Hr Consultant
Educator, Management Consultant & Trainer
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Hi revered seniors,

We are an organization registered under EPF and HO is in Kolkata and Corporate Office is in Guwahati.

On 9th January an employee joins our organization @ gross salary 60K per month and then left on 24th January evening after submitting a resignation with immediate effect which we have accepted.

During this period of time his BGC was going on so couldn't give him appointment letter which has a clause of leaving without serving notice period.

So technically since he was not given the appointment letter we can not ask for one month salary in lieu off from him. So we are yet not sure whether we will ask him to pay us back or we will pay him his dues for working with us for 16 days. This will be decided by our Group Head who is in Chicago now and it will take some time. The employee has also told us that he's OK in both these cases, if we ask he will pay and if we give him his dues then nothing like it. So he's cooperating.

Now my question is, if we decide that he has to pay us one month of his basic salary for leaving, do we still need to create/link his UAN for PF and what will we show in ECR while uploading it since we will not give him any salary in that case and there is no question of deducting EPF from his salary and depositing it since he's paying us back? Do we still need to deposit the employer contribution if the employee owes us money? In that case how to creat the ECR? Or, we don't need to link/create UAN at all since he owes us money and we are not paying him anything.

And if we pay him which we will decide post 8th next month (Once the Group Head is back) we will process it only on 28th February, can we deduct and deposit the PF on March then?

It would be of great help if somebody from this community helps me out as I'm very new to my job as well as in this profile.

Thanks in advance.
26th January 2017 From India, Kolkata
If employee pays back then there is no point of deducting/paying PF. You don't need to link/generate uan if the employee is paying. If the employer is paying then you must calculate it and pay it. Paying dues as full and final doesn't affect epf rules. You should deduct and pay the epf dues on or before 15th March but if you pay on March I don't think that would be a problem. You can do that.
But take suggestions from the veterans of this community.
26th January 2017 From India, Kolkata
So I can upload the ecr in March instead of February if we decide to pay him right? And if he pays then no UAN generation/linking is required right>?
26th January 2017 From India, Kolkata
60 k salary ....................and you are bothered about EPF UAN generation? leave it, without UAN, as over 15k exemption can be availed
as he has already left the service, you need loads of records and data to generate UAN and pay contribution, and it should be done by 15th february or earlier, if the employer want to make his uan and pay
January month's contribution can not be paid with feb contributions
27th January 2017
Over 15K it's exempted? But he had submitted form 11. Is there any problem that we can face in future if we don't deduct the pf in this case?
And if at all we have to deduct and pay can't we pay it in March with may be some fine? I don't know in detail, but I have heard that there is a provision for that certainly with some fine.
Please confirm. In that case we won't go with deducting pf at all.
27th January 2017 From India, Kolkata
And most importantly he was earlier a member of EPF scheme. So aren’t we supposed to deduct and pay him the pf amount? We also have to link it with his uan. But can we do it in March?
27th January 2017 From India, Kolkata
IF form 11 is submitted , then employer had to link his previous UAN immediately after joining, with all data required as per the portal, such as bank details, aadhaar details , pan details and mobile, (balance data is generated from his old a/c and can not be altered
do it right now, and file return of january payable in feb within due date
you can make exit of employee immediately after the ECR generation and finalize the challan
27th January 2017
Sir, as I have told you I had talked to higher management but they said wait until 8th Feb and then they will take their own sweet time to finalize it. We'll not able to do it before March. Probably we have to pay some fine for that.
27th January 2017 From India, Kolkata
return filing date is upto 15th february, for salary of january, and from 8th feb to 15th feb there is plenty of time
seems that for just a minor issue, management is going to withheld the whole employee's EPFO return pending for their own choice
27th January 2017
Samir, you are forgetting one thing.
Forget about fine, you have to give it anyway. But suppose the employee joins an organization in Feb and gets his uan linked there. Then when you'll link your establishment id with the same uan in March in order to contribute in EPF his the then present employment will get de linked. And in that case how do you justify that?
27th January 2017 From India, Bengaluru
Payroll point of view:-
If an employee works even for one day, the employer is liable to pay the salary/earnings and the PF has to be deducted from the earnings. Deductions including notice period recovery should be calculated separately.
The best way is Calculate the January Salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as deduction (whatever decided by your management) and add the previously hold salary. You will receive a minus figure as settlement (recovery). Recover it and close the account.
This is the proper way of accounting a Payroll and also statutory compliance.
27th January 2017 From India, Chennai
Dear Samir,

I want to ask and suggest my view points as below:

1- People join and leave organizations their way is a normal routine thing. People join based on potential/intellectual assets and at same time they bring in some deficiency aiming to make up at new organization. You have not issued appointment letter and before this candidate resigned , does not permit any scope to create / act anything wrong, mischievous and damaging .You should have done your work with integrity and honesty towards company and candidate both.Don't you think that this is dishonest act you want to play as a game which was not permitted neither earlier nor never ever. I fail to understand, why are you thinking about it even ? Who will gain or who is at loss and why you are attempting to jump way from limits of professionalism !!. The problem solving approach here is not only incorrect but its objectionable also on moral and legal grounds both . As against the proposed demand of notice pay , the gentleman is accepting your punishment also. So here is scope and opportunity available to you to correct action..Treat it a normal issue without any intention in mind to harm employee for none of any faults from his side. I doubt, you will earn any credit/respect from superior if he believes in fair and firm formula.

2- Since his Gross salary is Rs.60,000/ month. Please do not make him PF / EPS member . Design his PFable salary in such manner that it becomes more than Rs. 15,000/ and he goes away happily and you stand done and complied with in right manner. There is good scope available to you to exempt from PF coverage .Form 11 is not required and he will be thus in list of exempted members .

Thanks and best regards,

RDS Yadav
27th January 2017 From India, Delhi
Dear Seniors,
I have a query with regards to this topic. I have heard that in order to establish an employee employer relation, an appointment letter must be issued and accepted by the employer and employee.Since the appointment letter was not issued is there any legal requirement for the employer to pay the salary and also they do they have any legal right to ask for recovery.
27th January 2017 From India, Mumbai
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