The Employees' Provident Fund & Misc. Provisions Act supplies social safety to staff working in any status quo enticing 20 or extra persons/ all kinds of employee (day by day wages, per thirty days, piece-rated, via contractor, part-time) on any day directly or not directly via a contractor. It supplies for obligatory deduction of the provident fund from staff and a contribution from the employer which is deposited in the employee's account in EPFO.
Around 6000 establishments are registered with PF department in Ludhiana. Out of them roughly about 1500 are defaulters and aren't depositing the quantity in time. Since Ludhiana is a large city, there may also be some extra establishments still not registered under PF act we are in the strategy of scrutinising them.
We are going to be strict in imposing compliance with those who are routine offenders. I've won third-party knowledge, there are lots of establishments which have greater than 20 people but aren't registered under EPF Act and in addition there are lots of establishments who are showing much less selection of staff in their PF Account books in comparison to their actual selection of staff. We will verify this third party knowledge and after verifying we will be able to take action as in keeping with law after following due strategy of Inspections.
It is not a call to be had with the eligible status quo but necessary for them to comply. However, our total focus can be to offer EPF benefits to all eligible staff and 100% agreement of declare in 10 days and speedy focus can be on 100% KYC of entirety of all staff and will talk to employers seeking their cooperation on this regard. And if still there's no compliance, action can be taken against those employers who are willfully not submitting KYC - Aadhar and checking account main points of their staff and not approving KYC of staff via DSC (Digital Signature Certificate).
KYC linking ensures the Actual id of staff and probabilities of fraud turns into nil and this also makes them free from dependency on employers for their claims attestation after leaving the task if they have got their KYC verified all the way through their employment.
Eligibility standards
It is necessary to understand that an employee is eligible for membership from the day he joins the covered status quo. Every employee, including the only hired via a contractor who's in receipt of wages up to Rs.15,000 (previous it was Rs.6,500), will likely be eligible to turn out to be a member of the budget. If the pay of a member-employee will increase beyond Rs.15,000 after his having turn out to be a member, he shall continue to be a member however the contribution payable in recognize of him will likely be limited to the quantity payable on a per thirty days pay of Rs.15000. Notably, EPF Act makes no distinction between an Employer or a Principal Employer.
Every Principal Employer, Private/PSU/Government, is responsible to make sure that all kinds of staff engaged directly or not directly via a contractor in their status quo get social safety benefits under the provisions of EPF Act. Recently, we have issued display cause notices to 500 establishments including industries, schools, colleges, hospitals and so on for not offering information about contractors/contractual staff in Ludhiana.
Scheme to incentivise the employers
Ministry of Labour & Employment has began Pradhan Mantri Rojgar ProtsahanYojana (PMRPY), a scheme to incentivise employers registered with the Employees Provident Fund Organisation (EPFO) for task creation by means of the Government reimbursement/paying of the 8.33% contribution of employers in recognize of latest staff having a UAN. For the textile (apparel) sector, the Government will also be paying the 3.67% Employees Provident Fund (EPF) contribution of the eligible employer for these new staff. The Scheme is operational with impact from August 9 2016.
Who may also be regarded as as an employee
As in keeping with phase 2f of Act, an “employee” means any individual who's hired for wages in any more or less work, handbook or another way, in or in reference to the work of an status quo and who will get his wages directly or not directly from the employer and contains any individual. A sweeper working for more than one status quo, located in the street, and paid steadily weekly/per thirty days foundation by means of the status quo, he is an employee under the Act. Employees within the scope of phase 2(f) will come with not most effective those people who in reality manufacture items but, all those hired in the office of the manufacturing unit or status quo and those who do any work e.g. watch and ward team of workers.
Sweeper, Watchman, and Gardener working twice or thrice a week are Employees under 2(f) of Act.
Part-Time Employee: An individual generally is a servant of more than one employer. A Servant/Employee need not be under the unique keep watch over of one master.
Changulies or Day Labour for seasonal operation or common operations are staff.
Contractor Employees are staff of essential employer working in or in reference to the work of essential employer.
If an employer violates any provision of Act, he would possibly invite judicial continuing
For bringing transparency in inspection, the government has made a coverage that now the inspections of establishments may also be executed most effective after the permission of Central and Analysis Unit, New Delhi and Inspection report must be uploaded on Shram Suvidha portal inside of 72 hours of allotment of inspection to PF Inspector/ enforcement officer.
It is also seen that when PF officials consult with the status quo, the employer seeks some time to produce the information. They are requested to not search the time as inspectors don’t have the authority to present any time extension as they have to post a report on-line on shramsuvidha portal inside of 72 hours of its allotment. Non-production of information as demanded by means of PF officer is an offence under the Act and would possibly lead to the prosecution of the status quo as non-compliance under Act is a Cognizable Offence and draws critical penalty.
It is also occasionally seen that employer don't give due attention to inquiry under Section 7A for choice of dues of all eligible staff as in keeping with phase 2f of EPF & MP Act, against their status quo, which additional leads to action against employers and pointless litigation in higher courts. It is informed that enquiry under Section 7A of EPF Act is a judicial enquiry within the that means of Section 193,196 and 228 of India Penal Code ( IPC). The officer undertaking the 7A Enquiry has the same powers as are vested in a Court under CPC for attempting a go well with.
Penalties for defaulting employer/establishments under the Act
Non-compliance under Act is a cognizable offence and draws penalty under following provisions of Act
Section 14(1) of Act: “ Whoever, for the aim of warding off any fee to be made by means of himself under this Act, the Scheme, the Pension Scheme or the Insurance Scheme or of enabling another particular person to avoid such fee, knowingly makes or causes to be made any false remark or false illustration will likely be punishable with imprisonment for a time period which would possibly extend to one 12 months, or with high-quality of five thousand rupees, or with both”. Section 14 AB of Act: “Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (five of 1898) an offence relating to default in the fee of contribution by means of the employer punishable under this Act will likely be cognizable”. Further, any behind schedule remittances also attract heavy damages and penalty under phase 14B & 7Q of the Act.
Recent employee-friendly tasks
In a bid to offer higher services and products to employers, staff and pensioners in addition to to result in ease of compliance and governance, retirement fund frame EPFO has taken quite a lot of tasks recently, including View Pension Passbook Service for pensioners by the use of the Umang App, Pensioner’s Portal at EPFO web page, EPFO contributors to learn about contributions not deposited by means of employers and E-Nomination facility. We have set up three counters in PF office Ludhiana to facilitate PF contributors to document their Online Claims. But the Prerequisite for filing on-line claims is linking of KYC with Aadhar and checking account and its verification and updation. PF Office Ludhiana can even Conduct 10 Seminar/workshop for both Employers and Employees to lead them to aware about EPF Provisions, benefits and recent e-initiatives was taken by means of EPFO for both Employers and Employees.
Writer is Regional PF Commissioner Ludhiana
Around 6000 establishments are registered with PF department in Ludhiana. Out of them roughly about 1500 are defaulters and aren't depositing the quantity in time. Since Ludhiana is a large city, there may also be some extra establishments still not registered under PF act we are in the strategy of scrutinising them.
We are going to be strict in imposing compliance with those who are routine offenders. I've won third-party knowledge, there are lots of establishments which have greater than 20 people but aren't registered under EPF Act and in addition there are lots of establishments who are showing much less selection of staff in their PF Account books in comparison to their actual selection of staff. We will verify this third party knowledge and after verifying we will be able to take action as in keeping with law after following due strategy of Inspections.
It is not a call to be had with the eligible status quo but necessary for them to comply. However, our total focus can be to offer EPF benefits to all eligible staff and 100% agreement of declare in 10 days and speedy focus can be on 100% KYC of entirety of all staff and will talk to employers seeking their cooperation on this regard. And if still there's no compliance, action can be taken against those employers who are willfully not submitting KYC - Aadhar and checking account main points of their staff and not approving KYC of staff via DSC (Digital Signature Certificate).
KYC linking ensures the Actual id of staff and probabilities of fraud turns into nil and this also makes them free from dependency on employers for their claims attestation after leaving the task if they have got their KYC verified all the way through their employment.
Eligibility standards
It is necessary to understand that an employee is eligible for membership from the day he joins the covered status quo. Every employee, including the only hired via a contractor who's in receipt of wages up to Rs.15,000 (previous it was Rs.6,500), will likely be eligible to turn out to be a member of the budget. If the pay of a member-employee will increase beyond Rs.15,000 after his having turn out to be a member, he shall continue to be a member however the contribution payable in recognize of him will likely be limited to the quantity payable on a per thirty days pay of Rs.15000. Notably, EPF Act makes no distinction between an Employer or a Principal Employer.
Every Principal Employer, Private/PSU/Government, is responsible to make sure that all kinds of staff engaged directly or not directly via a contractor in their status quo get social safety benefits under the provisions of EPF Act. Recently, we have issued display cause notices to 500 establishments including industries, schools, colleges, hospitals and so on for not offering information about contractors/contractual staff in Ludhiana.
Scheme to incentivise the employers
Ministry of Labour & Employment has began Pradhan Mantri Rojgar ProtsahanYojana (PMRPY), a scheme to incentivise employers registered with the Employees Provident Fund Organisation (EPFO) for task creation by means of the Government reimbursement/paying of the 8.33% contribution of employers in recognize of latest staff having a UAN. For the textile (apparel) sector, the Government will also be paying the 3.67% Employees Provident Fund (EPF) contribution of the eligible employer for these new staff. The Scheme is operational with impact from August 9 2016.
Who may also be regarded as as an employee
As in keeping with phase 2f of Act, an “employee” means any individual who's hired for wages in any more or less work, handbook or another way, in or in reference to the work of an status quo and who will get his wages directly or not directly from the employer and contains any individual. A sweeper working for more than one status quo, located in the street, and paid steadily weekly/per thirty days foundation by means of the status quo, he is an employee under the Act. Employees within the scope of phase 2(f) will come with not most effective those people who in reality manufacture items but, all those hired in the office of the manufacturing unit or status quo and those who do any work e.g. watch and ward team of workers.
Sweeper, Watchman, and Gardener working twice or thrice a week are Employees under 2(f) of Act.
Part-Time Employee: An individual generally is a servant of more than one employer. A Servant/Employee need not be under the unique keep watch over of one master.
Changulies or Day Labour for seasonal operation or common operations are staff.
Contractor Employees are staff of essential employer working in or in reference to the work of essential employer.
If an employer violates any provision of Act, he would possibly invite judicial continuing
For bringing transparency in inspection, the government has made a coverage that now the inspections of establishments may also be executed most effective after the permission of Central and Analysis Unit, New Delhi and Inspection report must be uploaded on Shram Suvidha portal inside of 72 hours of allotment of inspection to PF Inspector/ enforcement officer.
It is also seen that when PF officials consult with the status quo, the employer seeks some time to produce the information. They are requested to not search the time as inspectors don’t have the authority to present any time extension as they have to post a report on-line on shramsuvidha portal inside of 72 hours of its allotment. Non-production of information as demanded by means of PF officer is an offence under the Act and would possibly lead to the prosecution of the status quo as non-compliance under Act is a Cognizable Offence and draws critical penalty.
It is also occasionally seen that employer don't give due attention to inquiry under Section 7A for choice of dues of all eligible staff as in keeping with phase 2f of EPF & MP Act, against their status quo, which additional leads to action against employers and pointless litigation in higher courts. It is informed that enquiry under Section 7A of EPF Act is a judicial enquiry within the that means of Section 193,196 and 228 of India Penal Code ( IPC). The officer undertaking the 7A Enquiry has the same powers as are vested in a Court under CPC for attempting a go well with.
Penalties for defaulting employer/establishments under the Act
Non-compliance under Act is a cognizable offence and draws penalty under following provisions of Act
Section 14(1) of Act: “ Whoever, for the aim of warding off any fee to be made by means of himself under this Act, the Scheme, the Pension Scheme or the Insurance Scheme or of enabling another particular person to avoid such fee, knowingly makes or causes to be made any false remark or false illustration will likely be punishable with imprisonment for a time period which would possibly extend to one 12 months, or with high-quality of five thousand rupees, or with both”. Section 14 AB of Act: “Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (five of 1898) an offence relating to default in the fee of contribution by means of the employer punishable under this Act will likely be cognizable”. Further, any behind schedule remittances also attract heavy damages and penalty under phase 14B & 7Q of the Act.
Recent employee-friendly tasks
In a bid to offer higher services and products to employers, staff and pensioners in addition to to result in ease of compliance and governance, retirement fund frame EPFO has taken quite a lot of tasks recently, including View Pension Passbook Service for pensioners by the use of the Umang App, Pensioner’s Portal at EPFO web page, EPFO contributors to learn about contributions not deposited by means of employers and E-Nomination facility. We have set up three counters in PF office Ludhiana to facilitate PF contributors to document their Online Claims. But the Prerequisite for filing on-line claims is linking of KYC with Aadhar and checking account and its verification and updation. PF Office Ludhiana can even Conduct 10 Seminar/workshop for both Employers and Employees to lead them to aware about EPF Provisions, benefits and recent e-initiatives was taken by means of EPFO for both Employers and Employees.
Writer is Regional PF Commissioner Ludhiana
Establishments not registered with PF department to face action soon
![Establishments not registered with PF department to face action soon]()
Reviewed by Kailash
on
February 08, 2019
Rating:
