Impact of PF Applicability in Dual Employment
What would be the impact of the applicability of PF in the case of dual employment if both employers are registered under the PF Act, and whether the employee would be enrolled separately with both employers?
If yes, is it possible to have two memberships in PF at the same time?
If no, how should the provisions be complied with?
Regards,
PKJain
From India, Delhi
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81What would be the impact of the applicability of PF in the case of dual employment if both employers are registered under the PF Act, and whether the employee would be enrolled separately with both employers?
If yes, is it possible to have two memberships in PF at the same time?
If no, how should the provisions be complied with?
Regards,
PKJain
From India, Delhi
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Good morning, friends. To the best of my understanding, there is no law prohibiting more than one employment in India. Second employment may be prohibited by a clause in the job contract of the first employer. If not, then it is fine to be in multiple employments. The Company Act itself permits one individual (Director) to be an MD in two companies and also allows remuneration from both companies. The salary of an MD is subject to deduction of PF as per the PF Act.
Question on Dual Roles
Can an MD in a certain company also be a CEO in another company and receive a salary from both companies? This question arose when Mr. X, employed in company A, was asked by his employer to perform some work in company B, which belongs to his relative. Mr. X was allowed to receive a salary from both companies.
Views solicited.
Regards,
PKJain
From India, Delhi
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Question on Dual Roles
Can an MD in a certain company also be a CEO in another company and receive a salary from both companies? This question arose when Mr. X, employed in company A, was asked by his employer to perform some work in company B, which belongs to his relative. Mr. X was allowed to receive a salary from both companies.
Views solicited.
Regards,
PKJain
From India, Delhi
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Mr. Suhas What would be position in case the employee concerned is not a workman? provisions of these Acts would not apply to him. PKJ
From India, Delhi
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From India, Delhi
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Today, it is very common for a person to take up jobs in two companies simultaneously. The only thing he has to do is give a declaration stating he is getting PF from the first company. If the second company's policy is okay with it, they can make a contribution for PF. However, if there is an issue with their policy, they will try to compensate with something else. PF laws don't have any problem with that. It is perfectly legal to work in multiple organizations at one time. You can get PF from two different companies at one time, as PF laws don't have any clause to the contrary.
Regards,
Anita
From India, Mumbai
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Regards,
Anita
From India, Mumbai
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Hi Pkjain, I would like to tell you that what Suhas has said is also correct, but it is meant for people working in government jobs. No government employee can have two PF accounts, as they can't take up two jobs at the same time. Hope your question is answered.
Regards, Anita
From India, Mumbai
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Regards, Anita
From India, Mumbai
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Hi, sorry to reopen this old post. My query relates to the same concern. Is there any way to remove or return PF contributions made by the second organization (9-month period)? Is there any legal way to address this situation as it was purely unintentional to work for two organizations simultaneously, but I now want to correct the mistake that has already been made. Please guide me!
From India
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From India
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(Fact Checked)-The PF contribution made by the second organization cannot be returned or removed legally. It is mandatory under the PF Act, and unintentional dual employment does not allow for withdrawal. It is crucial to adhere to the provisions despite the mistake. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-The information provided in the user reply is mostly correct. However, it's essential to note that an individual can hold multiple employments, subject to the terms of their employment contracts. The specific rules regarding PF applicability may vary based on individual circumstances. (1 Acknowledge point)