Offences and Penalties in Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, outlines specific offences and prescribes penalties to ensure compliance with its provisions. These measures are crucial for enforcing the Act’s requirements, safeguarding employees’ rights, and ensuring that employers fulfill their obligations towards employees’ Provident Fund (PF), Pension, and Insurance contributions. The Act lays down penalties for various offences, including the failure to pay contributions, falsification of records, and non-compliance with the provisions or orders under the Act.

Key Offences and Penalties:

• Default in Payment of Contributions (Section 14):

Employers who fail to pay any contribution to the Fund or make any payment due under the Act within the prescribed period may face imprisonment for a term which may extend to one year, or with a fine of five thousand rupees, or with both.

• Avoidance of Payments (Section 14B):

For avoiding any payment of employees’ contribution deducted from the employees’ wages, or both the employer’s and employees’ contributions, the employer can face imprisonment not less than six months and extendable up to three years.

• False Statements and Representations (Section 14A):

Providing false statements or representations to avoid any payment or to enable any other person to avoid such payment can lead to imprisonment for a term which may extend to one year, or with a fine of five thousand rupees, or with both.

• Non–Compliance with Scheme Provisions (Section 14C):

For any contravention of or failure to comply with any provision of the scheme, an employer can be punished with imprisonment for a term which may extend to one year but which shall not be less than six months in the case of any failure to pay any contribution which under the scheme the employer is liable to pay, or with a fine of ten thousand rupees, or with both.

• Obstruction (Section 14D):

Any person who obstructs an inspector or other official in the discharge of his duties under the Act or who refuses or wilfully neglects to afford the inspector any reasonable facility for making any inspection, examination, or inquiry authorized by or under this Act in relation to an establishment to which any Scheme applies, shall be punishable with imprisonment for a term which may extend to one year, or with a fine of four thousand rupees, or with both.

• Repeat Offences (Section 14(2A)):

If any person convicted of an offence under this Act commits the same offence again, they are liable to twice the punishment, which might have been imposed on a first conviction.

• Other Offences (Section 14A and 14C):

The Act also covers other offences like falsification of records, retaining PF contributions, or not maintaining required documents with specific penalties.

Act empowers the Central Provident Fund Commissioner or any officer authorized by him to levy damages on employers for default in the payment of any contribution to the Fund or any charge payable under any other provision of the Act or of any scheme or under any of the conditions specified under the Act.