The company has deducted PF from May 2013 onwards, but they paid from June 2013 as they got registration with the effect from June 2013. The company says that the deducted amount will be given back to employees without employer contribution (No Employer contribution). Is this right as per the law? The company committed to PF from May 2013 in the offer letter.
From India, Thanjavur
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From India, Thanjavur
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Dear Anishkv6,
As per my views, there is no harm in paying back the deducted amount, as they are not retaining the amount after deducting it in the name of the PF Fund. Since the company received the registration later than that date, they cannot take any action on this matter. However, returning the deducted money is a positive step. Otherwise, the company could face potential trouble.
Regarding the commitment in the offer letter, if the company itself was not covered on that day, how will it cover you? Therefore, it is better for the company to reimburse the deducted amount to the employees and ensure regular compliance from the date of coverage.
Thank you.
From India, Delhi
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163As per my views, there is no harm in paying back the deducted amount, as they are not retaining the amount after deducting it in the name of the PF Fund. Since the company received the registration later than that date, they cannot take any action on this matter. However, returning the deducted money is a positive step. Otherwise, the company could face potential trouble.
Regarding the commitment in the offer letter, if the company itself was not covered on that day, how will it cover you? Therefore, it is better for the company to reimburse the deducted amount to the employees and ensure regular compliance from the date of coverage.
Thank you.
From India, Delhi
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Dear Anishkv6,
Your company is right in refunding the contribution deducted from your salary for May 2013, even though there was a commitment by your company that the PF scheme would be extended to employees from May 2013. Since your company received registration in June 2013, they cannot make remittance for May 2013, and therefore, they have no other option but to refund the amount.
It is a matter of only one month. If you wish to sue the company for false commitment and for ER share being part of CTC, you can do so. I cannot give you a different answer here.
From India, Mumbai
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Your company is right in refunding the contribution deducted from your salary for May 2013, even though there was a commitment by your company that the PF scheme would be extended to employees from May 2013. Since your company received registration in June 2013, they cannot make remittance for May 2013, and therefore, they have no other option but to refund the amount.
It is a matter of only one month. If you wish to sue the company for false commitment and for ER share being part of CTC, you can do so. I cannot give you a different answer here.
From India, Mumbai
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Dear Anishkv6,
In my view, suing your organization for the difference of only 1 month will not be a wise decision, especially when the reason was beyond the control of your employer. It will also strain your relationship with the employer.
As a good employee, you may consider advising the management to issue a letter to all such employees or post a general notice on the organization's notice board informing them about the EPF coverage date. This action could strengthen your relationship with the organization.
Now, the decision is yours.
From India, Delhi
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In my view, suing your organization for the difference of only 1 month will not be a wise decision, especially when the reason was beyond the control of your employer. It will also strain your relationship with the employer.
As a good employee, you may consider advising the management to issue a letter to all such employees or post a general notice on the organization's notice board informing them about the EPF coverage date. This action could strengthen your relationship with the organization.
Now, the decision is yours.
From India, Delhi
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Really happy and welcome all views and suggestions given for this subject. Anish must more polite and move along with the tide and this would make you more practical
From India, Chennai
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From India, Chennai
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Dear All, Thank for your timely guidance and suggestion on the issue. Organisation should communicate this to employees in a transparent way. Thanks Anish KV
From India, Thanjavur
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From India, Thanjavur
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One month not a big deal..just forgot it. If your company deducted amount more than 2-3 months and not ready to pay then I must suggest take a legal action.
From India, Pune
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From India, Pune
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Mr. Anish,
Please don't accept the money without the employer's contribution. If they mentioned in the offer letter, it means they are already in line with all the statutory compliances. Detecting EPF and not paying to EPFO is a crime; this kind of crime is the first charge in the case of Kingfisher.
So, the company has to pay you the EPF money along with the employer's contribution. If you have your payslip with deducted EPF of that respective month, you can file a labor case against the company.
Take a right decision.
From United States
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Please don't accept the money without the employer's contribution. If they mentioned in the offer letter, it means they are already in line with all the statutory compliances. Detecting EPF and not paying to EPFO is a crime; this kind of crime is the first charge in the case of Kingfisher.
So, the company has to pay you the EPF money along with the employer's contribution. If you have your payslip with deducted EPF of that respective month, you can file a labor case against the company.
Take a right decision.
From United States
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Legal Clarification on Termination for Criminal Case & PF Contribution Reduction.pdf