My previous employer has not remitted pf
KISHORE KUMAR
(Querist) 05 November 2013
This query is : Resolved
Dear Experts,
I got relived from my previous co. in 2011 Jul (A pvt ltd software co based in Cochin) after a service of 4 years. Soon after leaving the co, I had put up my PF withdrawal form thru the company and the application was rejected by PF authority saying that employer has not remitted the PF. I contacted the co, and they said, there was some interest to be paid and they have now made the payment. They again put up the application and it got rejected again Later on I contacted my previous employer and they asked me to wait for some more months as there is actually some payment defaulted by co. I waited for few more months again they said the payments have been completely made but there is some mismatch in the Returns so PF dept is not ready to accept the applications. At last they said everything has been sorted out and i will get my payment by 31 Oct 2013 maximum. But I havent got the payment so far and I tried to contact the co. several times within the last two weeks but they are not attending the calls. I have been struggling for this payment since two yrs. What can I do further? Can I file a case against them for grievance? If so under which law? experts could u please advice.
ajay sethi
(Expert) 05 November 2013
what is the total outstanding amount ? if company has deducted Pf it is bound to deposit the same . if company has defaulted in payment of dues it is duty of Regional Provident Fund Commissioner to take action against company .
in such a ccaser you can file complaint with consumer forum against the company and Regional provident fund commissioner to recover your dues and claim compensation
ajay sethi
(Expert) 05 November 2013
Provident Fund commissioner's duty to settle dues
Rebecca Samervel, TNN Jun 18, 2013, 04.05AM IST
MUMBAI: The Regional Provident Fund Commissioner should take action against any company that has not deposited the dues of a beneficiary and try to recover the money, the state consumer disputes redress commission has said.
The regional PF commissioner's office, absolving itself of any responsibility, had blamed Swan Mills for non-payment of dues to a senior citizen fighting for his money since 2005
The commissioner and Swan Mills have been directed to pay Mulchand Shah Rs 1.52 lakh within four months along with a compensation of around Rs 95,000 by the Maharashtra State Consumer Disputes Redressal Commission.
The panel, upholding a district forum's order citing the Employees' Provident Funds & Miscellaneous Provisions Act, said it was the commissioner's duty to administer the provident fund in respect to each and every employee to whom the Act is made applicable. "Merely issuing an order (to deposit the dues) did not solve the problem of the complainant, who is the ultimate beneficiary under the scheme," it added.
In his complaint, Mulchand Shah had said he worked for Swan Mills from 1963 to 1998. A couple of years later, he filed a claim for his provident fund and on June 1, 2005, received a cheque for Rs 1.48 lakh from the regional PF commissioner's office. It was only a part of the money due to him. So, he filed a claim again, saying he was entitled to another Rs 1.52 lakh. He knocked on the doors of various authorities but did not get any relief.
Aggrieved, he filed a consumer complaint before a district forum on June 23, 2009. In June 2011, the forum directed the regional PF commissioner and the company to pay Rs 1.52 lakh and a compensation of around Rs 95,000.
Soon after, the regional PF commissioner's office filed an appeal in the state commission. It challenged the order on the grounds that the company had failed to deposit the provident fund contribution for Shah and hence, the entire due claimed by him could not be paid. It claimed that the company was guilty of deficiency of service, and the commissioner's office was not responsible and liable to comply with the district forum's order.
The state commission upheld the observations of the district forum. It held that the forum had rightly observed that according to the provisions of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952, it was the commissioner's duty to administer the management of provident fund in respect to each and every employee to whom the Act is applicable. It added that when the commissioner failed to receive the contribution from the company, he could have taken action under the provisions of the Act and proceeded to recover the money.
KISHORE KUMAR
(Querist) 05 November 2013
Thanks Ajay Sir for your quick and detailed response. The company has deducted from my salary around 50k and my PF balance shows around 85k. I came to know that the PF enforcement has intervened in the PF remittance default action done by the co. The co. HR manager has informed me that now everything has been settled but still they havent submitted our applications or responding to us. Since the PF enforcement has already looked into it, can I still approach the commissioner?
Sudhir Kumar, Advocate
(Expert) 05 November 2013
if the company has made evasion then you have to make a formal and written complaint to RPFC for initiation of action under section 7A and requesting you to be allowed in proceedings.
Raj Kumar Makkad
(Expert) 05 November 2013
Well advised by experts so no more to add.
Kumar Doab
(Expert) 05 November 2013
You are unnecessarily wasting your hard earned monies on phone calls.
Now narrate all representations made by you so far (quote phone numbers-yours and of HR) dates, names, designation, name of company, address) and conclude that company has not supplied you the original acknowledgment issued for you by concerned PF office and that the same be issued at once by redg. post only so as to reach you in say next 7 days and the reason for non receipt of your funds in your PF a/c in writing by letter thr redg. post. You may add that if company demands in writing you are willing to supply postage prepaid self addressed envelope for sending the redg. post to you.
If the company does not reply then you may visit in person the RPFC in nearest PF office to you and forward your complaint thru him (obtain acknowledgment with diary number and seal and signature and date on your copy)……………………….Later you can pursue even by RTI route and this shall make them act and work.
The HR has not concealed from you the default by the company. The EPFO would have included the name of the company in the list of defaulters maintained by it on its website.
After the matter is reconciled and all dues are paid by the company you may demand to know whether full interest has been paid in you’re a/c on amounts collected from your wages and equivalent contribution by employer ( from date it should have been deposited in your PF a/c) or from date of its actual realization by EPFO and accordingly claim that employer should make good for your loss…………………
The company must not get away by paying the penalties to EPFO only and saving the amounts from loss caused to employees.
IN other words company might have paid some amounts to EPFO but saved by not paying legitimate amounts to employees.
KISHORE KUMAR
(Querist) 06 November 2013
Dear Experts,
Thanks a lot for your detailed advice.I will proceed with the actions suggested..
Regards,
Kishore
