india employment indian-penal-code
Remedy for employee regarding Provident Fund
<p>What are the possible charges an employee can take against an employer regarding Provident Fund - An employee works in a company for a short duration i.e., less than a year. Employee who was able to get the first month's salary slip and noticed a Provident Fund deduction but the employer failed to share Provident Fund details to the employee during and after the period employment. Now, the employee is able to figure out that the employer never created a Provident Fund account for the employee.</p>
<ul>
<li>Does this amount to <strong>breach of trust</strong> under IPC and lead to prosecution?</li>
<li>Can the employer create an employee Provident Fund account and pay the Provident Fund amount along with a penalty after a PF department inspection?</li>
<li>On the other hand, if the employer is allowed to make the payment along with a penalty to the PF department, then can the employer be prosecuted for criminal breach of trust as well?</li>
</ul>

<p><strong>Does this amount to breach of trust under IPC and lead to prosecution?</strong></p>
<p><strong>PROBABLY</strong> with the caveat that the full facts need to be examined by the court to be sure.</p>
<p>An employer's failure to properly account for Provident Fund payments in accordance with the <a href="https://www.indiacode.nic.in/handle/123456789/2152?sam_handle=123456789/1362" rel="nofollow noreferrer">Employees Provident Funds and Miscellaneous Provisions Act 1952</a> is, on the face of it, the offfence under <a href="https://www.indiacode.nic.in/show-data?actid=AC_CEN_5_23_00037_186045_1523266765688&amp;sectionId=46189&amp;sectionno=406&amp;orderno=463" rel="nofollow noreferrer">s.406</a> of the Indian Penal Code:</p>
<blockquote>
<p>Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.</p>
</blockquote>
<p> 
Depending on the employer's capacity, it may also be an offence under <a href="https://www.indiacode.nic.in/show-data?actid=AC_CEN_5_23_00037_186045_1523266765688&amp;orderno=466" rel="nofollow noreferrer">s.409</a>:</p>
<blockquote>
<p>Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.</p>
</blockquote>
<p>(The OP's final two bullet points would be a matter for the PF Commissioner and courts to decide upon.)</p>
