After Nine Years Of Work - No PF And Other Benifits!! WHAT CAN BE DONE NOW? - CiteHR
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Dear All
My friend had worked for a college from July 2002 to July 2011 and PF was not deducted from the salary, his starting salary was 6550 and while resigning it was 35000. during the period he asked the management for PF and they have replied it is not available on that particular year, but other people was given, It was his ignorance he did not followed it up. Now when he resigns they have told no benefits and deducted salary for the leaves in credit for the last month (July 2011).
He has done lots of projects during his tenure as faculty and was given top administrative positions in the college.
What are the benefits he can expect from the employer? Like PF, Gratuity and other. What will be the total monitory benefits he can claim now? The company have more than 150 employees on roll.
Regards
Anand

Sub- After vnine years of work-no P.F
The P.F.Act will be appicable to an educational institution by virtue of a central government notification and an employee whose wages is upto Rs.6500/-p.m at the time of joining, is only covered. In your case your friend is drawing Rs.6550/p.m. Thus technically, he appears to have been excluded from the coverage of P.F under the Act. However this not the end and he can still be covered under the Act depending up on what constitutes the componenets of his salary. If the college got exemption from P.F Act and has his it's own trust, then his claim needs to be examined within the frame work the P.F rules of the college.
B.Saikumar
HR& Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd
Mumbai.

Thank you Mr. Saikumar He got an appointment order with 6500 salary and later they stared depositing 6550 in the account. And what about the gratuvity? Anand
I'm attaching one of the salary slip issued to him for your reference.
Salary for the Month : August/2010
No. of days paid for : 31/31
Disbursement Mode : Bank
PAYMENTS

Gross Salary (Rs.)

Earnings of the Month (Rs.)
BASIC
12840

12840
DA
6420

6420
HRA
1926

1926
HOD ALLOWANCE
1000

1000
OFFICIATING ALLOWANCE
0

0
ALLOWANCE
4014

4014
MISCELLANEOUS ALLOWANCE
0

0
Total
26200

26200
DEDUCTIONS
Provident Fund
0
Professional Tax
200
Insurance
10
HRD
0
LIC
0
TDS
0
Miscellaneous
0
TTBS
642
KLWF
0
Advance
0
Total
852
GROSS SALARY : Rs.
26200
NET SALARY : Rs.
25348
* This is a system generated Payslip, which does not require signature and seal.
** If you find any discrepancy or error, please bring it to the notice of Accounts Dept.

Dear Mr.Anand,
I have some different point of views on this.
1.From the day 1st EPF act is applicable to an employee.
2.Before defining excluded employee plz check whether other employees in the institue drawing salary more than Rs.6500/- were covered under PF act. If yes, you can approach RPFC for filing a complaint.
3.plz check whether one month notice or notice pay is given to him.(refer his appointment letter)
4.In case he has rendered continuous service (completed/worked 240 days every year) more than 5 years he is eligible for gratauity i.e.15 days for every completed years of service.
5.In case if earned leave/PL is balance in his account which is not availed by him, he can demand encashment of those leave.
I hope i have given you relevant input.
Thanks
Amar

Dear Amar and Sasikumar Thank you for the answer.
Amar, regarding your point no. 4 he has been transferred in 2006 to higher post to the sister concern and again transferred back to the main college in 2009 with another promotion. In this case both the colleges are under different trust but the same chairman. His latest ID card bearing the Joining date as July 2002. In this case whether he is eligible for Gratuity. And the concern never had a history of unaviled PL encashment. The institution has employees who are under PF coverage whose salary is more than 6500.
Thank you
Anand

Sub-Payment of gratuity

I assume that your friend has completed nine years of service together in the main college and it's siter concern.He joined the main college in July 2002 and was transferred to it's siter concern in 2006 and thus he did not complete five years or even 4 years 8 months in the main college as Mr.Amar explained and thereafter, he was retransferred to main college in 2009 thus he could not complete five years in the sister concern even.

Therefore your doubt is whether your friend is eligible for gartuity since he did not complete five years in any istitution.

I gather from the brief details , furnished by you that both colleges have seperate Trusts but headed by the same Chairman.Here the issue is whether the service in a sister concern can be clubbed with that in the parent concern. In the instant case, both the institutions, though located at different premises and have different Trusts but the ownership and mangement is common for both the institutions as evidenced by the Common Chairman for both of them.Thus going by the case law on this issue and the principles of functional integrality and also having regard to the welfare nature of the Gratuity Act, in my opinion, your friend is entitled to gratuity.

If your friend is a teacher/lecturer, the Gratuity Act was not earlier applicable to teachrs and their gratuity needs to be computed as per the Gratuity Rules of the College. please verify this aspect.

For any furthur clarifications, you can rever to me.

B.Saikumar

HR & Labour Law consultant

Chipinbiz Consultancy Pvt.Ltd

Mumbai

Tel-022-28324234

Dear Sir
After he intimated the college that he got appointment order as Lab Instructor on 2002 with payment 6500 and the PF was not given, but the college is telling that, during 2002 the PF cutoff was not 6500 it was 5000, so it was not a compulsion to give PF, is this a valid point. And they have started a scheme for teachers in 2004 and started deducting some money towards the teacher terminal benift fund and all staff agreed with a reimbursement after service (5 yrs and above) the money will be computer while resigning and including the interest will be paid to the person. Now they are telling there is no interest will be calculated for the same, what is your opinion regarding the same.
Regards
Anand

Dear Sir
After he intimated the college that he got appointment order as Lab Instructor on 2002 with payment 6500 and the PF was not given, but the college is telling that, during 2002 the PF cutoff was not 6500 it was 5000, so it was not a compulsion to give PF, is this a valid point. And they have started a scheme for teachers in 2004 and started deducting some money towards the teacher terminal benift fund and all staff agreed with a reimbursement after service (5 yrs and above) the money will be computed while resigning and including the interest will be paid to the person. Now they are telling there is no interest will be calculated for the same, what is your opinion regarding the same.
Regards
Anand

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