Pf
ASRUJ@aratrika
(Querist) 17 March 2012
This query is : Resolved
It has been noticed just a few days back that there was some mistake in assinging PF number to the employees in the FY 2010-11. The same PF number was wrongly assigned to 8 no of new employee which were already assigned previously and the annual return (3A)was also submitted accordingly on the basis of wrongly assigned numbers. Now the fact is some of the employee with original (we can say old assigned)number have resigned but the employee with wrongly assigned number is still working with the same number or vise versa. Now I would like to know what are the consequences may come for the following incident in case:-
a) Employee with old/ new assigned number resigned and want to withdraw PF.
b) Employee with old/ new assigned number resigned and want to transfer PF.
I further would like to know what are the other consequences may come and what are the remedial steps company should initiate in order to rectify the problem.
The annual return for the FY 2011-12 have not yet been submitted and new number to the new employee are not assigned.
Could any body respond to this problem and your early response shall be hignly solicited.
Thanks & regards
A. Ghosh
Guest
(Expert) 17 March 2012
Dear Ghosh,
You should not take all the matters at a time to complicate the matters to greater extent.
At first, do the job of allocating new numbers to the new/later employees and keep on hold for some time to approve withdrawal or transfer of PF money to any old or new employee. If you approve payment/ transfer without sorting out the some issues, the problem can never be expected to be solved and would become quite complicated for the management to struggle with for uncertain time, besides causing legal complications for the management.
For rest of the matter, it would be better to seek help from some service expert by hiring his services, as the problem is not so simple to be tackled through one or two queries in short period without properly handling the affairs and to avoid any legal complications/action.
Sudhir Kumar, Advocate
(Expert) 17 March 2012
AS rightly pointed out by Mr Dhingra, the problem is really not so simple as it appears to be.
You have deposited money of "X" in the account of "Y". This is called embezzelement and punishable under section 406/409 of IPC.(Both are cognizable and non-bailable).
Please also ensure that F/2 is also submitted in respect of each employee.
It is difficult to convince everyone this it to be a mistake.
You are liable to damages under section 14, in respect of non-remittance of dues of new employee.
There is practically no way except another fraud by way of which you can recover the amount back. The concerned old overpaid employee also does not have any option.
First of all you should deposit the unpaid does of new employees. This action saves you from charge of embezzlement.
Even after dual deposit you have to apprise the EPFO in advance. There is a danger that you may be suspected of underreporting in respect of excess paid employees in next years. If you have deposited Rs 10/- this year (Rs 5 of another one) and next year your remittance comes of Rs 5/- than you can be suspected of underreporting.
Till such time this deposit is made, the new employees whose money have gone in other's pocket shall not at any point of time be provoked.
I am afraid you may have to swallow the loss if not interested to face complications as visualised by Mr Dhingra.
ASRUJ@aratrika
(Querist) 19 March 2012
Dear All,
I take this opportunity to thank you all for putting your precious opinion in regard to the cited subject. I would be highly obliged if any body could highlight on an another point that is there any scope to revise the annual return (Form 3A)of all the affested employee for the FY 2010-11 and how an affected employee can move further to claim his legitimate dues without involving legal side first.
Look forward to your early response as always.
Thanks & regards
A. Ghosh
Guest
(Expert) 19 March 2012
Dear Asrujit,
Just keep in mind, there is always a solution. Every wrong has to be rectified in a methodical manner whenever noticed to avoid that to be treated as intentional fraud or crime. The complete methods and processes are not possible to be explained in short questions and answers session. So, you would need the help of some expert on the issue.
