by Determination of Money due from employers under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, involves assessing the amounts owed by an employer to the Employees’ Provident Fund (EPF) Scheme, the Employees’ Pension Scheme (EPS), or the Employees’ Deposit-Linked Insurance Scheme (EDLI), as applicable. This process is crucial for ensuring compliance with the Act and safeguarding the interests of employees by securing their entitlements to provident fund contributions, pension benefits, and insurance coverage. The EPFO (Employees’ Provident Fund Organisation) plays a key role in this regard.
Steps and Provisions for Determination:
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Initiation of Inquiry:
The process typically begins when a discrepancy or non-compliance is identified, either through routine inspections, audits, or through complaints filed by employees or trade unions. The Provident Fund Commissioner or any officer authorized by him, under the Act, may initiate an inquiry to determine the amounts due.
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Notice to Employer:
The employer is issued a notice by the concerned authority, requiring them to appear in person or through a representative and produce documents and evidence relevant to the determination of dues. This notice is a critical step, ensuring procedural fairness and allowing the employer to present their case.
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Examination of Records and Evidence:
The authority examines the records, documents, and evidence presented by the employer, alongside any information or testimonies from employees or other relevant parties. This examination helps in assessing the accuracy of contributions made, the number of employees covered, wages paid, and any other factors relevant to determining the provident fund and other dues.
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Calculation of Dues:
Based on the findings, the authority calculates the total amount due from the employer. This includes contributions not made, interest on late payments as prescribed under the Act, and any penalties applicable for non-compliance.
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Issuance of Determination Order:
After calculating the dues, the authority issues a determination order to the employer, specifying the amount owed to the EPF scheme, the EPS, or the EDLI, as applicable. This order includes the breakdown of contributions, interest, and penalties.
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Recovery of Dues:
If the employer fails to make the payment within the prescribed time frame, the Act provides for the recovery of dues as arrears of land revenue or through other prescribed methods, ensuring that the owed amounts are collected and credited to the respective scheme accounts for the benefit of employees.
- Appeals:
Employers have the right to appeal against the determination order before an appellate authority as prescribed under the Act, within a stipulated period from the date of the order.
