I recently left a company (basically a sole proprietorship). I had joined the company after moving to the city as I had no other option to make a living back then. My salary was less than ₹15,000 per month. I wasn't provided with PF despite multiple requests, given the excuse that they would soon start providing it. Due to a lack of awareness and trust in the owner, I didn't bother as I was at least able to feed my family.

Realization of EPF Rights

Later on, I realized that EPF is my legal right and the owner was avoiding paying it. No employee was ever given payslips or appointment letters (having a salary breakdown). I do remember that we were asked to sign some agreement upon joining, which we were not allowed to read. Yes, not allowed to read. But in my case, he gave the excuse that the legal consultant is in a hurry and needs the document immediately. Just sign it as a formality, we'll give you a copy right now. Which was never given. He said, "I was your uncle's student, don't you trust me? Am I asking for your property?"

Concerns About the Signed Document

Never having seen this cruel world, I signed the document, of which I still don't know the content. I recently heard that if I'm employed on a fixed-term contract, I'm not entitled to EPF. Is it true? Was the document signed so that he could evade EPF? The company had 30 employees but I did notice that the owner had been operating using multiple companies of a similar name. For example: ABCD Services, ABCD Technology, etc.

Seeking Justice and PF Recovery

Is there anything I can do to get the PF? Will the justice system ever understand that I or somebody was coerced or tricked into signing a letter?

From India, Ahmedabad
Acknowledge(0)
Amend(0)

Coverage of PF for Employees

For coverage of PF, the status of employment, whether it is FTC, regular, permanent, or casual, does not matter. If the salary is not more than Rs 15,000, the employee should be covered. An employer cannot avoid covering an employee just on a written request from the employee that he does not require PF. Therefore, whatever you have signed (without reading) is just a paper, and that will not aid the employer to exclude you from PF.

Employer Tactics to Avoid PF Coverage

In some cases, where there are multiple organizations, the employer may purposefully restrict the number of employees in one organization to 19 so that PF will not be applicable to that organization. It may happen that out of the 35 employees, some are in one company, and others are in the other company. Obviously, both companies would have less than 20 employees and would be out of the purview of EP coverage. Though the EPF has a system to club such organizations to establish that both belong to one management, nowadays no such inspection takes place. The EPFO's website also contains a field to inform the Inspectors/Enforcement Officers of such happenings. But if you have already left that company, why should you go for that?

From India, Kannur
Acknowledge(0)
Amend(0)

Mainly because I still don't have an appointment letter from that company. I only have an experience letter and the last 3 months' payslips.

I have worked in a different company after quitting that shady company and am now working in another MNC in Karnataka. Do I need to have the appointment letter from that company? Will it be necessary in the future for any purpose?

From India, Ahmedabad
Acknowledge(0)
Amend(0)

For evidence of having worked the experience/ relieving order is more than sufficient.
From India, Kannur
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.