What Happens if Employers Deduct Labor Welfare Funds but Don't Deposit Them? Seeking Legal Insights

harpreetwalia

Hi Everyone,

Can anyone tell me what the consequences are if an employer deducts the labor welfare fund from employees but does not deposit it with the department? I would appreciate it if the answer could be supported by any copy of notice or judgment.

Prashant B Ingawale

LWF Office will issue a demand/recovery letter for the said amount. You may even be prosecuted for a criminal offense for the same.

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