Navigating EPF Compliance for International Workers: What Happens When Nationality is Misreported?

ramesh_vpos
Dear experts,

We have a query regarding EPF IW worker return and other compliances.

Background Information

One Japanese citizen joined a Japanese company in 2018. (The company is registered in ROC India). In the early stages, HR did not inform the consultant about his nationality and enrolled him in EPF as a local staff, Aadhaar-based, as he had Aadhaar and PAN. They followed restricted EPF contributions of 1800. Now, the concerned employee has left the company and joined another Japanese company. They are selecting his nationality as "Japanese" as it is mandatory nowadays.

Employment Details

The employee was not seconded from Japan's headquarters of the company. He was hired as a local staff, not an expat, and no payments were made to him from Japan like other expats who are seconded from Japan.

Request for Advice

Kindly advise if the earlier practice was correct and what issues the employee may face if he selects Japanese in the new company. No additional information is available about the new company.
sekark_7711
Dual Citizenship and Social Security Implications

If the employee has an Aadhaar and PAN card in India, he seems to be an Indian citizen, and maybe one of his parents (father/mother) is from Japan. So, he might have dual citizenship. In this case, the Non-Resident Social Security Act belongs to the respective nations where he belongs to, and the applicable law will be applied in this case.

The transfer of UAN may not be possible in this scenario. I hope I am right, and experts on the statutory side may clarify further.
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