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Section 22: Determination of escaped amounts

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Employees' Provident Fund
Competent Labour Forum
Act No. 36 of 2020
Section 21 All 163 Sections of Code on Social Security, 2020 Section 23

Legal Commentary & Landmark Judgments: Section 22

Section 22 of the Code on Social Security, 2020 establishes the universal statutory portability of provident fund, pension, and insurance accumulations upon change of employment, creating an automated digital transfer pipeline anchored to the Universal Account Number (UAN) across India.

  • Mandatory Digital Portability of Employee Accumulations: Section 22 mandates that whenever an employee leaves one covered establishment and joins another, whether exempted or unexempted, their accumulated balance and service record shall be transferred seamlessly to the new account without cash liquidation.
  • Inter-Trust & EPFO Seamless Interchangeability: Governs reciprocal transfers between the statutory EPFO Fund and privately managed exempted trusts under Section 21, establishing strict electronic protocols to transfer credit balances and pension service histories without triggering tax liabilities.
  • Statutory Employer Attestation Deadlines: Fastens an affirmative statutory duty upon both the relieving and hiring employers to electronically attest and complete transfer requests on the unified employer portal within prescribed time limits upon employee submission.
Key Landmark Precedents:
  • Regional Provident Fund Commissioner v. Hooghly Mills Co. Ltd. (2012) 2 SCC 489: The Supreme Court emphasized that seamless transfer of accumulated social security benefits across employers is an essential facet of the worker's fundamental right to social security and livelihood.
  • Associated Cement Companies Ltd. v. RPFC (2001) 10 SCC 597: The Supreme Court confirmed that employers are legally obligated to execute necessary transfer documentations promptly and cannot withhold or delay transfers due to inter-corporate administrative disputes.
  • B.P.L. Ltd. v. R.P.F.C. (2002) 10 SCC 408: Affirmed that portability between exempted trusts and the central fund is a mandatory statutory mechanism that cannot be impeded by private trust rules.
Courtroom Practice & Strategic Litigation Guidance:

Human resource teams must incorporate UAN linking into Day-1 onboarding workflows. If an incoming employee possesses an existing UAN, generate the automated transfer request on the EPFO unified portal immediately. Both previous and current employers should approve the transfer within ten days to ensure continuous pension service accrual under the Employees' Pension Scheme.

Section 21 All 163 Sections of Code on Social Security, 2020 Section 23