What Happens if an Employee Falsely Declares EPF Membership on Form No. 11?

Case

If an employee joins a new organization and fills EPF Form No. 11 for declaration, and declares in the form that he was never a member of EPF before. However, in reality, for a limited period of 2 months, he was enrolled as an EPF member. Now, as per company policy, the company nominates him as a new member of the EPF.

Question

What will happen in the above-mentioned "case"?

1. Will the company be liable for any statutory compliance misconduct in the future?
2. Can the government file a statutory compliance malpractice case against the company?
3. In the future, can any statutory compliance matter be raised against the company?
4. In the future, at the time of EPF audit, can any statutory compliance matter be raised against the company?

Form-11 under EPF Act

Form-11 under the EPF Act is an employee's self-declaration where the employer has no direct involvement. If the employee was a member of the EPFO for 2 months, it is likely that a UAN number has been allotted. If the employee has settled his/her PF with the EPFO, then there is no issue. However, if the PF account still exists and the employee is shown as an excluded employee, it will be problematic under the law. If the employee is covered under the EPF, then there will be no issue.

Employer's Responsibility

Under any circumstances, the employer is not directly responsible for the employee's fault. Once the employer becomes aware that the employee was previously a member of the EPFO, it is advisable to correct the Form-11 and ensure the employee is covered under the EPF Act.