Non-Extension of PF benefits to its employees
11 months ago
Chartered Accountant Partnership Firm runs with 85 employees as on date. The Firm is registered under EPFO. However, only 10 staff members are covered under EPFO and remaining 75 staff members are not provided the PF facility. I wish to know, whether such establishment can extend PF benefit only to its selected employees? Is it not mandatory to the establishment to extend PF benefit to all its employees once the threshold limit of 20 is exceeded?
As per sub-section 3 of Sec.1 of the Employees Provident Fund amd Misc, Provision Act, 1952, every establishment employing or engaging more than 20 employees/workers are required to register their establishment under the Act and comply with the provisions of the Act. Further, as per sub-sec.5 of sec.1 of the Act, an establishment on which this Act applies shall continue to govern by this Act notwithstanding the number of persons employed therein at any time falls below 20. As per Sec.2-A of the Act, an establishment consists of different deptts or branches, all such departments or branches irrespective of its location shall be treated as parts of the same establishment where the Act applies. In the given situation, You may approach the concerned Regional PF Commissioner by filing a mass application for the coverage of the rest employees who are not enrolled yet as a member of the Scheme under the Act.
Anonymous
Replied 11 months ago
Thanks a lot Sir.
In that case, what are the repercussions to both employer and employee?
On Employers, what will be the action by EPFO. Because, more than 75 staff are not covered under EPFO. Will the EPFO Commissioner add the employees from the date of their joining? Or, will just impose a meagre fine or penalty on employer and later they will ask the employer to remit from Current month. Is there any penalty provision for non-compliance by employers? Please explain Sir.
PF benefit to be extended all the stock members who are on the rolls. You may lodge complaint with concerned authorities and also go to the High Court etc. However, it may result into your termination also. Please take wise decision.
Anonymous
Replied 11 months ago
Thanks a lot Sir.
In that case, what are the repercussions to both employer and employee?
On Employers, what will be the action by EPFO. Because, more than 75 staff are not covered under EPFO. Will the EPFO Commissioner add the employees from the date of their joining? Or, will just impose a meagre fine or penalty on employer and later they will ask the employer to remit from Current month. Is there any penalty provision for non-compliance by employers? Please explain Sir.
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