Mistaken PF Contributions to Terminated Employee: How Can This Be Resolved?

Issue with PF Contributions Due to Error

Employee was terminated in 2013, but due to a mistake, the firm submitted another employee's PF in his account for a period of 5 months in 2017. After discovering this mistake, the firm submitted a letter to the PF department, stating the error and requesting the department to transfer the amount from the wrong holder to the correct holder. However, the PF department has not taken any action to date.

Ongoing Legal Case and Request for Joint Declaration

The terminated employee currently has an ongoing case in the labor court against the firm. In 2021, he approached the firm, requesting them to sign a joint declaration form stating his last date of work as 2017 since PF contributions were made to his account during that period. He states that he will not be able to withdraw his PF unless the firm agrees to the declaration.

Steps to Resolve the Issue

In order to tackle this issue, both the employee and the firm should carefully review all relevant documents and communication related to the PF contributions made in error. It is advisable for both parties to seek legal advice to understand their rights and obligations in this matter. Open and transparent communication between the employee and the firm is crucial to reaching a mutually acceptable resolution.

Dear Colleague, it has been too long since the subject was kept under cold storage. The 2017 issue, still not resolved by the firm, needs to be looked into closely for reasons. The subject of wrong credit to someone's PF account can be sorted out by meeting the Assistant Commissioner - Accounts of the EPFO directly and sitting with him to brief the firm's documents. These corrections have to be made in the system. The excess payment should have been adjusted in the same financial year. However, you can still meet the officials, explain the situation, and apply for a remedy.

Understanding the PF Declaration Issue

Since you have not provided details, all answers will be guesswork. He has come for something; your management has to make a decision about what else it can add to the declaration so that the old case can be settled.

However, I hope you realize that once you sign the declaration, the PF money paid to the account becomes his, and you cannot get it back. Also, I do not know why he cannot get his PF without the declaration. The PF department is not bound to obey your letter.

Issue with PF Department Communication

The PF department was already given a letter by the firm in 2018, stating the mistake and asking for advice on possible corrections, to which the PF department never responded.

Employee's PF Withdrawal Query

Now the question is whether the employee can take his PF amount up to his actual date of exit (2013) from the department without any input from the firm, or should the firm get involved in any way. The employee has contacted the firm through third-party people posing as PF authorities on the phone, but upon inquiry, the PF office informed the firm that the PF department contacts every firm using email or post officially and not through telephonic means.

Please advise on how to proceed.

Implications of Signing the Joint Declaration

There is a trap in this. By giving the joint declaration, you are acknowledging that he has served you until 2017. Therefore, the termination order of 2013 would stand automatically canceled (non-est in the eyes of the law).

EPFO is not likely to return the money already deposited, especially at this late stage. Whether the employee is able to retrieve the deposited money is his problem, and you need not be concerned about it.