Struggling with Unpaid EPF and Salaries: How Can We Recover Our Dues from an Insolvent Company?

Issue with EPF Contributions and Pending Salaries

I worked in a public limited company (Private Ltd) where SEBI's order led to the business being banned, and SEBI recovered Rs. 1140 crore worth of assets from the company for repayment to the public. In the company's head office, all staff members left one by one without any intimation to branches. Only three staff members are currently working, and they do not respond to any queries. The company has branches across India. The Chairman of the company is remanded by another state for the same case.

Problems with EPF and Salary Deductions

The HR department provided EPF numbers after several requests. However, upon further investigation, it was discovered that EPF contributions were deducted from the salary but not deposited in EPFO for 24 months. Additionally, the KYC details were not updated in my EPF status. There are also 11 months of pending salary for me (some staff members have 2 years of pending salary).

Seeking Guidance for Recovery

When I inquired at the nearest EPF office, they mentioned that the company's HR should update the KYC and activate the UAN/EPF account for money withdrawal or transfer to a new company from the EPF account. EPFO cannot intervene in this matter.

I seek guidance on how to recover the EPF, pending salary, and gratuity amount from the company, as more than 30 staff members are in the same situation.

To recover EPF contributions, pending salary, and gratuity from a company under insolvency, employees should take the following steps:

1. Contact the company's HR department in writing, requesting the immediate deposit of the pending EPF contributions and salary dues. Include details of the unpaid amounts and the period they cover.
2. File a formal complaint with the EPFO office, providing all relevant documentation, such as salary slips, EPF statements, and any communication with the company regarding the pending amounts.
3. If the company remains unresponsive, seek legal advice to explore options for recovering the outstanding amounts through legal channels or insolvency proceedings.
4. Monitor updates on the company's insolvency process and engage with the appointed insolvency professional to claim your dues as a creditor.
5. Collaborate with other affected employees to collectively address the issue and strengthen your position in negotiations with the company or insolvency proceedings.
6. Stay informed about your rights under Indian labor laws, particularly the EPF Act, to ensure you are taking the necessary steps to recover your entitled benefits.
7. Consider reaching out to labor unions or legal aid organizations for additional support and guidance in navigating the complexities of recovering dues from an insolvent company.