Pf 7a enquiry
Querist :
Anonymous
(Querist) 17 September 2011
This query is : Resolved
Respected Seniors,
One of the Infrastructure Company received a notice from PF authorities for 7A enquiry under EPF & MP Act, 1952.
Facts of the Matter:
1. The infrastructure company engaged labour through some contractors in and around India
2. The contractors not contributed Provident Fund for their Casual Labour as they were in migrant nature.
3. Now PF authorities asked to the Infrastructures company to pay the contributions, as a principle employer both contributions and administration charges i.e., (25.61%). It may cost in Crores of Rupees
Requesting for remedy for the following Point:
If, Infrastructures Company paid all the contributions, as advised by PF authorities, but there is no beneficiaries for the above said contributions, as labours are not found due to their migrant nature. Hence, how it is justified for Infrastructure Company.
Please advise and help us...
Thanking you,
R Jagadeesh
Guest
(Expert) 17 September 2011
Dear Jagadeesh,
Such type of unclaimed amount of PF and MP etc. may be lying unclaimed to the tune of thousands of crores with the EPF Organisation, but the question of implementation of legal provisions come to the fore, so far as the duties and responsibilities of the principal employer is concerned towards the contract labour.
However, before any solution is suggested, you are requested to provide following more information;
1) Whether there was any dispute raised by any party about non-contribution towards the EPF etc.?
2) Whether the present notice is with the intention to hold an enquiry and the principal employer has been summoned to attend the inquiry or a straight direction has been issued by the EPF authorities to deposit the amount and what is that amount?
3) Has the infrastructure company also received any notice from the EPF authorities and replied by the infrastructure company?
It would be better, if you send a copy of the notice through email at [dcgroup1962@gmail.com] for detailed exmination and analysis of the situation.
Raj Kumar Makkad
(Expert) 17 September 2011
The querist is clear. Notice is not for deposit of certain amount but to take part in Enquiry Proceeding under section 7A of ibid Act. It hardly matters if enquiry is being initiated on complaint by labour or sue-motto by EPF authorities. There is no benefit in either situations.
Company being Principal Employer is liable to ensure compliance of the Act which it has failed to do so. In view of this, it is advised to show minimum wages of those fled labour so that liability may be minimised otherwise you can do nothing in this matter.
prabhakar singh
(Expert) 17 September 2011
It is section 2(f)"(i)employed by or through a contractor in or in connection with the work of the establishment;"
That takes hold on you and catches you with liability.The Act seems silent on the issue of availability or nonavailability of the beneficiary.But the point is interesting,how writ courts view it is a matter to be seen if you proceed to challenge up to last stage.
Querist :
Anonymous
(Querist) 17 September 2011
Yes Sir, I agree with your concern and as per the act, but while doing the work the authority under the act was silent and now they are asking to the principle employer, in another angle, the principle employer trying to ask his past contractors, those who are contactable but what to do for other non-availability contractors...
prabhakar singh
(Expert) 17 September 2011
In fact there is a presumption that no one can plead ignorance of law,it is another matter that law is never known to even those who passed them.
So it is us to whom it is applicable to look forward what law governs our activities.??
K.S.Srinivas
(Expert) 18 September 2011
The Contractor should have remitted his (employer) contribution and the employee contribution together adm.charges etc., every month by way of challan and filed monthly returns 12A, Forms 6 and 10 etc. to the EPF office. As per the EPF Act if the contractor fails to follow the Act, then obligation is on the part of the Principal Employer (The infrastructure company in the present case). The infrastructure company as well as the principal employer should have maintained certain registers as per Contract Labour Regulation & Abolition Act, 1970. This is statutorily binding on the Contractor. In these registers the particulars relating to workers will be available. Hence, the company is supposed to remit the contributions.
Guest
(Expert) 21 September 2011
Dear Jagadeesh,
But, you have not replied my queries so far.
