Circular No. ES/140/2020-21 16th May, 2020
To : Members of the Council
Sub: Relief to establishments and factories covered under EPF & MP Act, 1952 from levy of penal damages for delay in deposit of dues during lockdown to prevent COVID-19
We would like to inform you that The Employers’ Provident Fund Organisation (EPFO), Ministry of Labour & Employment, Govt. of India has issued a Circular dated 15th May, 2020 on the above subject.
Due to prolonged lockdown announced by the Govt. to control the spread of COVID-19 and other disruptions due to pandemic, the establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time.
Considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay.
Circular dated 15.05.2020 has been issued to Field Offices of EPFO containing instructions to the effect that no proceeding shall be initiated for levy of penal damages in such cases which is available under TAB “COVID-19” on home page of EPFO website.
The aforesaid step shall ease the compliance norms for EPF covered establishments and save them from liability on account of penal damages.
Members may kindly make a note of the above.