HOW DEFAULTERS ARE DEALT WITH
(Under Section 85)
Punishment
for failure to pay contributions
| Fails to pay contribution
due: |
a) |
Not
less than one year imprisonment
in case of failure to pay the
employees’ contribution
deducted from employees’
wages and/ or fine of Rs. 10000/-. |
| b) |
Not less than six months imprisonment,
in any other case and/ or fine
of Rs. 5000/-. |
| a.Deducts
employer’s contribution
from the employees’ wages. |
Commits
offence under Section 85(b) to
(g) with imprisonment for a term
which may extend to one year or
with fine which may extend to
Rs. 4,000/- or both. |
| b.Reduces the wages or benefits
admissible to an employee. |
| c.Dismisses discharges, reduces
or otherwise punishes an employee
while under treatment. |
| d.Fails or refuses to submit
returns or makes a false return. |
| e.Obstructs any Inspector or
other official in the discharge
of his duties. |
| f.Commits offence under Section
85(b) to (g) with imprisonment
for a term which may extend to
one year or with fine which may
extend to Rs. 4,000/- or both. |
| Enhanced
punishment in certain cases after
previous conviction by Court: |
a) |
Punishment with
imprisonment for a term which
may extend to 2 years and with
fine of Rs. 5,000/- . |
| b) |
If subsequent offence is for
failure to pay contribution which
under the Act is liable to pay
for every such subsequent offence,
be punishable with imprisonment
for a term which may extend to
5 years but which shall not be
less than 2 years and also liable
to fine of Rs. 25,000/- . |
PROVISION FOR ADJUDICATION
OF DISPUTES (SECTION 75)
The employers and
employees have a forum in the form
of E.I. Court to get redressal for
any of their disputes or grievances
subject to the condition that a deposit
of 50 % dues is made (unless waived
for reasons at the discretion of the
Hon’ble Court.)
ACTION UNDER SECTION
138 OF N. I. ACT
Bouncing
of cheques for reasons of insufficiency
of funds etc.:
Imprisonment upto one year or with
fine which may extend to twice the
amount of cheques or with both.
ACTION UNDER SECTION 405/406/409 OF
I. P. C.
Criminal
Breach of Trust:
For non-payment of employees’
contribution which is deducted from
the wages of the employees but not
paid. Punishment: - Imprisonment which
may extend to 3 years or with fine
or both.
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