Multiple company Crediting money in UAN - PF ( Is it legal ? )

Hey Folks,

Just encountered one incident with friend, His previous organization has credited the PF amount through three different companies without any information neither verbal nor written. When the clarification is asked for this they informed that they have outsource the PF to different companies that`s why their entries are coming. Now this issue is arising during the Background check as there are three different organization has credited the amount which is reflecting in UAN.
Kindly suggest

It is not the outsourcing of PF rather it is outsourcing of the employees. The employee is not in the pay roll of the PE. He/she is under the pay roll of different 3rd party. There are PEs who are changing outsourced agent/3rd party for different reasons.

Until the employee under the pay roll of any organization, PF cannot be deposited in that PF Code. In the instant case there are 3 different outsourced agent through which the employee has been engaged for jobs was not known to employee.

S K Bandyopadhyay ( Howrah, WB)
CEO-USD HR Solutions
+91 98310 81531
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this is not legal, at one time dule employment not permissible As per factory Act 1948, also when u going to transfer as well as final settlement PF department will reject your claim and ask for clarification/declaration etc.

Hi S K Bandyopadhyay,

Got your point, But here the situation is , he got the Offer and relieving letter from ABC Company and while working with ABC company , He got credits in PF( UAN) through three different XYZ Companies.

ABC clarified that they have only outsourced the PF division to XYZ companies to complete their compliances.

Is it legal in India ?

Now how can someone justify UAN transactions this to Background verification team ?

Hi Prem chanda yadav,

Agree with your point, But here situation is different, He has not done any dual employments.

Let me elaborate it .

Suppose i join ABC company in Sep 2017 and left it May 2018. Later while checking my UAN Activities i found that form Sep 17 to Oct 17 my PF got credited through DEF Company
From Nov 17 to Mar 18 my PF got credited through GHI Company
From Apr 18 to May 18 my got credited through JKL Company.

In this case what i should now.

Note :- I am not having any document of DEF, GHI, JKL also i have not worked there. I worked under ABC payroll and have offer and reliving's of ABC only .

You can approach ABC company for,
If you have ABC company complete tenure documents, ask ABC Company for these company NAME on your experience letter as mention that you were on ABC company payroll with different site like DEF Company/GHI Company/JKL Company. which will support for your career but for consideration part it may not be good.

Dear Ankur-Dagar,

For depositing PF contribution it is essential to have one PF Code. It is possible to outsourced PF related matter to any outsourced agent. But if PE has own code, the deposition will be in that code only not in the code of outsourced agent. Until someone in the payroll of any organization, it is not possible to deposit PF contribution.

Therefore, my conclusion is probably the PE has no PF Code and PE has outsourced the employee through 3rd party. Again there are 3 different 3rd party during the tenure of employee's service period. It may be for avoiding gratuity by changing 3rd party as employer or may be some commission is expected by PE's officials (very common in India ) and at the same time the HR team of PE is incompetent/ non professional to handle the situation that is why they are issuing offer and relieving letter. This is absolutely illegal.

In BGV the truth should bring on the table. But I agree it is a problem for the employee.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
[Login to view]
USD HR Solutions – To Strive towards excellence with effort and integrity