Adv.alim Patel
Asked December 18, 2016

Dues on employment fund unpaid

  • 1 Answer
  • 705 Views

The establishment( Company) has failed to pay the dues of employees provident fund for last two years.The Commissioner of provident fund has passed order under section 7A of Employees providential funds and miscellaneous provisions act and directed to the establishment to remit admitted dues within 25 days of the receipt of order.The establishment is unable to pay dues due to financial problems in that case whether application for further time to pay dues by installment can be made to the Commissioner?

Answer 1

It is the responsibility of employer to deposit employee Provident Fund contribution in time after its deduction from employee’s salary. Employer cannot retain such amount. Further, an application for further time to pay dues by installment can be made to the regional PF commissioner.

  • Maximum installments shall be 36 (monthly installments). However, the number of installments admissible in each case will be decided on individual merits.
  • A revolving bank guarantee equal to one installment shall be furnished along with the proposal.
  • The proposal shall be submitted to the regional / sub-regional / sub-accounts office controlling compliance of the establishment. Depending on the delegated powers the case shall be processed by the appropriate office.
  • Where the case is to be decided by the Head office, the proposal complete in all respect shall be forwarded by the Regional Provident Fund Commissioner-I alongwith his observations and specific recommendations.
  • RPFC-I shall recommend the installment only where it exceeds the delegated powers or where the period required stretches beyond the calendar year.
  • Only if the RPFC is satisfied about the viability of the scheme, he shall send his recommendation.
  • The number of installments recommended shall be reasonable and relatable to the quantum of default.
  • The establishment shall ensure remittance of the current dues alongwith the installment dues before 15th of the month.
  • There shall be an undertaking regarding payment of damages and interest dues as and when levied.
  • The installment scheme shall be deemed to have been cancelled in case of any default in payment either of installment amount or current dues.
  • Consequent on the cancellation of the installment facility, all coercive steps shall be initiated against the establishment / employer for realizing the outstanding dues without further notice under section 8 The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952.

 

http://www.epfindia.com/site_docs/PDFs/Circulars/Y2013-2014/RRC_InstallmentFacilityInstructions_23781.pdf

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