Env Coord (.) 28 April 2015

Eligibility for p.f.

I was employed in a manufacturing company in Navi Mumbai,Maharashtra. The company ABC Limited hired me for the post of Junior Engineer w.e.f. April,2nd,2008. The company's head-office & registered office is in Mumbai.I resigned from the company because of delay in receiving salaries,conveyance expenses & medical reimbursement.My last day at work(including 3 months notice-period) was on 31st January,2014.I served a total of 70 months in the company.The company has not yet given me 3 months salary of notice period.

However,they gave me gratuity for entire 70 month period on 1st September,2014. But when I asked them about outstanding salary & P.F. they replied that since the company is facing financial problems they are unable to give me salary.But for P.F. they replied that I'm not eligible for P.F. as they have never deducted any P.F. contributions from my salary in 70-month work period. When I perused my appointment letter,it mentions that salary shall be given subject to deductions for P.F. & medical insurance.

My Query : Even if they didn't deduct P.F. contributions of 12% from my salary despite mentioning in the appointment letter, isn't the company(Employer) liable for their share of P.F. Contributions ? Furthermore,I am planning to file a lawsuit for recovery of my outstanding salary. Can I also claim employer's contribution of P.F. ? Kindly guide if any previous lawsuit or judgement by any court on this issue can be helpful ? Even if they didn't deduct P.F. contributions from my salary,is the employer still liable for 12% of my basic salary for his contribution towards my P.F. ? My Monthly Basic Salary was Rs.50,000/- (No Dearness Allowance).
At the Rate of 12% of my Basic Salary,the Employer's (Company's) P.F. contribution comes around Rs.4,20,000/-.

Awaiting your expert advice.

Thanks & Regards,

Bikram Basu.

(Distressed ex-Employee)

Reply Follow

7 Replies

arulprasath (HR & Legal) 29 April 2015

You are eligible for EPF and you can file a suit, but subject to the cieling of Rs. 6500 taken for computation of deduction and contribution, since your ex employer did not deducted your contribuiton that their liablity for both contribution . so you can claim 6500 x 24% x 70 months.

Note: 6500 cieling upto Aug 2014, afterwards 15000.

Kumar Doab (FIN) 29 April 2015

The unpaid wages is debt on employer and your counsel may opube that you can lodge complaint u/s 406,420......and file winding up petition....... Submit final notice to good offices of appointing authority, MD.....and narrate all previous representations with brief minutes and responses....and demand to supply.......within. ....days by Redg. Post..... The employee's/Trade unions can also drill sense into the heads...

Sudhir Kumar, Advocate (Advocate) 01 May 2015

This is a case of simple PF evasion. Submit written complaint to the RPFC seeking actnon against the employer under section 7A and requesting you to be allowed to be present during the proceedings. If this does not work then com back.

Env Coord (.) 02 May 2015

@arulprasath : Kindly clarify the computation given in ur post.

How much P.F. can be claimed from my employer ?

I kindly request experts to compute my amount due from my employer based on my query question. After which I shall approach the RPFO as directed.

Sudhir Kumar, Advocate (Advocate) 02 May 2015

you submit a claim to RPFC. They know their job.

Mr Arunpraksh has advised as under

"You are eligible for EPF and you can file a suit, but subject to the cieling of Rs. 6500 taken for computation of deduction and contribution, since your ex employer did not deducted your contribuiton that their liablity for both contribution . so you can claim 6500 x 24% x 70 months.

Note: 6500 cieling upto Aug 2014, afterwards 15000."

You seem to be not appreciating the same as it is free.

T. Kalaiselvan, Advocate (Advocate) 03 May 2015

You may follow the advise of expert Mr.Sudhir Kumar. He has given a proper suggestion to be followed with tegard to PF payment. Once you are there, in the office of RPFC you will get all the issues clarified.