Page 261 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes
Figure 10.1 Structure of the EPFO in India
Central Board of
Trustees
Executive Committee
CBT, EPF
Corporate Headquarters, Employees
Provident Fund Organisation

Regional Offices

Sub
Regional Offices

District Offices Service Centres

Offences and Penalties

The penalties in respect of the various offences in regard to provident fund, family pension fund,
etc. are as follows:

Table 10.1: Offences and Penalties

Offence Penalty
1. Making any false statement or misrepresentation Imprisonment up to one year of fine of
to avoid any payment towards provident fund, 5000/- or both.
family pension fund or deposit-linked insurance
fund.
2. Default in payment of administrative charges Imprisonment up to 3 years and a fine of
towards Provident Fund (Para 38) or payment of 5000/- (Minimum imprisonment for 6 months).
inspection charges [Sec. 17(3)(a)]
3. Default in payment of employees’ contribution
Imprisonment up to 3 years and a fine of
[Sec.6]. 10,000 (Minimum imprisonment for 1 year)
4. Default in payment of contribution or Imprisonment up to 1 year or a fine up to
administrative charges or inspection charges
5000/-, or both. (Minimum imprisonment for 6
towards the Deposit-linked Insurance Fund. months).
5. Contravention of or default in complying with, Imprisonment up to 1 year or fine up to 4000 or
any of the provisions. both.
6. Contravention of or default in complying with, Imprisonment up to 6 months (minimum 1 month)
and fine up to 5000.
any of the conditions, subject to which exemption
was granted u/s 17.
7. Any subsequent offence committed after previous Imprisonment up to 5 years (minimum 2 years) and
fine up to 25,000.
conviction (sec. 14AA)

Damages and Penalties

When an employer fails to remit the dues under the Scheme within 15 (20 days with 5 days grace
period) days of the close of each month, the employer will be liable to pay penal damages as
may be determined by the Regional Commissioner (RC) not exceeding 37% of the arrears.
Any amount outstanding from the employer can be recovered by the Regional Commissioner
as an arrear of land revenue. The powers for revenue recovery and issue of recovery certificates
are vested with the Regional Commissioner (with effect from 1/7/90).

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