Legal Question in Employment Law in India

Can the Principal pay the outstanding PF Amount without penalty on the event of

Sir,

Can the Principal approach the Provident Fund Authority to pay out the PF amount without fine on the event of default by the Contractor?

FACT : Principal has appointed a Contractor through an Agreement to supply workmen for loading and unloading of goods in its godown in the year 1994. From 1994 to 2001 The contractor has not made the payment of Provident fund amount to the PF Authority till today towards the PF deductions of the workmen employed by the Contractor. Ultimately the Principal is liable for the default of the Contractor as per the Employees Provident Fund and Miscellaneous Act.

My query is now can the Principal voluntarily approach the PF Authority to be good and make the payment of the said amount after 10 years. If so shall we get the liberty from paying fine and will it be accepted , then under which provision ? Shall not the Principal be caught and penalised by the authority for the voluntary act, since the PF Authority has not yet noticed the matter till today?

Important _ From the year 2001 the Princiapl is deducting the PF amount of the workmen and deposting the same regualrly.

Regards


Asked on 2/27/03, 7:21 am

1 Answer from Attorneys
Umesh Bhagwat Bhagwat&Co.

Re: Can the Principal pay the outstanding PF Amount without penalty on the event

In my opnion the principal can take the defence that he was unaware thatthe PF was not being paid.However it is likely that he may have to bribe the PF inspector.

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Answered on 2/28/03, 6:12 am


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