How Can I Ensure My Rights After Resigning from a Company That Skipped ESI & EPF?

Dear Seniors,

I have worked with Indus Motor Co Pvt Ltd, an automobile company located in Chennai. In this company, the management is not deducting ESI & EPF for many employees, including me. I have now resigned from the service. Should I apply for any compliance regarding this through the Inspector of Factories or somehow? Whenever people come for inspection, they settle them with corruption.

Settlement and Statutory Benefits

Are there any possibilities for me to receive any settlement amount? (I have served 2.7 years there but have not been confirmed.) Will this prompt them to provide all the statutory benefits to the remaining employees?

I am attaching a document for your reference. Please help me out on this, not only for me but also for the existing employees.

Regards,
Selvam
[Phone Number Removed For Privacy Reasons]

Factory Inspectors and ESI/EPF Compliance

Factory inspectors have nothing to do with ESI or EPF. Since ESI/PF is not deducted from your salary, practically, you won't get any benefit under ESI or EPF.

Regards,
Varghese Mathew

First of all, I appreciate your interest in bringing this matter to light. Since you have documentary proof of employment, 2.7 years of experience, and details of the salary drawn, there is nothing wrong with taking up the matter with the Regional Provident Fund Commissioner (Vigilance), Royapettah, Chennai, regarding their non-compliance with PF matters for employees. It would be beneficial to lodge a complaint on plain paper together with copies of your proof. If not for you, at least your action may benefit others. If possible, you can also meet the concerned officials at the Grievance Cell and lodge your complaint. Go ahead.

Contact Information

CHENNAI,
Regional Office,
37, Royapettah High Road,
Chennai – 600014.
Phone: 044-28132700
Email: [Email Removed For Privacy Reasons]

Regards,
Kumar

You have a strong case. Please ensure that it does not affect your new job.

Role of HR and Compliance
As HR professionals, it is our responsibility to educate the management to implement all such rules. An Accounts Manager ensures compliance with tax provisions. He also finds loopholes in tax laws. Finding a loophole is different from evasion.

Some HR managers are asked to find loopholes, which is legally correct. Evasion is legally wrong.

Regards,

Dear Selvam, please move to the Labour department regarding non-compliance and also submit a document to the PF department. They will manage the entire workforce along with you.

Thank you,

Regards,
GK
[Phone Number Removed For Privacy Reasons]

I really appreciate your concern. I have just started my career in HR. Even the companies in Hyderabad, which are in the automobile industry (Service), are not following any statutory policies. I am sharing my experience below:

Interview Experience in Hyderabad

I attended an interview in Hyderabad for an HR executive position. The senior HR mentioned that they would not issue any letters for employees or workers, and they also do not create bank accounts for salary credit. They believe that both practices could be used as tools by employees to lodge complaints for not receiving the minimum wage as per the Minimum Wage Act. It's disheartening to see how people exploit human resources for their own profits.

I urge you to file a complaint by attaching proofs such as appointment letters, payslips, or account credentials if they were created.

Thanks and regards,
Anil
Hyderabad

I agree with the views of our HR fraternity. Please make a complaint against such an organization with the evidence you have on hand, but at the same time, take care that it should not affect your career prospects.

Regards,
B. Dakshina Murty

Dear Friends/Seniors, I am still helpless. I have been pursuing this complaint since July '13, yet there has been no proper response from the EPF office in Ambathur, Chennai. I am unable to follow up frequently as I have shifted to Madurai.

Nevertheless, I am determined not to give up. I have been following up through phone calls, but the enforcement officer, Mr. Manikandan, is irresponsible. I have even met with the PF Commissioner, Mr. Mishra, but it seems everyone is similar in their approach.

Please advise me.

Regards,
Selvam
[Phone Number Removed For Privacy Reasons]