HI,
I am operating our warehouse through C&F. Every month they are charging us employers share of PF and we are paying to them. But i came to know the employees are not getting the PF amount even after leaving one year ago and the service provider is not replying properly to or queries. my question is which are the measures to be taken to ensure agency is remitting PF to the authority (they are showing us some challans but it is not having employee details so it can be for any of there other concerns) and if there is any legal problems for me if the service provider not remitting PF. what laegal actions I can take against them?
thans & regards
From India, Mumbai
I am operating our warehouse through C&F. Every month they are charging us employers share of PF and we are paying to them. But i came to know the employees are not getting the PF amount even after leaving one year ago and the service provider is not replying properly to or queries. my question is which are the measures to be taken to ensure agency is remitting PF to the authority (they are showing us some challans but it is not having employee details so it can be for any of there other concerns) and if there is any legal problems for me if the service provider not remitting PF. what laegal actions I can take against them?
thans & regards
From India, Mumbai
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Dear Shoji ,
As per your query if ur contractor is not remitting the PF Amount to the Pf Department then that would be the Responsibality of the priniciple employer who come into the picture .
Every priniciple employer is responsible to have a monthly check on the contractor on various ststutory compliance i.e PF,ESIC,PT,MLWF ,CLRA License Validity,Maintaining Register under the Act
Now straight to the point if ur contractor is showing you PF Challan & ur not satisfied with the challan ask him to show the Previous PF Return's of 3a & 6a which shold be filed in PF Office ,where in 3a you will have each employee individual PS A/c nor with the contactor PF Establishment code & accumulated amount for that financial year .
Stop the payment to the contractor with prior intimation stating him to make 100% complaince for various statutory & conduct Statutory Audit so that the picture would be clear & ur Emplyees would be satisfied.
Lastly still if you feel you need any help ,kindly contact the undersigned for further queries.
Regard's
Ravikumar.S
9892028625
From India, Mumbai
2As per your query if ur contractor is not remitting the PF Amount to the Pf Department then that would be the Responsibality of the priniciple employer who come into the picture .
Every priniciple employer is responsible to have a monthly check on the contractor on various ststutory compliance i.e PF,ESIC,PT,MLWF ,CLRA License Validity,Maintaining Register under the Act
Now straight to the point if ur contractor is showing you PF Challan & ur not satisfied with the challan ask him to show the Previous PF Return's of 3a & 6a which shold be filed in PF Office ,where in 3a you will have each employee individual PS A/c nor with the contactor PF Establishment code & accumulated amount for that financial year .
Stop the payment to the contractor with prior intimation stating him to make 100% complaince for various statutory & conduct Statutory Audit so that the picture would be clear & ur Emplyees would be satisfied.
Lastly still if you feel you need any help ,kindly contact the undersigned for further queries.
Regard's
Ravikumar.S
9892028625
From India, Mumbai
Hi,
You can assure urself as Ravi said by asking for Form 3A, 6A and you can also ask him for the yearly PF Slip which is issued by the deptt.
You can also take a DECLARATION on this letter head on monthly basis stating that he has been remitting the pf of so and so employees in their so and so PF A/c. By that on some extent, you would be able to safeguard urself and along with will be able to maintain so pressure upon him.
regards
mukesh mehta
From India, Mumbai
You can assure urself as Ravi said by asking for Form 3A, 6A and you can also ask him for the yearly PF Slip which is issued by the deptt.
You can also take a DECLARATION on this letter head on monthly basis stating that he has been remitting the pf of so and so employees in their so and so PF A/c. By that on some extent, you would be able to safeguard urself and along with will be able to maintain so pressure upon him.
regards
mukesh mehta
From India, Mumbai
All these suggestions are not foolproof. In a recent Judgement deld. by the Hon'ble High Court of Delhi. that binds the Principal Employer only to deposit the contributions on account of the Contract Labour also in view of the PF Scheme.
Even if the Contractor is having separate or independent code No the contributions are payble only by the Principal Employer.
However the best suggestion is 1) Ensure the disbursement of wages in the presence of Principal Employer as stipulated under the CL(R&A)Act 1970.
2) Deposit the Contributions by the Principal Employer,
3) Ensure the submission of the Monthly & yly returns by the Contractor regularly,
4) the monthly payment should be ensured only after these formalities are ensured.
From India, Jaipur
Even if the Contractor is having separate or independent code No the contributions are payble only by the Principal Employer.
However the best suggestion is 1) Ensure the disbursement of wages in the presence of Principal Employer as stipulated under the CL(R&A)Act 1970.
2) Deposit the Contributions by the Principal Employer,
3) Ensure the submission of the Monthly & yly returns by the Contractor regularly,
4) the monthly payment should be ensured only after these formalities are ensured.
From India, Jaipur
Dear Sir, Let me add few more suggestions put forth by Sh S.K.Bhargava, as follows-
Principal employer may ask for the names and the P.F. account numbers OF THE EMPLOEES POSTED BY THE CONTRACTOR, and ask for copies of bank challans, with-hold some security amount till not satisfied, intimate the name and code number of contractor to RPFC , ask for copy of EO,S inspection report if any,copy of P.F slips issued by the RPFC AT THE END OF EACH YEAR,etc. etc in addition to view points of other contributors in this matter.
with regards,
Chandok,
ex RPFC
From India, Chandigarh
Principal employer may ask for the names and the P.F. account numbers OF THE EMPLOEES POSTED BY THE CONTRACTOR, and ask for copies of bank challans, with-hold some security amount till not satisfied, intimate the name and code number of contractor to RPFC , ask for copy of EO,S inspection report if any,copy of P.F slips issued by the RPFC AT THE END OF EACH YEAR,etc. etc in addition to view points of other contributors in this matter.
with regards,
Chandok,
ex RPFC
From India, Chandigarh
PE Not responsible for Contractor's PF Dues-Labourlawr eporter.com.doc
HC All - Trainees not covered for PF -2010.pdf