EPF Msmanaged
RAKESH TRIKHA
(Querist) 29 April 2010
This query is : Resolved
MY self is working as lecturer in a Non govt. aided college. affiliated to GNDU Amritsar. In April 1988 College adopted to send the PF of all the employees to PF commissioner Amritsar( irrespective of their salary). Subsequently the EPF of another employee on joining the service was sent to PF commission in Dec 1988.( whose salary was much above the prescribed limit like other lecturers as mentioned above).
After that the Management stopped sending EPF of the other employees to PF Commission and started depositing PF in Saving Account of a Bank at an interest rate of 3.5% at their will .
please clarify
1. Can a management use TWO Different yard sticks with employees of same kind governed by same management/ same govt. rules. Both set of employees receiving grant from same source and having same set of service conditions. 1 set of employees PF with PF commissioner and another set PF is mismanaged and being deposited untimely at mere 3.5%
2. As per EPF law "once an establishment( here College)adopts to send EPF to PF commissioner it is mandatory to send PF of subsequently appointed employee to PF commissioner ( by taking option from employee)". Please guide me if this is correct or not.
3. Please suggest me the remedies we can take regarding this . The complaint is lying pending with PF Commissioner Amritsar( 15 lecturers filed the complaint).
It is important to mention here that when college agreed to send PF of all employees first time there were many "excluded employees" in term limit of pay. please guide can management suddenly make up their mind not to send PF of other employees without taking permission from any competent authorities .
4. Can same kind of employees( in terms of pay and service conditions) be treated differently in terms of EPF benefits.
5. Is the amount deposited in Bank in a Saving Bank account in the name of PF is eligible for Income Tax Rebate? Is the income Tax free in the event of complete withdrawal on retirement.
I will be highly obliged if experts guide me in this matter point wise
Thanking you all in anticipation
Raj Kumar Makkad
(Expert) 29 April 2010
1. Management as adopted purely illegal means in this respect. No two standards can be adopted in such matter.
2. EPF & MP Act 1952 ia applicable in this matter and according to its provisions, once an establishment covered shall be treated covered fro ever so it is illegal to stop subsequent employees contribution and deduction.
3. Law is very clear. If the management has provided EPF facility despite of his falling in the category of exempted employee then such deduction and contribution cannot be stopped sue motto but if subsequent employees also fall in the same category then management is not bound to follow the previous precedent or error committed once.
4. If an employee at the time of his joining gets Rs. 6500/- per month as wages (whose basic plus DA plus food concession, if any plus retaining allowance, if any come to more than Rs. 6500/- per month) then he s not required to be provided the facility of EPF as per provisions of EPF & MP Act so it is upon the management to provide this facility or not and such employees shall be treated as exempted employees under section 17 of Act.
5.Rebate in the income tax shall be available but not Income Tax rebate at the time of final withdrawal because this is not statutory PF Fund.
RAKESH TRIKHA
(Querist) 29 April 2010
Thank you for such a detailed reply. But in point 4 sir, i want to mention here that when management decided to send EPF of all teachers to PF Commissioner all the teacher's salary were above prescribed limit and still their PF is continuing. Under what section of EPF Act we can claim our membership to PF commission .
In addition to this on our complaint Guru Nanak Dev University to which college is affiliated directed the Principal of college to deposit the PF of all the employees with PF commission only and also made amendments in University Calendar governing service conditions of employees.So on the basis of it Can PF commissioner ask college to deposit PF of all the employees of college immediately?
RAKESH TRIKHA
(Querist) 12 June 2010
In this connection PF commissioner has issued notice to the principal under section 15(2) . and asked principal to file written statement regarding accounts maintained in the bank.
University asked them to send pf of all employees to PF commissioner in Feb 2010 but college did not send it to PF commissioner.
Please guide how it is going to help us and how we are going to get recovered from the previous loss.
thanks all legal experts in advance please guide
