Criminal LawSection 316, Bharatiya Nyaya Sanhita, 2023

BNS Section 316

Can an employer who fails to pay employee contributions be charged with criminal breach of trust?

Short answer

Yes, if an employer fails to pay deducted employee contributions to the required fund, they can be charged with criminal breach of trust.

In detail

Section 316 of the Bharatiya Nyaya Sanhita, 2023 says that anyone who is entrusted with property and dishonestly misappropriates it, or uses it in a way that violates a law or contract, commits a criminal breach of trust. The section specifically treats an employer who deducts employee contributions for a provident or pension fund as being entrusted with that money. If the employer does not pay those contributions to the fund as required by law, it is treated as dishonest use of the money, which is a breach. The law also covers other situations such as a warehouse‑keeper, carrier, or executor who misuses property. The penalty for any criminal breach of trust can be up to five years’ imprisonment, a fine, or both.

Reviewed by LegalX Editorial · 3 September 2026View source

Related questions

People also ask

  • What is the difference between civil and criminal breach of trust?
  • Can a warehouse keeper be charged with criminal breach of trust?
  • What are the penalties for criminal breach of trust?
Ask a lawyer these questions

Not legal advice. This is general legal information, not legal advice. Laws change and every case turns on its own facts — speak to a lawyer about your situation.

Chat with us