How Can Principal Employers Ensure Contractors Settle PF Claims for Laborers?

A contractor finishes work/contract and clears wages, full and final of his laborers. But later, it's found that the contractor has not settled PF claims of his laborers, and those laborers are urging the principal employer to look into that. The contractor has his own PF code, and while checking, it is found that contributions have been deposited by the contractor but he is reluctant in settling the PF claims.

Steps for Principal Employer to Ensure PF Claim Settlement

What can the principal employer do in such a case to ensure claim settlement by the contractor (apart from persuasion and holding the final bill)?

Regards,
DG

Urgent Advice Needed on PF Claims Settlement

In reference to the above post, some advice is solicited urgently.

Regards,
DG

I would like to suggest two points:

1. If the employees are currently working in another company, ask them to transfer their PF account into a new PF account number under the UAN option.

2. Obtain a letter from one of the ex-employees of the contractor. Based on his letter, send an email to the concerned contractor for a reply and try to resolve the issue.

If you need to resolve the issue, you must act smartly as there is no other option.

Regards

Thanks, but for a contractor who has a PF code in his name, and his workmen are covered under his code, what would be the liability of the principal employer in such a case, especially in issues like PF claim settlement?

Regards,
DG

In the future, if any notice is issued by the EO of the EPFO regarding this matter, the principal employer will also have to provide an explanation if these issues are brought to the attention of the PF authorities by former employees of your contractors.

If any employee submits their grievance through a letter to the respective authority (mentioning the principal employer's name), your company will also need to provide an explanation to the concerned authority regarding this matter.

Please ensure to address these issues promptly.

Thank you.