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Regarding PF contribution not made by Employers

(Querist) 28 September 2009 This query is : Resolved 
I would like to know on the following matter. In case a limited company which is covered in PF Act in WB has a branch in UP, where it has employed less than 10 employess and most of them are appointed at fixed remuneration at 12000 PM or more. Has company any liability of deduction of PF at the branch and if so what in case the company has not done so? When asked about this matter the employees were told that as their appointment was at a salary more than 6500 PM they are not covered under PF Act is it true? What remedy lies if the company has not issued appointment letters but salary is paid through cheque?
Raj Kumar Makkad (Expert) 28 September 2009
The company has done no offence and the employee whose initial salary (Basic+DA+Food concession, if any+retaining allowance, if any)is more than rs. 6500/- are exempted employees from the implementation of EPF & MP Act, 1952 but it is the duty of the company to seek exemption from APFC of the area, wherein the statement is sent. In form no. 5, the intimation of appointment of such employees is required to be sent and company has no liability to extend this facility of EPF to those employees from the very first day. issue appointment letters without any hitch.
A K CHANDOK (Expert) 28 September 2009
we have to check up following-
What is the bifurcation of this salary in r/o other factors eg. basic salary, hra, trans.allowance, etc. etc.
whether they were members of epf before joining this company.
if not found covered under the definition of employee u/s 2 (f), they are to be treated as excluded employee .
joyce (Expert) 29 September 2009
employers has to sent the details of their employees to EPF office, if any transfer is to be made to the other state but same company, then employee has to intimate this to company's MD; else intimate about the details in EPF office and latter take decision.
Sarvesh Kumar Sharma Advocate (Expert) 29 September 2009
agree with joyce.


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