PF Scam in one Organisation
Ranjeet Singh chauhan
(Querist) 07 April 2011
This query is : Resolved
Hi All,
Please help me with one case study here. One School hired 100+ emplyees on contract basis with some other company (that provide manpower to the companies with contact with them, Lets say company is A).
All the employees were on parole of that contracted company not on the school payrole.
The contracted Company provided PF for 3-4 years and then school (where the 100+ people were employeed)contracted with other man-power providing company. All the 100+ people were same in spite of the change of the contracting copmpany. All the 100+ employees were now on the parole of that new contracted company (lets say B).
Recently few employees left the school and tried to withdraw their PF. They were amaged to know that the new contracted company (B) did not provided PF benefits to the employees...
We have written complaint from all the 100+ employees against their dissatisfaction that they were not been told about this damning fact.
Can we term it as PF scam and if yes what are the provisions were we can help those aggrived persons and under which sections of the PF Act.
I am really in need to get this resolve as all those 100+ people are from under previledge sect of society and this case will decide the future of their child as they had planned their child future by keeping in mind the money they would gonna get.
Thanks & Regards,
Ranjeet Singh Chauhan
President, Social Empowerment & Welfare Association
Kirti Kar Tripathi
(Expert) 07 April 2011
The employees can make complaint to PF. Authorities. Not depositing of R.F. contribution is an offence under the EPF Act and also Section 406 of I.P.C.. The make compliance is the legal responsibility of employer and also the provident fund department is responsible for getting compliance from employer. No employer can escape from its responsibility by saying that PF was not deducted. In case, PF department does not take action, the employee can go for mandamus against the PF department . The PF department can recover the amount with interest and penalty under section 7A of the Act.
Ranjeet Singh chauhan
(Querist) 08 April 2011
Thank you so much for your timesir, I really really value your pointfo viewon that......
As I have to prepare a detail case study and will get in touch with PF authorities and Police Commissionor as well.So please help me with mmore detail in terrms of act violation and IPC violation on this (if there is any).....
A K CHANDOK
(Expert) 08 April 2011
Dear Chauhan ji,
From the facts given by u, it is clear that all the three establishments are cocearble under the EPF & MP Act 1952. The school is the Principal employer and the the service providers are the contractors. The school is responsible for compliance under the act in respect of contractor employees also evn if the contractors are having their own code nos.RPFC has got all the powers to get compliance from the school as well as from contractors.
Pl. meet the RPFC (only). He will definitely take suitable action. keep in touch with him till ur problem is solved
with regards,
Chandok--ex RPFC
Ranjeet Singh chauhan
(Querist) 08 April 2011
I really welcome both Mr. Tripathi and the Expert (as you are exRPFC).
Thanks a Lot.
Ranjeet Singh Chauhan
B.B.R.Goud.
(Expert) 10 April 2011
hi. i do agree with our learned friend RPFC for an appropriate action. thank you one and all.
