Section 7A of EPFMA : Section 7A: Determination Of Moneys Due From Employers

Explanation using Example

Consider a scenario where XYZ Pvt. Ltd. is a company that has been operational for a few years. The management is unsure if the Employees Provident Funds and Miscellaneous Provisions Act, 1952, applies to their establishment due to the nature of their business and the number of employees. A dispute arises, and the Regional Provident Fund Commissioner steps in to decide whether the Act applies to XYZ Pvt. Ltd.

The Commissioner initiates an inquiry to determine the applicability of the Act. During this process, the Commissioner has the authority to summon the employer or any other person relevant to the inquiry, require the submission of documents, take evidence on affidavit, and even issue commissions for examining witnesses, similar to powers of a court.

XYZ Pvt. Ltd. is given a reasonable opportunity to present its case. However, suppose the employer fails to attend the inquiry or produce the necessary documents without a valid reason. In that case, the Commissioner may proceed with the available evidence and records to decide on the applicability of the Act and determine any dues from the employer.

If the Commissioner passes an order against XYZ Pvt. Ltd. without their presence (ex parte) because they did not receive the notice of the inquiry, the company has three months to apply for setting aside the order. They must convince the Commissioner that they had a sufficient cause for not attending the inquiry. If successful, the earlier order can be set aside, and a new date for the inquiry will be scheduled.