Employee PF Account Confusion: How Should We Handle This Unexpected UAN Revelation?

Dear All,

Good morning, greetings of the day!

Employee PF Account Issue

My company is a 6-year-old company. One of the employees joined us 4 years ago when the company was not covered by PF as we had only 7 employees. Two years ago, we became covered by PF as the company expanded. At that time, we provided all employees with a declaration form to be filled out. That employee declared that he didn't have any PF account and that his basic salary was above 15K, so the company did not open a PF account for him. Now, after 2 years, he suddenly came and said he has an active UAN number.

Please guide on what to do in this case.

Handling Employee PF Declaration Issues

You should have collected his declaration in Form 11, which states that he was not a member of EPF before joining you. If you have taken it, show him and ask him why he did not declare the PF number and UAN then.

As an employer, it is our responsibility to ensure that the new employee either has or does not have a PF account. If you had done so, you can simply ask him to pay the PF of two years, including that of the employer, together with interest and damages that may be assessed in the future. Or register him with today's date, ignoring his two years of service, and start paying PF from now. Both actions are not acceptable in the eyes of the law.

Dear Ms. Madhu,

He has already declared that he was not a member of EPF before. But now suddenly he has realized that. So what is the step we can take? Please guide.

I had already shown him his Form 11, declaring that he was not a member of EPF. However, he says it was my mistake that I didn't mention it.

Declaration in Form 11 and PF Membership

If he had given the declaration in Form 11 that he was not a PF member before joining your establishment, let him contribute for the past period plus interest and damages. How can he say that you are responsible? You can only collect a declaration, and he has declared that he was not a member of PF. Then how can you be held responsible?

Potential Issues with Incorrect Joining Date

Putting today as his date of joining will create problems in the future. He himself may create problems even though there was negligence on his part. Moreover, you should have included his name as an employee whose salary exceeds Rs 15,000 at the time of EPF coverage two years ago.

Paying Contributions from an Earlier Date

Paying the contribution from an earlier date is not an issue if the finance people are ready to allocate the required money for the employer's contribution. In that case, you should also make an agreement that interest and damages will be recovered from him, in addition to his own share of contributions.