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Pf contribution for contract labours

(Querist) 23 June 2013 This query is : Resolved 
Hi, till March end, I was heading business and operations of a limited company and have resigned which has been accepted by the management. As I left the company with dissent and the owner started harassing me. First he sent me a lawyer notice with many accusations and later filed a FIR with sections 405/406/420/120b . Out of which one of the allegations is that, contract labour contractor didnt pay the pf contribution properly during my tenure as head of business and for that he is making me responsible, accusing that I pocketed the part of pf contribution. Where as the system is that, Admin Manager, who used to report to me was responsible for day today affairs. He used to collect the attendance register, month end total bill used to submit and I used to endorse the bill and in turn bill used to get forwarded to finance department for the payment. Payment is always done either by crossed cheque/RTGS to the contractor(with valid labour licence & service tax registration in his firm`s name)and he inturn used to disperse the salaries to the labour and he used to remitt the pf on monthly basis and proof of remittance used to be submitted every month before next months payment. In this scenario, how can management hold me alone responsible for non payment of pf ? is complete system/management is not responsible if there is no proper payment of pf? how can the owner file a crimonal case against me? pls clarify.
A. A. JOSE (Expert) 24 June 2013
As far as the issue relating to non payment of PF contribution by the contract labour contractor, prima facie there appears to be some justification in your stand that you alone cannot be held answerable for the same. However, from the Sections under which the FIR is stated to have been filed against you, it appears that the Company Management might have some other strong grounds for initiating criminal case against you and as such unless complete facts are made known and details of all charges levelled against you are stated, it would not be proper to comment on the same please.
Raj Kumar Makkad (Expert) 24 June 2013
You cannot be absolved from your liabilities, however, some other persons are also involved in the offence which should also be joined as accused persons with you.
pharma professional (Querist) 24 June 2013
Thanks sirs for the replies.

I am just a part of hierarchy, Managing Director is the ultimate authority in the hierarchy, to whom I was reporting to. The day to day follow ups were done by admin & finance. In this case, am I alone responsible? or entire hierarchy? As the motive was to harass me, the MD of the company is trying to use some testimonies by staff against me, that too after I resigned grace fully from my service.
Raj Kumar Makkad (Expert) 24 June 2013
I can imagine your grievances but at this stage nothing can be done if a prima-facie evidence comes against you may it false or true. Entire hierarchy is responsible.


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