Hello Seniors,
Please help to know what is right !!! How to recover from the mistakes on Compliance?
Background:
1. Started a proprietorship company in June 2008 ==> [Company A]
2. Conducted Free [no fee] training programs for lots of Job seekers. No stipend/salary/anything in Company A.
3. Started a Pvt Ltd company [same name] in June 2009 ==> [Company B]
4. Continued the same Free training and for deserving few [10] paid Rs.5000/- stipend via cheque payments from Company B.
5. No PF/ESI/HR Letters or any Formalities followed in Company B for anyone.
6. Started a new Pvt Ltd company [different name] in January 2010 ==> [Company C] - was not aware of NAME CHANGE option.
7. All those people getting Stipend from Company B moved to Company C, no letters/nothing followed for this back then.
8. All pay increased from Rs.5000 Stipend to Rs.12000/-, however no PF/ESI/Insurance/Gratuity/HR Letters followed then.
9. Also, only from April 2013, started deducting/contributing PF and followed other compliance in Company C for all.
10. Also, under Company C opened Gratuity account with LIC and kept paying some money annually till date.
11. Company A, Company B is not operational since then. No records could be found now.
12. Company C, grew, had more people join, attrition, hire, etc. Training become an online Product, etc.
13. During this course of time, many people who left from Company A or B or C, quit on their own, finding better jobs, finishing the formalities of exit letters, etc. No issues so far from anyone.
14. There might be few who might have NOT quit properly [without notice] and Company C might have stopped payroll from the day they did not come to work under Company C, considering they quit.
15. Company C did not send any letters/emails/phones/chasing each individual why they are not coming to work or close the letters/records. Just stopped the payroll after 30 days of not present at work.
ISSUE:
1. One such Ex.employee [Mr.XYZ] part of Company C, who joined the free training in Company A since Nov 2008, got into Company B and transferred to Company C, continued to work and did not show up to work since June 2014.
2. Company C stopped payroll since July 2014 and did NOT send letter/emails/phones/chasing the individual assuming it is a quit.
3. Nov 2016 - Mr.XYZ [ex.Employee] inquires about his PF, Gratuity and Retrenchment, sends a registered letter and asks for PF, Gratuity from Nov 2008 and states in the letter he was let go by the company and claims Retrenchment also.
3. Mr.XYZ, was there 8 months in Company A [free training], 7 months in Company B [stipend] and 4.3 years in Company C.
4. Company C did not let go anyone during that time. Many others are still with the company from that time. Checked the records.
5. Company C, called Mr.XYZ for a meeting. During the discussions, Mr.XYZ says high regards about company, also agrees company did not directly tell him to not come or let him go. However, Mr.XYZ says he assumed since goals told in Company C meetings were not met and it was told if goals are not met, none of us could survive/continue, etc, he assumed he could not come.
6. When asked why sending a letter after 2.5 years? Mr.XYZ says, only now I wanted to claim his PF, Gratuity and also figured out about Retrenchment while browsing online and that is why asking for 5.8 years [8 months + 7 months + 4.3 years] PF + Gratuity and Retrenchment compensation and sent the registered letter, etc.
7. During this time, from April 2013 to June 2014, Mr.XYZ could not come to work regularly, due to personal situations/loss of family member. Totally for over 110+ days Company paid full pay without any loss of pay deductions considering the personal situation. Mr.XYZ also agrees company supported.
8. Mr.XYZ was receiving Rs.35000/- salary during June 2014.
9. Company A, B and initial period Company C records are not there now [letters or data, etc]
10. PF was deducted/contributed only from April 2013 in Company C and company has given the support to get that amount.
11. Gratuity is with LIC, only few with >5 years exists in Company C from the start.
12. No letters for exit were sent for not coming to work to anyone. Payroll stopped for Mr.XYZ from June 2014.
---------------------------------
QUESTIONS:
1. What should be the PF amount to Mr.XYZ? From April 2013? or from Jan 2010 or June 2009 or Nov 2008? How much?
* Also how to go backdated on PF for others as well in this case?
2. What should be the Gratuity amount to be paid to Mr.XYZ? From April 2013? or from Jan 2010 or June 2009 or Nov 2008?
* will the money from LIC to be paid via Trustee account to individual name or any other method?
3. Is the Company A/B/C responsible for Retrenchment compensation to Mr.XYZ?
Why and if so, what is the amount?
Why not? What is the procedure to be followed?
Please advise.
Thanks
Sid.
From India, Madras
Please help to know what is right !!! How to recover from the mistakes on Compliance?
Background:
1. Started a proprietorship company in June 2008 ==> [Company A]
2. Conducted Free [no fee] training programs for lots of Job seekers. No stipend/salary/anything in Company A.
3. Started a Pvt Ltd company [same name] in June 2009 ==> [Company B]
4. Continued the same Free training and for deserving few [10] paid Rs.5000/- stipend via cheque payments from Company B.
5. No PF/ESI/HR Letters or any Formalities followed in Company B for anyone.
6. Started a new Pvt Ltd company [different name] in January 2010 ==> [Company C] - was not aware of NAME CHANGE option.
7. All those people getting Stipend from Company B moved to Company C, no letters/nothing followed for this back then.
8. All pay increased from Rs.5000 Stipend to Rs.12000/-, however no PF/ESI/Insurance/Gratuity/HR Letters followed then.
9. Also, only from April 2013, started deducting/contributing PF and followed other compliance in Company C for all.
10. Also, under Company C opened Gratuity account with LIC and kept paying some money annually till date.
11. Company A, Company B is not operational since then. No records could be found now.
12. Company C, grew, had more people join, attrition, hire, etc. Training become an online Product, etc.
13. During this course of time, many people who left from Company A or B or C, quit on their own, finding better jobs, finishing the formalities of exit letters, etc. No issues so far from anyone.
14. There might be few who might have NOT quit properly [without notice] and Company C might have stopped payroll from the day they did not come to work under Company C, considering they quit.
15. Company C did not send any letters/emails/phones/chasing each individual why they are not coming to work or close the letters/records. Just stopped the payroll after 30 days of not present at work.
ISSUE:
1. One such Ex.employee [Mr.XYZ] part of Company C, who joined the free training in Company A since Nov 2008, got into Company B and transferred to Company C, continued to work and did not show up to work since June 2014.
2. Company C stopped payroll since July 2014 and did NOT send letter/emails/phones/chasing the individual assuming it is a quit.
3. Nov 2016 - Mr.XYZ [ex.Employee] inquires about his PF, Gratuity and Retrenchment, sends a registered letter and asks for PF, Gratuity from Nov 2008 and states in the letter he was let go by the company and claims Retrenchment also.
3. Mr.XYZ, was there 8 months in Company A [free training], 7 months in Company B [stipend] and 4.3 years in Company C.
4. Company C did not let go anyone during that time. Many others are still with the company from that time. Checked the records.
5. Company C, called Mr.XYZ for a meeting. During the discussions, Mr.XYZ says high regards about company, also agrees company did not directly tell him to not come or let him go. However, Mr.XYZ says he assumed since goals told in Company C meetings were not met and it was told if goals are not met, none of us could survive/continue, etc, he assumed he could not come.
6. When asked why sending a letter after 2.5 years? Mr.XYZ says, only now I wanted to claim his PF, Gratuity and also figured out about Retrenchment while browsing online and that is why asking for 5.8 years [8 months + 7 months + 4.3 years] PF + Gratuity and Retrenchment compensation and sent the registered letter, etc.
7. During this time, from April 2013 to June 2014, Mr.XYZ could not come to work regularly, due to personal situations/loss of family member. Totally for over 110+ days Company paid full pay without any loss of pay deductions considering the personal situation. Mr.XYZ also agrees company supported.
8. Mr.XYZ was receiving Rs.35000/- salary during June 2014.
9. Company A, B and initial period Company C records are not there now [letters or data, etc]
10. PF was deducted/contributed only from April 2013 in Company C and company has given the support to get that amount.
11. Gratuity is with LIC, only few with >5 years exists in Company C from the start.
12. No letters for exit were sent for not coming to work to anyone. Payroll stopped for Mr.XYZ from June 2014.
---------------------------------
QUESTIONS:
1. What should be the PF amount to Mr.XYZ? From April 2013? or from Jan 2010 or June 2009 or Nov 2008? How much?
* Also how to go backdated on PF for others as well in this case?
2. What should be the Gratuity amount to be paid to Mr.XYZ? From April 2013? or from Jan 2010 or June 2009 or Nov 2008?
* will the money from LIC to be paid via Trustee account to individual name or any other method?
3. Is the Company A/B/C responsible for Retrenchment compensation to Mr.XYZ?
Why and if so, what is the amount?
Why not? What is the procedure to be followed?
Please advise.
Thanks
Sid.
From India, Madras
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