New Delhi: Employers are under an obligation to pay damages for delays in the payment of an employee’s Employee Benefit Fund (EPF) contribution, the Supreme Court said on Thursday.
The sitting of Judges Ajay Rastogi and Abhay S Oka stated that the Workers’ Compensation & Variety Provisions Act is a law for the provision of social security to workers working in any establishment and employing 20 or more persons.
The Supreme Court held that the Act obliges the employer to make a necessary deduction for the provider’s expenses and to put it into the account of the employees in the EPF office.
We are of the opinion that any deviation or delay in the payment of EPF contributions by the employer under the Act is unjustified for the filing of taxable damages under Section 14B of the 1952 Act and mens rea or actus reus is not an essential part of the transfer. penalties / damages for breach of public contracts / debts, the seat said.
The Supreme Court is hearing an appeal filed by the Karnataka High Court which ruled that the employer is liable to pay damages if it fails to comply with the EPF.