ramaswamy shankar (aaa) 23 May 2012

Pf dues-- seeking clarification

I am addressing this message seeking a clarification.....

I was in employment for a period of nearly 6 months wherein, PF deduction and contribution was covered under my terms of employment. The employer gave me a form to fill up for enrolling into the PF Scheme and thus seek a registration. Pending the allotment of a PF enrolment number to me, the employer continued to deduct PF from my salary as per rules. As per my service terms/appointment letter, there is contribution to PF both from my (employee) side and employer.

During this period, I kept on enquiring with my Employer regarding my regn number with the PF, but apparently, as mentioned by the employer, since their employee strength had not crossed 20 ( twenty) , the PF department at Bangalore,was not accepting the Registration, It is six months since I have left the services of this company and I continue to follow up with them on the status of my PF accruals ( both employee and employer contributions) and I keep getting the same reply that since their employee has not crossed the threshold number of 20 ( twenty), they are uuable to register and remit my PF contributions with the PF authority.

Having brought to your kind information, the aforesaid background, I seek the following clarifications.

a)What happens to my PF accruals ( both employer and employee) contribution since the Employer has not yet registered with PFAuthority for the reason cited above ( less than 20 employees).

b) Can my employer return the PF accruals back to me ( both employer and employee contribution) since they are unable to register for PF as of now and neither are they able to confirm how long will they take to Register with PF and Remit my proceeds.

c) I am in complete suspence and since I am no longer in any employment which has the benefits of PF and that I am in urgent need of the funds to repay housing loans and provide for my daughter's higher education, I would like to know how I can access the funds which is legitatimely due to me.

d) And lastly, can I ask my employer to give me a proper statement and a declaration stating the amoutn held against my PF accruals ?

I will be greatly obliged for your advice on how the matter above can be resolved legitimately towards me.

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3 Replies

Kumar Doab (FIN) 23 May 2012

First of all you may submit a written representation to the good offices of your appointing authority, MD, Head-HR and narrate the facts. The good offices are expected to know the rules, get in touch with the offices of government to comply with rules, norms.

In all probabilities employer shall refund the deducted amounts. It is your choice to agitate for interest /damages.

ramaswamy shankar (aaa) 24 May 2012

Hi Kumar,

Thanks for your reply.

Am really keen to know what the "RULES" state in respect of pts (a), (b) and (c) of my post. Do you have any idea pls ?

Explaining to HR, MD etc all has been done..but the only reply that I have got is "we have not crossed the 20 ppl headcount and no sooner we do so, we will remit to PF and inform you". Anxiety is if 20 will happen at all in the near visible future !!

Thanks

Kumar Doab (FIN) 25 May 2012

APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

Employing 20 or more persons .

Voluntary Coverage

If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment ( voluntary coverage under section 1(4) )

From your post is appears that your employer has not opted for voluntry contribution.

The reply(ies) given by your employer is verbal or in writing? You may visit the PF office with all details and meet the PRO,APFC,RPFC and you shall be guided whether the application of the company was ever rejected or not.You have the option of using RTI route also.If the employer has misrepresented employer can be punished.

Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20.

if the employees contribution is deducted but not deposited these are provisions for penalty.

However since your employer has stated in appointment letter implying the establishment is covered and thus benefit shall be applicable, employer could have opted for voluntry contribution.

Employer has stated that application for registration has been rejected then why should the employer continue to hold on the monies coolected from emplyees?

You should visit PF office.Once you drill sense into employer you may get your amounts from employer.