How Should We Handle Forgery in PF Claims and What Legal Steps Can We Take?

Handling Forgery in PF Claims

In my organization, there was an employee who was always problematic with HR and management. He resigned last year, then he himself applied for a PF claim by affixing the employer's signature on his own with a seal... it was a forgery. The forms were rejected and sent back to the company by the PF office due to the mismatch of the employer's signature (he was not able to replicate the authorized signatory's signature exactly but drew it to some extent). Only when we received the forms did we come to know that he had done the same.

He was unaware that the rejection forms were sent to the company. The second time he came to the organization to get the employer's signature on a new claim form, we caught him and informed him that unless he provides an explanation with an apology letter for the misbehavior in the first claim form, we will not process his PF any further from our side. Even then, he criticized the management and left without completing the required steps.

Now, he has applied for PF again with the signature of a gazetted officer, and we have received his claim form from the PF office instructing us to affix the employer's signature as per the EPF scheme and send it back to the RPF office within 7 days. Upon checking with the section officers in the RPF office, we were informed that we cannot refuse and must send it promptly as per the act.

Could you please advise in this case what effects will occur if the employer does not sign and send them back?

The forgery papers are still with us! If he manages to evade the PF claim in any scenario, what legal actions can the company take using the forgery papers?

Thank you!

Regards,
Raja

There is no action that can be taken as a PF claim if not authorized by the employer. He/she can get it signed and attested by any gazetted officer, magistrate, tasildar, or bank manager of the savings bank account, which can be directly sent to the Regional PF office for withdrawal.

In contrast to your point raised against "Legal Action" for forgery, alarmed in case the employer wants to get hold of the details of the concerned employee. Legal advice should be officially obtained from an advocate regarding the procedure to handle the said employee. Since the documents are proof, he is accountable to respond to such depraved action, which is not only unethical but also shows non-integrity to the employer.

As rightly said by Sharmila, no action can be taken against him. It is the right of an employee to get his PF claim settled. It is eventually his money; mind it. He might be in a hurry filing his PF claim and have forged the signatures. Though in no angle such forgery may be termed right. However, I am sorry to suggest that you sign his form and send the same back to PF authorities ASAP.

Regards

I agree with Mr. Kamal Tyagi; you have to pay him his PF dues. However, having said that, the company has to take a lot of precautions before processing his papers, though!

Any forgery can be termed a "criminal case" under the Indian Penal Code. This person, who has resigned from the company and is forging the signatures of the company official, can go to any extent of forging a salary certificate, appreciation/service letter, or even forging a company account/cheque. In fact, a lot of fraudulent cases of job promises on behalf of the company are happening on electronic media/internet these days. Hence, please insist on a written apology from him. If he refuses, please lodge an FIR with the local police!

This will bring about a strong case against the person. This is not harassment but a safeguard for the company. Do consult your legal department too; a written apology is a must, only then process the papers. Simultaneously, please inform the concerned PF Commissioner of the same, as they might not be aware of it. This person can also go to the extent of forging the signature of the PF Commissioner too. Sorry, I am just thinking wildly! This person can commit a major fraud in the new company he joins. You may even consider advertising in the leading newspapers with his photo in case he refuses to give a written apology!

Again, please take a legal opinion too. But do inform all concerned parties without fail before disbursing the PF amount! Do all your documentation right; otherwise, you would be blamed by the organization during any internal audit!

Take care,

Regards, Santosh Minz

Finally, please officially inform your Head of HR and the Managing Director and obtain their written approval before clearing his PF dues! If they do not provide written approval, please refrain from proceeding! Safeguard yourself, please!

Regards,
Santosh Minz

Legal Actions Against Ex-Employee for Forgery

No direct action is justified on your part towards an ex-employee unless there is a provision in the Certified Standing Orders/Conduct & Disciplinary Rules for the employees.

Regarding PF, you cannot withhold the PF claim of the employee for any reason. If the employer refuses to sign, the employee can have the form countersigned/attested not only by a Gazetted Officer but also by their banker.

However, you have the option to file a criminal case in a court of law for forgery of the employer's signature, nothing more. Any punishment will depend on the court's judgment.

If you are able to prove in a court of law that he signed the authorized signature of the company, you can file a police case of forgery against him.

Regards,
D. Gurumurthy
HR & IR Consultant, Hyderabad

May I know why no action was taken by the authorized signatory against the individual who forged his signature? The company is run by its managers and those who are authorized to take responsibility to avoid encountering such situations.