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anirban bhattacharjee (Service)     11 June 2016

Pf amount deducted but not deposited

Dear Experts/ Lawyers,

One of my close  friend has joined in a US based MNC in October'16 in a managerial position but not yet confirmed.But,recently she has noticed that company has not created the PF No.(UAN) yet.She was earlier with a company which didn't offer any PF  benefit so,new PF no was to be created.

However,her current company has been deducting the PF amount for last seven months but not yet deposited as there is no account assigned to her.She is now bit worried whether this company is actually depositing the PF amount deducted and contributing also from their side.She has also checked with other new joinees and they have also faced the same problem.

 

Is this a common practice of deducting PF  amount and not depositing the same or this company is involved in an unethical practice?

 

Is there any way to recover the PF amount from this type company?

 

Plz help.

 

Regards,

Anirban.....

 



Learning

 13 Replies

Kumar Doab (FIN)     11 June 2016

Download the salary slips showing deductions e.g; PF,ESIC, Group Insurance.

Obtain copy of PF,ESIC,Gratuity,forms submitted by employee(s).

Write to designated HR person for PF/ESIC,  to supply the PF number and a/c slips of all years, ESIC card, Form16.........

 

Thereafter employees may act.

Remain gentle and amiable.

It is fraud and criminal offence.

1 Like

anirban bhattacharjee (Service)     11 June 2016

Sir,

Thanks for your reply.

She has already downloaded the salary slips which shows the deduction but do not mention the PF/UAN No.

 

She has also sent a mail to HR/Pay Roll Team seeking PF No/UAN who has confirmed in writing that it has not been created and they have also not given any timeline for UAN creation and confirmed that deduction will continue to happen.

 

As per your advice it seems that she can only act after leaving the company by way of submitting PF transfer form.

 

She has not left the company but she is really disaappointed and skeptical whether the PF amount is forfeited! Because,if this company is openly doing this and do not bother to address this complaint whether they will respond if the employee leaves.

Plz advice.

Regards,

Anirban. 

 

 

Kumar Doab (FIN)     11 June 2016

You have posted that:

 

" She has also sent a mail to HR/Pay Roll Team seeking PF No/UAN who has confirmed in writing that it has not been created and they have also not given any timeline for UAN creation and confirmed that deduction will continue to happen."

 

Request to provide the acknowledgment issued by PF office towards submission of PF forms.

Request to let know the reason.

Check at: www.epfindia.gov.in 

 

If the establishment is listed in list of defaulters.

 

Try to find out from EPFO what is the matter?

 

Don't limit to PF alone.

Inquire about statutory benefits as  well.

 

 

 

 

 

anirban bhattacharjee (Service)     12 June 2016

Dear Sir,

Since PF contribution is an integral part of offer letter and since it is not maintained for her case, is it mandetory for her to serve notice period as per terms & condition of offer letter.

Because the more she will continue,more the amount will be forfeited.

Plz suggest.

Regards,

Anirban.

Kumar Doab (FIN)     12 June 2016

>>> You have posted that:

"One of my close  friend has joined in a US based MNC in October'16 in a managerial position but not yet confirmed"................................."

Since PF contribution is an integral part of offer letter and since it is not maintained for her case, is it mandetory for her to serve notice period as per terms & condition of offer letter.

Because the more she will continue,more the amount will be forfeited."

 

Why her service is not confirmed?

What is issued to her: offer letter or appointment letter? 

What is the probation period mentioned in offer letter?

Has she been supplied the rules/policies ( Service rules/conditions, HR policy etc)  mentioned in offer/appointment letter?

 

 

>>> Do not forget to request to supply the acknowledgment issued by PF office for submission of PF forms, PF a/c slips of last year, Form16 of last financial year (should have been supplied by June16), ESIC card etc.

>>>  While initiating such queries employee should post the basic information:

You may post the exact extract from appointment letter on termination/resignation. 

Did you tender notice or resignation with immediate effect?

 

Did you quote reason in notice of resignation, resignation ( e.g; Non submission of PF forms and issuance of PF number a/c slips)?

What is your designation  and nature of duties in offer/appointment letter and on record/ in practise? Did you have any power to sanction (not just recommend) leave/increment/appoint/terminate? Could anyone cancell/amend your recommendations?


You were in which state?

Does company have its office at your current location?

Does your address in company records remain the same?


What is this establishment; Commercial/Industrial (e.g; IT company) ?

Does it have Certified/Model standing orders and does it apply to your designation?

Are you a member of employees/trade unions?


What was your last drawn salary?

 

You were under probation/confirmed?

 

Do you have acknowledgment of notice of resignation and its POD, salary slip of all montsh,FnF statement,PF a/c slips of all years, ESIC acrd, Form16 of all years...............?

 

Did you tender final resignation? Did you write to appointing authority/MD etc that on dated................i.e date of submission of notice/resignation NO Tasks are epnding at her end?

 

Do you have salary slips of all months, last month,PF a/c slip of each year, Form16, FnF statement?

Has employer supplied anything to you in writng, till date?

 

What was the max. number of employees this company had any point of time?

Ritesh Maity (Labour Law Advocate)     12 June 2016

Deducting PF from the salary and NOT depositing it with the PF authority within the 21st day of the next month leads to an offence. You have to make a complaint to the PF authority in this regard.  

1 Like

anirban bhattacharjee (Service)     12 June 2016

Dear Kumar Sir,

 

Thanks for your detailed inputs.

I would be able to provide you the information what I have currently and  however I will update you further as when I collect from my friend.

Why her service is not confirmed? Saying performance is not satisfactory

What is issued to her: offer letter or appointment letter? Offer Letter

What is the probation period mentioned in offer letter?Six Months

Has she been supplied the rules/policies ( Service rules/conditions, HR policy etc)  mentioned in offer/appointment letter? There is no service book provided.

 

Did you tender notice or resignation with immediate effect?

She is planning to tender resignation with immediate release.

Did you quote reason in notice of resignation, resignation ( e.g; Non submission of PF forms and issuance of PF number a/c slips)?

She is planning to quote exactly in the resignation letter but requires opinion.

What is your designation  and nature of duties in offer/appointment letter and on record/ in practise?

Managerial position.

Did you have any power to sanction (not just recommend) leave/increment/appoint/terminate? 

No,she did not exercise.

Could anyone cancell/amend your recommendations?

Yes,her plan/activities were appoved by her senior.

 

You were in which state? Kolkata

Does company have its office at your current location? Yes,branch office.

Does your address in company records remain the same? Yes

 

What was your last drawn salary? above 50K/month

 

You were under probation/confirmed? Probation extended

Did you tender final resignation? No Did you write to appointing authority/MD etc that on dated................i.e date of submission of notice/resignation NO Tasks are epnding at her end? Handover is required as per general practice.

 

 

Do you have salary slips of all months, last month,PF a/c slip of each year, Form16, FnF statement?Salary slips for all months without PF no.Form16 not yet received

Has employer supplied anything to you in writng, till date? Probatin Extension Letter but not accepted.

What was the max. number of employees this company had any point of time? around 100 nos

Regards,

Anirban.

Kumar Doab (FIN)     12 June 2016

The employee may recieve all communications. Write her comments on copy for employer (with date) and Keep a copy.She may use a carbon if required.

It is not service book but Service rules/policies ( Service rules/conditions, HR policy etc)  mentioned in offer/appointment letter!

Does she have all perfromance record, appraisal matrix, appraisal forms duly signed by authority?

Has it been communicated in writing that her perfromance is not satisfactory?

She may write to good offices of appointing authority,MD on all poiints e.g.perfromance,extention,PF deductions, PF no. and a/c slips  Form16 etc and ask for copies of all docs as already mentioned.

What is notice period as in offer letter?

Writing to good offices and building record is a skill and if you don't have it lean on an able counsel. This is to build irrefutable written record and leave nothing to chances.

Has the PF deduction shown in salary slip?

Has any stinker, Show cause notice been issued to her?

 

 

1 Like

anirban bhattacharjee (Service)     13 June 2016

Kumar Sir,

 

Thank you once again for your inputs.

 

Plz see my replies as given below.

 

It is not service book but Service rules/policies ( Service rules/conditions, HR policy etc)  mentioned in offer/appointment letter!

General points like Compensation,Probation,Leave etc are mentioned in the offer letter.

Employee Handbook and Code of Conduct Copy was never provided.

Does she have all perfromance record, appraisal matrix, appraisal forms duly signed by authority?

Appraisal for was sent to her after 6 months of probation period is over.It is not yet signed by higher authority.

Has it been communicated in writing that her perfromance is not satisfactory?

Yes,letter metioning the extension of probation period has been issued to her.

She may write to good offices of appointing authority,MD on all poiints e.g.perfromance,extention,PF deductions, PF no. and a/c slips  Form16 etc and ask for copies of all docs as already mentioned.

She has not yet received the Form 16.She has already raised other issues with top management who has asked her to accomodate.As if it is a known practice within the organization.Infact she has not been granted any leave citing extension of probation period.

What is notice period as in offer letter?

Three Months after probation,within probation one month's written notice by the company..

Writing to good offices and building record is a skill and if you don't have it lean on an able counsel. This is to build irrefutable written record and leave nothing to chances.

Has the PF deduction shown in salary slip?

Yes.In every month's salary slips

Has any stinker, Show cause notice been issued to her?

Yes,stinker mails on her performance has been sent to her without any reason.

Since,she is in deep trauma working in this company,is it mandetory for her to serve notice or she can resign with immediate release?

How she can recover her PF amount from this company?

Can others also jointly complaint to any govt.body about this company and its wrong doings?

Regards,

Anirban.

 

Ritesh Maity (Labour Law Advocate)     13 June 2016

From I quick reading, I find that she is required to serve the notice period, if any, or to pay the notice pay in liue thereof. Regarding the PF, it is advisable to make a formal complaint before the PF authorities as it will be more effective.

Kumar Doab (FIN)     13 June 2016

The thread is unneccessarily getting streched, and is being converted to chatting.

You may post all details in one go.

You have posted that:

 

---"Appraisal for was sent to her after 6 months of probation period is over.It is not yet signed by higher authority."

What exactly does it mean?

She did self appraisal? NO one sat with her?

Did she sign the appraisal?

 

---" she has not been granted any leave citing extension of probation period."

Did she apply for leave in writing and has the copy and acknowledgment?

Was the declined in writing?

Download the declinature.

 

---"within probation one month's written notice by the company.."

Is it silent in case the separation is initiated by employee, what is the notice period?

 

---"stinker mails on her performance has been sent to her without any reason."

Has she replied to the stinker and refuted the allegations?

 

In case the employer is unworthy of being employed with , has breached the trust, is violating the rights of employee(s), violating law of the land then T&C like notice period may loose its sanctitiy.

Employee(s) can report the violations.

Authorities can take suo motu notice as well.

Apparently she has failed to fetch waiver of notice period etc for her.

 

The amount dedeucted in the name of PF can not be unsurped by employer.

 

Sudhir Kumar, Advocate (Advocate)     16 June 2016

Non deposit of PF deduction is cognizance and non bailble offence + PF evasion. A written complaint be made to RPFC
1 Like

Kumar Doab (FIN)     17 June 2016

As advised by Mr. Sudhir Kumar, lodge compalint with RPFC.

You seem to have written record on PF.

1 Like

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