Hi,
During one of the training programmes on Contract labour, their coverage under different labour enactments, I was surprised, when one of the participants stated that some of the contractors maintain a separate list of persons for coverage under the EPF Act. This list contains names which are entirely different than those who are actually working in the company. These persons are generally the family members of the contractor and his other kith and kin.
The contractor deducts the provident fund contribution from the actual employees but the same is credited along with the matching contribution of the contractor, in the different accounts. This way the contractor, manages to keep the provident fund within the family and the benefeciaries get the amount without making any contribution.
I was surprised to hear this and thought I will share it with others, just in case they have heard of such a malpractice.
This calls for a thorough scrutiny of the records and checking it with those who are actually deployed on work.
I will be happy to receive your comments on this
Cyril
During one of the training programmes on Contract labour, their coverage under different labour enactments, I was surprised, when one of the participants stated that some of the contractors maintain a separate list of persons for coverage under the EPF Act. This list contains names which are entirely different than those who are actually working in the company. These persons are generally the family members of the contractor and his other kith and kin.
The contractor deducts the provident fund contribution from the actual employees but the same is credited along with the matching contribution of the contractor, in the different accounts. This way the contractor, manages to keep the provident fund within the family and the benefeciaries get the amount without making any contribution.
I was surprised to hear this and thought I will share it with others, just in case they have heard of such a malpractice.
This calls for a thorough scrutiny of the records and checking it with those who are actually deployed on work.
I will be happy to receive your comments on this
Cyril