How to Handle Dual Employment Issues in EPF Records During a Background Check Inquiry?

I joined Company A on 26th April 2019, and then I joined Company B on 30th April 2019. I absconded from Company B after working for 15 days due to personal health reasons (I was in a condition where I did not want to continue my career). Meanwhile, I kept receiving calls from Company A to continue working. So, I returned to Company A as they had called me multiple times. Since then, I have been working at Company A, and it's been 4 years now.

Background Verification Discrepancy

Company A has now conducted another Background Verification (BGV) and found a discrepancy in the Employee Provident Fund Organization (EPFO) records. Company B has recorded an entry for 1 month and 12 days. This has raised a "Dual Employment" inquiry from Company A as I was associated with them before joining Company B.

I haven't received any salary from Company B and have not withdrawn the Provident Fund (PF) amount from them. As part of the inquiry, I have supported Company A by sharing all the documents like Form 16, Form 26AS, bank statements, and the Full and Final settlement received from Company B. However, they are still not satisfied. How can this issue be resolved now? I am willing to resign if required.

Queries

1. Current Company A is asking me to request Company B to revert the PF amount. Is this possible?

2. If I resign during the inquiry process, will that be acceptable?

3. Will I face difficulties in other companies if I disclose all this upfront after accepting an offer letter?

It is interesting that Company A, with whom you worked for only a few days, called you and insisted you join back from Company B, has now gone for a background verification. They have found that you have a PF account opened by Company B. You have clarified that you worked with Company B for 15 days after leaving Company A. Unfortunately, Company B recorded your service as one month and 12 days, but you did not receive any salary.

Then what is the issue? Why did Company A repeatedly call you to join back? Didn't they know that you had joined Company B after leaving A, and after 15 days, you had rejoined them? And all this became an issue after 4 years? Does Company A really not want you? I feel that they conducted the background verification knowing there was an issue with PF. Otherwise, the employer has nothing to do with it. Overlapping dates in PF do occur, and the employee has to resolve it. However, they know that Company B will not take the initiative to re-exit the date.

What has Company A done about the days you were not there in the company? Did they exit you on April 29, 2019, and then rejoin you on May 15th?

Madhu T K - Thank you for your reply. I never left Company 'A'. It was a bulk hiring, and they did not pay attention to the fact that I had not reported to the office for a couple of days. Later on, when they realized, they called me (I mentioned I was not well). They considered it as leave for that period. Company 'A' was not aware that I had this mishap in between. I understand I made a mistake (had very little experience then).

Okay. But you have already stated that you joined Company B but did not collect a salary for the days you worked there, right? Then they should close the verification. I don't understand why they are pursuing it.

Provident Fund Contributions

Company A has been remitting your PF since your actual/initial date of joining, correct? For a month and 12 days, Company B should have also remitted PF contributions, but in the account created by them. Is the UAN the same for both? There is no rule that an employee cannot earn a salary and PF from two companies simultaneously. Although the Factories Act states there should not be double employment, this cannot be seen as double employment by the EPFO, and EPFO cannot consider it misconduct. It is the employer who can take action, and if the employer is okay with it, I don't see the issue. Now you can merge the PF accounts. Since the contribution has already been accounted for and deposited, Company B will not take any action. There is no point in correcting the date of exit as Company A did not exit you when you left in April 2019, nor did they rejoin you in May 2019.

Background Verification Concerns

Since you have admitted what happened, the background verification should conclude, and if they are still pursuing the issue, it might be part of some other conspiracy. Can you ask them directly what they expect from the background verification, especially after 4 years? Do that.

I mentioned to Company A that I went only for a day, but I did not disclose that I visited for two weeks. It seems they are trying to pinpoint the exact days, possibly by calculating with the Full and Final (FNF) settlement I shared. Should I disclose the actual days, or let it be? My concern is that disclosing it now might have repercussions, and I'm unsure how they will react.

Naturally, there will be repercussions, and the background verification conducted now, i.e., 4 years after your joining, shows that. I think they may have identified someone who can replace you easily. That is why I have advised you to ask them very boldly what the issue is. You have committed a serious misconduct, and that will haunt you throughout your career unless you find an employer who can forgive you for it. If you believe that the current employer is kind enough to accept your submission, do it now before them, and continue with them or find another job. Disclose everything before joining and build your career then. The decision is up to you.