Dear Experts,
I have a query. If an employee doesn't follow the exit formalities properly, and for that, if his F&F is getting delayed, will the company/employer wait to deposit PF amount till the time the F&F issue gets settled, or even before settling F&F, the employer is supposed to deduct and deposit the PF amount.
I know the 15th of the subsequent month is the last date of PF deposit. And before that date, if the F&F issue is not resolved (or maybe a legal notice tussle is going on regarding notice pay), how does the employer treat the PF deposit.
Just for example, if an employee leaves an employer on 20th September, but F&F is not settled yet, once it's settled, can the employer deposit the PF amount now, or does he have to deposit it before 15th October irrespective of the tussle because the last working day was 20th September, which means the subsequent month was October.
Please suggest.
From India, Kolkata
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14I have a query. If an employee doesn't follow the exit formalities properly, and for that, if his F&F is getting delayed, will the company/employer wait to deposit PF amount till the time the F&F issue gets settled, or even before settling F&F, the employer is supposed to deduct and deposit the PF amount.
I know the 15th of the subsequent month is the last date of PF deposit. And before that date, if the F&F issue is not resolved (or maybe a legal notice tussle is going on regarding notice pay), how does the employer treat the PF deposit.
Just for example, if an employee leaves an employer on 20th September, but F&F is not settled yet, once it's settled, can the employer deposit the PF amount now, or does he have to deposit it before 15th October irrespective of the tussle because the last working day was 20th September, which means the subsequent month was October.
Please suggest.
From India, Kolkata
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Up to the 20th September, salary is credited on the 30th September (or 1st October) to the employee ledger. Whether it is paid or not is another issue. Once the salary is accrued, ESIC/EPF and professional tax are payable. F&F settlement, penalties, or recoveries do not affect the basic concept of salary.
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Hi,
Does that mean that the employer was supposed to deposit the EPF and deduct TDS before the 15th of October in this case, irrespective of the payment of salary/F & F? You have mentioned that F & F doesn't affect the salary concept. So, is the employer responsible for deducting and depositing the statutory payments even before the payment of F & F in this specific case?
From India, Kolkata
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Does that mean that the employer was supposed to deposit the EPF and deduct TDS before the 15th of October in this case, irrespective of the payment of salary/F & F? You have mentioned that F & F doesn't affect the salary concept. So, is the employer responsible for deducting and depositing the statutory payments even before the payment of F & F in this specific case?
From India, Kolkata
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salary paid or not is not issue for labor laws, but payable means , deduction and payment of statuary contributions within stipulated time.
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Dear Arnab,
The PF Act states that the employer should deposit the due contribution and later recover it from the employee. Accordingly, the wages for Sep 16, after adjustments, should be deposited on or before 15-10-2016. F & F has no connection to the due amount. If any excess amount is deposited, it can be recovered from F & F once completed. If any amount cannot be recovered, it becomes a bonus to the member.
Thanks, Vidyadhar Bhat
From India, Pune
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The PF Act states that the employer should deposit the due contribution and later recover it from the employee. Accordingly, the wages for Sep 16, after adjustments, should be deposited on or before 15-10-2016. F & F has no connection to the due amount. If any excess amount is deposited, it can be recovered from F & F once completed. If any amount cannot be recovered, it becomes a bonus to the member.
Thanks, Vidyadhar Bhat
From India, Pune
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Employees' PF Appellate Tribunal Procedure Rules 1997.pdf
PF WITHDRAWAL RULES.zip