Greetings all members !!
Working for a manufacturing company with 6000+ employee base wherein more than 5000 employees come under worker category at factory, earning the salary range of Rs. 6500 to Rs. 10000. And remaining of approx 500 employees, including myself are at Corporate Office level. The EPF is being provided for factory workers, but never for corporate staff. And for the employees joining the organization at corporate level, the employer / HR team is asking the newbie to sign the form or pre-formatted document which specifies not to enroll on to PF.
Is it legal or illegal what employer is doing? The employees at corporate level are helplessly working from ages.
Looking forward for advises in this regard and would highly appreciate the earliest.
Thanks
From India, Bangalore
Working for a manufacturing company with 6000+ employee base wherein more than 5000 employees come under worker category at factory, earning the salary range of Rs. 6500 to Rs. 10000. And remaining of approx 500 employees, including myself are at Corporate Office level. The EPF is being provided for factory workers, but never for corporate staff. And for the employees joining the organization at corporate level, the employer / HR team is asking the newbie to sign the form or pre-formatted document which specifies not to enroll on to PF.
Is it legal or illegal what employer is doing? The employees at corporate level are helplessly working from ages.
Looking forward for advises in this regard and would highly appreciate the earliest.
Thanks
From India, Bangalore
Dear Sir,
It is illegal if they are asking to sign the per-formatted form . As per the EPF Act. you need to submit your declaration in Form 11 prescribed under the EPF Act.
In this form You have to declare the following:-
* (a) I was last employed in M/s .
(Name & full address of the establishment)
and left service on ..[Prior to that, I was employed in] ..
from to ..
* (b) I/Was a member of ...Provident Fund
and also of the Family Pension Fund from ..to ..and
but Not .
my account numbers Was/Were
* (c) I have/have not drawn any superannuation benefits in respect of my past service from
any employer.
* (d) I have/have not drawn the amount of my Provident Fund/Family Pension Scheme.
* (e) I have/never been a member of any of any Provident fund and/or Family Pension Scheme.
And if your declaration is that you were not covered under the PF with your earlier employer OR you were covered and withdrawn your PF and EPS before joining this establishment. And now you are getting salary more than 6500/- as basic then PF is not mandatory else they will have to enroll you as a member of EPF.
Regards
Sanjeev Kwatra
From India, Delhi
11It is illegal if they are asking to sign the per-formatted form . As per the EPF Act. you need to submit your declaration in Form 11 prescribed under the EPF Act.
In this form You have to declare the following:-
* (a) I was last employed in M/s .
(Name & full address of the establishment)
and left service on ..[Prior to that, I was employed in] ..
from to ..
* (b) I/Was a member of ...Provident Fund
and also of the Family Pension Fund from ..to ..and
but Not .
my account numbers Was/Were
* (c) I have/have not drawn any superannuation benefits in respect of my past service from
any employer.
* (d) I have/have not drawn the amount of my Provident Fund/Family Pension Scheme.
* (e) I have/never been a member of any of any Provident fund and/or Family Pension Scheme.
And if your declaration is that you were not covered under the PF with your earlier employer OR you were covered and withdrawn your PF and EPS before joining this establishment. And now you are getting salary more than 6500/- as basic then PF is not mandatory else they will have to enroll you as a member of EPF.
Regards
Sanjeev Kwatra
From India, Delhi
* (a) I was last exployed in M/s
.
(Name & full address of the establishment)
and left service on ..[Prior to that, I was employed in] ..
from to ..
* (b) I/Was a member of ...Provident Fund
and also of the Family Pension Fund from ..to ..and
but Not .
my account numbers Was/Were
* (c) I have/have not drawn any superannuation benefits in respect of my past service from
any employer.
* (d) I have/have not drawn the amount of my Provident Fund/Family Pension Scheme.
* (e) I have/never been a member of any of any Provident fund and/or Family Pension Scheme.
From India, Delhi
(Name & full address of the establishment)
and left service on ..[Prior to that, I was employed in] ..
from to ..
* (b) I/Was a member of ...Provident Fund
and also of the Family Pension Fund from ..to ..and
but Not .
my account numbers Was/Were
* (c) I have/have not drawn any superannuation benefits in respect of my past service from
any employer.
* (d) I have/have not drawn the amount of my Provident Fund/Family Pension Scheme.
* (e) I have/never been a member of any of any Provident fund and/or Family Pension Scheme.
From India, Delhi
Hi Shreyas,
Mr. Sanjeev has rightly pointed out the provision vis a viz the membership requirement of the EPF Scheme. What your HR Department is asking/trying to achieve what was logical exclusion from the PF Membership in the earlier times when the wages of the employees used to be much less and it was really not used to be a preferred tool of retirement considering the absurdly low returns.They are trying to take benefit of this provisions to reduce the Costing.
Anyhow, can you share the per-formated letter which they are trying to get and signed from the new employees (hide company's name for obvious reasons) so as to check if it'll be valid if contested by the Department or an employee (who has denied membership) based on this wrong declaration. The law just asks the employer to decide the employees EPF membership based on the declaration he makes in Form-11 and if the employees, do not declare anything about its previous membership/being denied the same ( as your HR is doing) one can do nothing because the Company when challenged will take shelter of the declaration they are obtaining by hook or crook.
I don't think one can do much in this given scenario because the company'll always have upper hand to use this provisions to its advantage.
Sincerely,
Amit Kumar
From India, Delhi
Mr. Sanjeev has rightly pointed out the provision vis a viz the membership requirement of the EPF Scheme. What your HR Department is asking/trying to achieve what was logical exclusion from the PF Membership in the earlier times when the wages of the employees used to be much less and it was really not used to be a preferred tool of retirement considering the absurdly low returns.They are trying to take benefit of this provisions to reduce the Costing.
Anyhow, can you share the per-formated letter which they are trying to get and signed from the new employees (hide company's name for obvious reasons) so as to check if it'll be valid if contested by the Department or an employee (who has denied membership) based on this wrong declaration. The law just asks the employer to decide the employees EPF membership based on the declaration he makes in Form-11 and if the employees, do not declare anything about its previous membership/being denied the same ( as your HR is doing) one can do nothing because the Company when challenged will take shelter of the declaration they are obtaining by hook or crook.
I don't think one can do much in this given scenario because the company'll always have upper hand to use this provisions to its advantage.
Sincerely,
Amit Kumar
From India, Delhi
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