if an employer gets waver from PF board and still he collects PF frm employees , what will be his liabiliy. What is his safeguards.
pratik (self working) 18 November 2011
good question yaar
Sudhir Kumar, Advocate (Advocate) 18 November 2011
First of all there is nothing like waiver from PF Board in favour of any employee. There can be exmption on the following conditions:-
Now coming to your query. If an employer has not deposited dues withther with EPFO or if exampted with ites trust, he is liable for prosecution uner PF act which is non-cognizable and balaible offence and prosecution can be launched only by EPFO.
However, if he deducts the employee share and does not deposit with EPFO. The offence is non-bailable and cognisable under setion 406 and 409 of IPC. Local thana (or area magistrate if thana does not take action) can proceed if the employee can prove embezzelemnt of employee share of even in case of one employee for one month.