thetrainer20100
CAN PROVIDENT FUND DEPARTMENT INITIATE ANY LEGAL ACTION AGAINST THE LESSOR FOR THE DEFAULT BY LESSEE FOR HIS ESTABLISHMENT/FACTORY REGISTERED AT RENTED PREMISES? UNDER WHICH SECTION ?
From India, Dehradun
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws

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Madhu.T.K
3791

The issue is not clear. I understand the situation like this: An employer having PF registration has given his establishment to someone else, the Lessee, to run the business. the latter is running it under the licence of the lessor only. In this circumstance the liability will fall on the lessor only because as per records, he is the employer and the lessee who is running the establishment in return for a percentage of profits/ income that he makes is only n agent. Please confirm if this is the situation.
From India, Kannur
thetrainer20100
SIR,

THE PROBLEM IS THAT THE PF DEPARTMENT IS THREATENING THE PERSON Mr A WHO LEASED HIS PREMISES TO MR B. Mr B REGISTERED HIS FIRM UNDER PF AND ABSCONDED WITH PF LIABILITY.

NOW THE DEPARTMENT PUTTING PRESSURE ON Mr A,

SINCE Mr A ONLY RENTED HIS PREMISES AND WAS NOWHERE LINKED WITH Mr B AND THE ESTABLISHMENT


REGARDS

From India, Dehradun
Madhu.T.K
3791

PF authorities will never 'threaten' an employer but will call on the employer who defaulted payment to pay the arrears of PF. In this case also this has happened. Never use the word threatening unless there is any personal interest to the officer concerned. Now coming to the issue, i must say that the premises where some business activity is being carried out is under your control only though you have had an arrangement with another person to run it. that arrangement is between you and the lessee and EPFO has nothing to do with it. It is also presumed that the lessee is remitting the PF under your RC only. I don't think that the EPFO will give two RCs with same address. So long as the RC is active you are the employer and you should pay it if the lessee has not paid it on your behalf.
From India, Kannur

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