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EPF Litigation

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is one of India's oldest and most enforced labour laws. EPF disputes arise frequently especially around the scope of "basic wages" for contribution purposes, coverage of contract and casual workers, applicability to establishments below the threshold, and interest and damage demands under Sections 7Q and 14B of the Act.

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Contentious areas

One of the most contentious areas in recent years has been the Supreme Court's ruling on the inclusion of allowances in basic wages for PF computation, a judgment that has significant financial implications for employers who structured their compensation in good faith under a different understanding of the law. Navigating the retrospective impact of such decisions requires careful litigation strategy.

Determination of money due

EPF enforcement proceedings under Section 7A (determination of money due) can result in large recovery orders, and these must be challenged before the EPF Appellate Tribunal and, subsequently, the High Court. We assist employers at every stage from responding to inspection reports and 7A proceedings to filing appeals and seeking stays on recovery.

The 'basic wages' question under EPF has caught many employers off guard. If you're unsure of your exposure, getting clarity now is far better than waiting for a demand.

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