Payment of salary
ASRUJ@aratrika
(Querist) 06 November 2015
This query is : Resolved
Dear Sir /S,
I earnestly look forward to have experts opinion on the following issues.
My brother is working in a proprietorship firm which used to pay salary by cheque but this (Oct)month they have decided to pay the salary by cash which will not be booked in the accounts as if salary is not paid for that particular month and accordingly there will be no statutory payments such as PF, PT, ESI will be deposited to the authorities. It is a rumor in that company that may be in the next month same procedure shall be followed because the profit percentage is dropping as required by Bank. My query is a) is it legal to stop deposit PF or ESI and if it is legal how many months they can do so. b) Will there be any crisis for treatment if any body becomes sick during that period. c) How and to what extend employees will be affected if PF not deposited few months. and d)Most important what are the steps can be taken to stop this sort of practice.
Anticipating an early response since the matter is very urgent.
Thanks & regards
Kumar Doab
(Expert) 07 November 2015
a)NO
b)Yes
c)PF a/c may become inactive.
d) Approach RPFC,Jurisdictional ESIC office,O/o Labor Commissioner,Inspector appointed under (Name of the state) Shops & Estbs Act,Payment of Wages Act, Min.Wages Act
Collect salary slip duly signed by employer and with seal and date, for each month.
Sudhir Kumar, Advocate
(Expert) 07 November 2015
a) is it legal to stop deposit PF or ESI and if it is legal how many months they can do so.
NO DAFAULT NOT EVEN FOR A SINGLE DAY IS ALLOWED.
b) Will there be any crisis for treatment if any body becomes sick during that period.
NOT UNDERSTOOD WHAT DO YOU MEAN.
c) How and to what extend employees will be affected if PF not deposited few months.
THEY ARE LOSERS.
and d)Most important what are the steps can be taken to stop this sort of practice.
AS ADVISED BY MR KUMAR DOAB
ASRUJ@aratrika
(Querist) 09 November 2015
Dear Sir /S,
Thank you all especially Kumar Doab Sir for a prompt reply. Further to my previous post I would like to add that there is no payslip issued since there is no salary paid for the month of October (officially). The PF consultant has expressed that a mere Rs. 7.00 to be paid per EPF a/c to keep that a/c active which is not understood by anybody. Is there any such provision in EPF Act.Kindly highlight. One more thing if any body in future claim that his salary was not paid for that particular month then what will be the consequences.
Kumar Doab
(Expert) 09 November 2015
There is no recognized entity 'PF Consultant'.
EPFO can act against appointment of PF consultant and against PF Consultant.
Rs.7/month are the monthly charges for registration and to keep registration by employer.
The salary slip is not being given so that there is no evidence on paper with employee that PF,ESIC,TDS is not deducted and deposited.
Still it is offense.
EPFO can take suo motu notice of such violations.
You may speak to RPFC/PRO in any PF office and directory is available at:
www.epfindia.gov.in
However salary slip is be signed by both employee/employer and to be supplied atleast a day before fixed day disbursement of wages.
The onus to prove wages were paid falls on employer.Employer has to prove.
You have initiated many queries.
Apparently you are with same employer till date.
You are HR personnel.
You can very well understand the implications and remedies of each matter.
K.S.Srinivas
(Expert) 12 November 2015
Agreed with Sri Kumar Doab.
