Can EPFO Recover 14B & 7Q Dues from Principal Employers in Current or Future Contracts?

Dear All,

Please let me know whether EPFO has provisions to recover 14B & 7Q dues from the Principal Employers of the present contract or future contracts. If so, please quote the relevant provisions. Likewise, Principal Employers are required to honor the orders on 14B & 7Q in respect of contractors working under them in the absence of tender conditions. Also, enlighten whether PEs could enforce these conditions as part of their tender conditions on present and future contracts.

Thank you in advance to all.

Interest and Damages Under the EPF & MP Act

Sections 7Q and 14B of the EPF & MP Act refer to interest and damages, respectively, for delayed payments. The primary responsibility of paying the PF dues of the contractors' workers lies with the principal employer. However, there are court verdicts which state that if the contractor is registered under the EPF & MP Act, the EPFO should treat them as an "independent employer." As such, the EPFO should recover the amounts due from the contractor by initiating inquiries against them and should not proceed against the principal employer.