Hi all,
I have a query regd. an employee who left us on 3-Jan-17. However his PF contribution has not been paid by us since Apr, 16. Now he has applied for PF transfer as he has joined a new organization. Now my question is that can we mark him exit and pay the pending contribution later on as our company is going through financial crunches? Is it possible? Or he can only apply for PF transfer once we make the payment?
Thanking you in anticipation.
From India, Delhi
I have a query regd. an employee who left us on 3-Jan-17. However his PF contribution has not been paid by us since Apr, 16. Now he has applied for PF transfer as he has joined a new organization. Now my question is that can we mark him exit and pay the pending contribution later on as our company is going through financial crunches? Is it possible? Or he can only apply for PF transfer once we make the payment?
Thanking you in anticipation.
From India, Delhi
If you have deducted PF from salary & not deposited it, you are in for very serious trouble. At once you must deposit both, employee & employer share. PF office will not listen to your argument of financial crisis.
From India, Mumbai
264From India, Mumbai
Dear Mr. Sharma
Most probably you have to rejoin that employee for the said month . pay his contribution as per wage register , pay employer's contribution . Pay 7Q and 14B Account also for Damages and Interest .
Regards
From India, Kolkata
Most probably you have to rejoin that employee for the said month . pay his contribution as per wage register , pay employer's contribution . Pay 7Q and 14B Account also for Damages and Interest .
Regards
From India, Kolkata
Sharmaji,
1. Whatever company has done is unethical and immoral as it has deducted the amount from salary but has not deposited. It is a criminal offence under EPF Act. I am pasting the relevant provision here
14. Penalties.
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act, the Scheme, the Pension Scheme or the
Insurance Scheme or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement
or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand
rupees, or with both.
(1A) An employer who contravenes, or makes default in complying with, the provisions of section 6 or clause a of sub-section 3 of
section 17 in so far as it relates to the payment of inspection charges, or paragraph 38 of the Scheme in so far as it relates to the
payment of administrative charges, shall be punishable with imprisonment for a term which may extend to three years but –
(a) which shall not be less than one year and a fine of ten thousand rupees in case of default in payment of the employees‟ contribution
which has been deducted by the employer from the employees‟ wages;
Besides above you will face inquiry under Section 7A of the Act simultaneously.
Your Directors are at risk. Further under IPC it will be treated as Criminal Breach of Trust.
Please deposit the money with PF department ASAP on your own otherwise if the employee makes a complaint, it will act as trigger.
With warm regards
Bharat Gera
HR Consultant
From India, Thane
1. Whatever company has done is unethical and immoral as it has deducted the amount from salary but has not deposited. It is a criminal offence under EPF Act. I am pasting the relevant provision here
14. Penalties.
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act, the Scheme, the Pension Scheme or the
Insurance Scheme or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement
or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand
rupees, or with both.
(1A) An employer who contravenes, or makes default in complying with, the provisions of section 6 or clause a of sub-section 3 of
section 17 in so far as it relates to the payment of inspection charges, or paragraph 38 of the Scheme in so far as it relates to the
payment of administrative charges, shall be punishable with imprisonment for a term which may extend to three years but –
(a) which shall not be less than one year and a fine of ten thousand rupees in case of default in payment of the employees‟ contribution
which has been deducted by the employer from the employees‟ wages;
Besides above you will face inquiry under Section 7A of the Act simultaneously.
Your Directors are at risk. Further under IPC it will be treated as Criminal Breach of Trust.
Please deposit the money with PF department ASAP on your own otherwise if the employee makes a complaint, it will act as trigger.
With warm regards
Bharat Gera
HR Consultant
From India, Thane
How will you file the returns without paying the PF dues ?
He can not get his PF transferred till you pay, but the moment he files his application, your company's violation will come up and get flagged. You are going to get notices and then criminal complaints will be filed freezing your bank accounts.
So pay the amounts due, or at least pay for this Guy and file a revised return later
From India, Mumbai
He can not get his PF transferred till you pay, but the moment he files his application, your company's violation will come up and get flagged. You are going to get notices and then criminal complaints will be filed freezing your bank accounts.
So pay the amounts due, or at least pay for this Guy and file a revised return later
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf