YJ (NONE) 08 June 2022

Company not member of epfo

Hello Experts,

I joined a company that is operating since 7 years with over 200 employees. Compnay is not deducting any PF and not a member of EPFO organization. Now the company is purchased by new foriegn company and new company is trying to provide PF facility to all employees. Considering, Indian legal entity operating with 200 employees not a member of EPFO since 7 years what will be implications?

Any legal issues because company is not eligible for exemption considering salary and no of employees?

Please suggest.

Reply Follow

Quick Summary

A company operating for seven years with over 200 employees has not been deducting PF or registered with the EPFO. Now under new foreign ownership, they aim to provide PF facilities. This raises questions about past legal implications, as EPFO membership is mandatory for employers with 20+ staff. The EPFO has the power to recover contributions for all employees from the date the company exceeded 20 employees.

2 Replies

Mahi Manchanda 25 June 2022

Hi,

It is mandatory for an employer with an organization that employs 20 people or more to register under the EPF scheme. The PF will start from the date the accounts were created instead of since date joined.

There could be a proceeding against the employers.

I hope this answers your question.

Have a good day!