Page - Practice Areas
Section 7A empowers the assessing officer — the Central Provident Fund Commissioner, Additional CPFC, Regional PFC, Deputy PFC or Assistant PFC — to decide disputes on applicability of the Act and to determine amounts due from an employer. The Officer exercises powers of a civil court, including summoning witnesses, requiring production of documents, and receiving evidence on affidavit.
We represent employers at every stage of the 7A inquiry:
1. Responding to the initial notice and framing of preliminary objections on applicability
2. Cross-examination of the Enforcement Officer and departmental witnesses
3. Filing of written submissions and reply to the show-cause notice
4. Seeking review under Section 7B on discovery of new evidence or error apparent on the face of the record (45-day limitation)
Section 14B damages are levied where an employer defaults in payment of contributions, and are assessed in addition to the principal dues determined under Section 7A. We advise on, and contest, the quantum of damages levied — including representations on delay attributable to circumstances beyond the employer's control — and pursue appellate remedies where damages are levied without adequate opportunity of hearing.
Interest under Section 7Q runs on delayed contributions and is recovered together with the principal amount and Section 14B damages. We review interest computations for arithmetical accuracy and period of applicability, and raise objections at the recovery stage where interest has been incorrectly compounded or applied to disputed principal sums.
Once dues are determined and remain unpaid, EPFO recovers the amount as arrears of land revenue. The Recovery Officer may attach and sell movable or immovable property, attach bank accounts, appoint a receiver, recover from third parties owing money to the employer, and — subject to statutory safeguards — seek arrest and detention of the employer.
Our recovery-defence work includes:
1. Applications for stay of recovery pending appeal before the CGIT
2. Representations for provisional attachment to be lifted or modified
3. Negotiating instalment payment where the underlying demand is not disputed
4. Challenging recovery where the demand itself is under review or appeal
An employer aggrieved by an order under Section 7A, 7B, 7C or 14B may appeal to the Tribunal within 60 days of the order. We draft and argue such appeals, including applications for interim stay of the demand pending disposal, and appear at hearings before the CGIT-cum-Labour Courts functioning as EPF Appellate Tribunals across India.
Where an employer fails to submit returns, or records are incomplete, the Corporation may determine the contribution payable under Section 45A on the basis of available information. We represent employers at the inspection and inquiry stage to prevent best-judgment assessments, and where an assessment has already been made, we review the basis of computation and contest it on the merits.
An employer may appeal a Section 45A order to the appellate authority within 60 days. We prepare and argue 45AA appeals, including on grounds that returns and records were in fact available, that the assessment was excessive, or that natural justice was not followed.
Unpaid ESI contributions are recoverable as arrears of land revenue, with the Recovery Officer empowered to attach and sell property, attach bank accounts, appoint a receiver, and recover from third parties. We contest recovery action, seek stays, and negotiate structured repayment where appropriate.
The Employees' Insurance Court has jurisdiction over disputes on liability to pay contributions, applicability of the Act, benefit claims, employer-employee disputes, and challenges to Section 45A orders. Applications must ordinarily be filed within three years of the cause of action. We litigate before the EIC and, on a substantial question of law, carry matters in appeal to the High Court within the 60-day limitation period.
Most 7A inquiries and 45A determinations of Contributions originate in an inspection. We assist establishments before, during and after inspection by the Enforcement Officer (EPF) or Social Security Officer (ESI):
1. Pre-inspection compliance review of wage registers, ECR filings, contribution records and coverage status
2. Representation of the establishment during inspection, including on the scope of documents the Officer may call for
3. Drafting responses to inspection reports and notices issued on the strength of an inspection
4. Advising on coverage disputes — whether an establishment, unit or category of employee is covered under either Act
5. Preventive compliance audits to reduce exposure to 7A, 14B, 7Q and 45A proceedings
The Code on Social Security, 2020 consolidates nine earlier social security enactments — including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Employees' State Insurance Act, 1948, the Payment of Gratuity Act, the Maternity Benefit Act, the Employees' Compensation Act, and legislation covering building and construction workers, unorganised workers, and gig and platform workers — into a single statute. The Code, along with the other three Labour Codes, was brought into force on 21 November 2025.
Since then, the framework has continued to be operationalized in stages:
1. The Code on Social Security (Central) Rules, 2025 were framed to give effect to the Code's provisions on EPF, ESI, gratuity, maternity benefit,
employee's compensation, and gig/platform workers.
2. These were amended by the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E)), notified on 8th May 2026, which tightened ESI
onboarding timelines and clarified data-accountability requirements, while leaving EPF contribution rates and coverage thresholds unchanged.
3. The Employees' Provident Fund Scheme, 2026, the Employees' Pension Scheme, 2026 and the Employees' Deposit Linked Insurance Scheme,
2026 were separately notified with effect from 29 June 2026, replacing the 1952, 1995 and 1976 schemes respectively, while retaining the existing
12% contribution structure and the ₹15,000 statutory wage ceiling.
4. State Governments are separately notifying their own rules under the Code for establishments falling within State jurisdiction; the Central Rules
apply directly to the central sphere (banking, insurance, telecom, ports, mines, railways, CPSUs and similar Central Government establishments).
Transitional position on dues and proceedings:
Our advice to clients is that dues and defaults arising before 21 November 2025 continue to be governed by the legacy EPF Act, 1952 and ESI Act, 1948 and the case law built up under those Acts — including the 7A/7B/7I and 45A/45AA framework described above. Dues and disputes arising on or after that date fall to be assessed under the Code's own machinery. Because rules continue to be notified and refined even as this page is published, we review the applicable framework afresh for every new matter rather than assuming continuity from an earlier engagement.
Authorised Officer — Determination of Dues (Section 125)
Under the Code, an Authorised Officer (not below the rank of a Group 'A' officer) decides disputes on applicability of the EPF or ESI chapters and determines amounts payable by an employer, exercising civil-court powers similar to those under the erstwhile Section 7A — summoning witnesses, requiring production of documents, and receiving evidence on affidavit. Proceedings must generally be initiated within five years of the dispute arising or the dues becoming payable, and inquiries are to be conducted day-to-day and completed within two years, extendable by one further year with recorded reasons and approval.
Ex parte orders may be passed where a party fails to appear without valid cause, and may be set aside on application within three months of communication of the order, on notice to the opposite party.
Appeal to the Appellate Authority (Section 126)
An employer aggrieved by an Authorised Officer's order under Section 125 may appeal to the Appellate Authority — an officer not below the rank of Joint Director of the Corporation — within 60 days of the order. The appeal is conditional on deposit of 25% of the contribution determined (or self-assessed by the employer, whichever is higher); the deposit is refundable with interest if the appeal succeeds. Appeals are to be disposed of within six months of filing.
Recovery of Dues (Sections 129–132)
Where dues remain in arrears after determination, the Authorised Officer issues a Recovery Certificate to the Recovery Officer, who may attach and sell movable or immovable property of the establishment, or attach the employer's personal property where establishment assets are insufficient, appoint a receiver, and — subject to safeguards — arrest and detain the employer. Once a Recovery Certificate is issued, the correctness of the underlying demand cannot be reagitated before the Recovery Officer, whose function is limited to execution; the Authorised Officer may nonetheless withdraw, amend or stay the certificate where the underlying demand is modified in appeal. Additional recovery mechanisms include garnishee notices to banks and third parties holding money for the employer, and application of the Income-tax Act (Certificate Proceedings) Rules, 1962 (Second and Third Schedules) with necessary modifications to the amount mention in section 129
How we assist:
1. Advising on whether a given dispute or default falls to be assessed under the legacy Acts or under the Code, given the transitional position
2. Representation in Section 125 inquiries and Section 126 appeals, including on the 25% pre-deposit requirement
3. Defending against Recovery Certificate action under Sections 129–132
4. Ongoing monitoring of Central and State Rules notified under the Code as they affect existing and new establishments
