Pune, June 5 — A local manpower agency owner has been sentenced to six months’ imprisonment by a Pune court for failing to deposit employee provident fund (EPF) contributions, marking a strong stance against non-compliance with labour laws.
The Judicial Magistrate First Class (JMFC) delivered the verdict after the Employees’ Provident Fund Organisation (EPFO) filed a case against the agency. Investigations revealed that the employer had deducted EPF amounts from wages of over 70 workers but did not submit the funds to the EPFO as required under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Repeated reminders from EPFO officials were ignored, leading to legal action. The court held that the employer’s failure to transfer employees’ money into their provident fund accounts amounted to a serious violation of trust and law.
In addition to the jail term, the court imposed a fine and directed the EPFO to ensure recovery of the outstanding amount. The court also emphasized that employees’ financial safety must not be compromised by neglectful or dishonest employers.
“This decision reflects the importance of enforcing social security laws. We urge all employers to comply with EPF rules to avoid strict action,” said an EPFO official after the hearing.
The case highlights the growing concerns about EPF compliance, especially in the contract staffing sector. Experts note that workers in such setups are often unaware of their entitlements and may not report irregularities unless supported by regulators.
Authorities have reiterated that delays or defaults in PF payments are punishable and will attract legal consequences, including imprisonment. Employers have been urged to maintain transparency and fulfill their legal duties to avoid action under the EPF Act.
The judgment serves as a reminder that failure to protect workers’ savings will not be tolerated, and legal enforcement will continue against those who breach statutory obligations.
