Employer's Liability for PF Loan When Employee Skips Completion Certificate Submission?

Employer's Liability for PF Loan Without Completion Certificate

An eligible employee applied for a PF loan for plot purchase through Form 31 and obtained the loan but failed to submit the Annexure III completion certificate. What will be the employer's liability in this scenario?

Thanks/Regards,
Uthiramoorthy H

If the PF authority finds that there is a breach of terms of sanction of a PF loan, the PF commissioner may issue necessary directions to the employer regarding the recovery of the loan from the wages of the employee, etc. Therefore, the employer should await the instructions of the PF authority in this matter.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai