (EPFO) scrutiny and swung into action under pressure.

Though delaying contributions by employers is not a common problem, it is the right of every employee to get PF contributions from their employers on time.

It is also mandatory for every employer to deposit the EPF contributions into an employee's PF account within 15 days of the previous month's salary payment.

Any delay in depositing PF invites interest charges, penalties, criminal charges, and imprisonment as per the EPF Act.

At the same time, every employee must know about the legal remedies that they can take in case of PF delays.

In this write-up, we will tell you what an employee can do if their employer delays PF contributions.

Interest penalty: The EPFO has the right to impose an interest penalty if an employer delays PF contributions.

On the basis of a complaint from an employee, the EPFO can set up an inquiry by the retirement fund regulatory body and initiate action against the employer.

Police complaint: An employer can file a police complaint against the employer under sections 406 and 409 of the Indian Penal Code (IPC) for criminal breach of trust.

Other than that, employees can also approach the chief vigilance officer appointed by the labour ministry.

EPFO Action: If an employee lodges a complaint to EPFO that their employer has defaulted on PF contributions, the PF organisation under Section 14-B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, has the legal authority to recover damage from the employer.

Request a copy of Form 12: Form 12 has the details of amounts recovered from employees and contributions remitted for EPF, the Employee Pension Scheme, and the Employees Deposit Linked Insurance Scheme.

An employee can ask for it from their employer.

If the employer doesn't give it, employees can file a Right to Information application with the regional EPFO to get Form 12.

For denying them Farm 12, the employees can also file a complaint with the police under IPC sections 406 and 409 by the EPFO for taking necessary action against the employer.

Punishment: Denying an EPF contribution to an employee is a criminal offence. An employer can face severe consequences for it, including imprisonment for up to three years, a fine, or both.

In severe cases, the magnitude of punishment can be decided under Section 409, which carries imprisonment for up to 10 years or life along with a fine.