Dual employment issue Dual employment issue

2 months ago

I was working with Company A for a period of 3 months and in that time i received a offer and i accepted unknowingly and i resigned in company B without taking any salary in less than a month and i was with company A only till 2 years and after that I got anoffer so i relievied from company A But due to one month pfoverlap new company rejected my offer how to overcome the problem.please explain

Anik

Responded 2 months ago

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A.Dear Client,

The Factories Act, 1948, and the Industrial Employment (Standing Order) Rules, 1946, prohibit adults from engaging in dual employment, with state-specific labor laws also addressing this issue. While there is no overarching law against holding multiple jobs, it is essential that employment contracts do not include clauses restricting full-time engagement with another company. Violating this could lead to issues during the filing of Tax Deducted at Source (TDS) by both employers, potentially resulting in job loss.

Resolving such a situation requires tendering resignation from the previous job before joining another company. Background verification checks, crucial for confirming a candidate's information during hiring, include verifying EPFO records through UAN to prevent identity fraud. Negative findings in a background check may lead to job rejection.

To address overlapping Provident Fund (PF) records from different employers, approach the Regional PF Commissioner to rectify any discrepancies in appointment and discharge dates. A joint declaration form, signed by both the employee and employer, can correct PF member details. Complaints regarding EPF records can be filed using the EPF i-Grievance Management System. Successfully addressing dual employment stigma in EPF records restores clean employment records, allowing for future job opportunities.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 2 months ago

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A.Dear Client,
The Factories Act, 1948 and the Industrial Employment (Standing Order) Rules, 1946, prohibit adult workers from engaging in dual employment. Further, rules related to dual employment have been captured under State-specific labour laws. There is no overarching law that prohibits a person from doing multiple jobs. It is not illegal however both companies should not have the clause “cannot take up work full time in some other company” Then the issue will arise when TDS is being filed by both employers will come to know and consequently you may lose both jobs. So, before joining another Company you are required to tender your resignation from the earlier company that eventually caused the overlapping of service. Further, Background verification(BGV) check is a process many organizations carry out in order to verify the information provided by the candidate during hiring. Verification of EPFO records through UAN is critical process for conducting employee background checks because it allows employers to confirm that their employees are not using false or stolen identities to gain employment. In case of a negative background verification check an employer can even reject the employment of the candidate. In the given situation, to resolve the issue of overlapping in the P F records of both employers, you need to approach the office of Regional P F Commissioner who is the competent authority to resolve any anomaly arising out of date of appointment and date of discharge in EPF records. A joint declaration form is used to correct Provident Fund (PF) member details. It is a combined form that the employee and employer jointly sign and submit to the regional PF commissioner to update the wrong information entered in the employees’ PF accounts. An individual can file a complaint using the EPF i-Grievance Management System (www. https://epfigms.gov.in/). Once you succeed in wiping out the stigma of dual employment from your EPF records with the cooperation of your previous and present employer, your scope of employment with other companies will be restored with clean employment records
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