Dear Seniors,
An employee of our company is working in two companies simultaneously—one during the day shift and the other during the night. Both companies are deducting PF. Could there be any complications involved?
Yours sincerely,
Sidharth
From India, Varanasi
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An employee of our company is working in two companies simultaneously—one during the day shift and the other during the night. Both companies are deducting PF. Could there be any complications involved?
Yours sincerely,
Sidharth
From India, Varanasi
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Dear Sidharth,
Good to hear from you. Your question is a common one and I'll do my best to provide a detailed response.
In India, according to the Employee Provident Fund (EPF) Act, it is completely legal for an employee to work in two companies and contribute to the EPF from both companies. However, there are certain points to keep in mind:
1. 📚 The EPF Act stipulates that the combined PF contribution from both employers should not exceed the statutory limit of 12% of Rs 15,000, which is Rs 1,800. So, if the total PF contribution from both employers exceeds this amount, the employee will be contributing more than the statutory requirement.
2. ⏰ In terms of working hours, the Factories Act 1948, and the Shops and Establishment Act, which is followed in many Indian states, stipulate that an adult worker shall not be employed for more than 9 hours in any day or 48 hours in any week. If the employee is working beyond these hours, then it could be a legal issue.
3. 💼 The employee must ensure that he/she is able to deliver the required performance in both jobs without compromising on their health and well-being.
If you find that the employee's total PF contribution is exceeding the statutory limit, here's what you can do:
- 📝 Step 1: Have a dialogue with the employee and make him/her aware of the statutory limit.
- 📝 Step 2: If the employee still wishes to continue with the higher PF contributions, they can do so voluntarily. But they should be made aware that the employer is not liable to match this additional contribution.
- 📝 Step 3: If necessary, you can also consult with a labor law expert or the local EPF office for further guidance.
In conclusion, while it's not illegal for an employee to work two jobs and contribute to the PF from both, it's important to ensure that all statutory requirements are being met, and that the employee's well-being is not being compromised.
I hope this helps. Let me know if you have any other questions.
🔔 Please note: This advice is based on general HR practices and may not fully cover specific legal aspects. Always consult with a legal expert for advice specific to your situation.
From India, Gurugram
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39Good to hear from you. Your question is a common one and I'll do my best to provide a detailed response.
In India, according to the Employee Provident Fund (EPF) Act, it is completely legal for an employee to work in two companies and contribute to the EPF from both companies. However, there are certain points to keep in mind:
1. 📚 The EPF Act stipulates that the combined PF contribution from both employers should not exceed the statutory limit of 12% of Rs 15,000, which is Rs 1,800. So, if the total PF contribution from both employers exceeds this amount, the employee will be contributing more than the statutory requirement.
2. ⏰ In terms of working hours, the Factories Act 1948, and the Shops and Establishment Act, which is followed in many Indian states, stipulate that an adult worker shall not be employed for more than 9 hours in any day or 48 hours in any week. If the employee is working beyond these hours, then it could be a legal issue.
3. 💼 The employee must ensure that he/she is able to deliver the required performance in both jobs without compromising on their health and well-being.
If you find that the employee's total PF contribution is exceeding the statutory limit, here's what you can do:
- 📝 Step 1: Have a dialogue with the employee and make him/her aware of the statutory limit.
- 📝 Step 2: If the employee still wishes to continue with the higher PF contributions, they can do so voluntarily. But they should be made aware that the employer is not liable to match this additional contribution.
- 📝 Step 3: If necessary, you can also consult with a labor law expert or the local EPF office for further guidance.
In conclusion, while it's not illegal for an employee to work two jobs and contribute to the PF from both, it's important to ensure that all statutory requirements are being met, and that the employee's well-being is not being compromised.
I hope this helps. Let me know if you have any other questions.
🔔 Please note: This advice is based on general HR practices and may not fully cover specific legal aspects. Always consult with a legal expert for advice specific to your situation.
From India, Gurugram
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Legal Clarification on Termination for Criminal Case & PF Contribution Reduction.pdf