Non Receipt Of Acct Slips Reg Epfo Cirulcar - PDF Download

Dear All,

Please find attached a circular from EPFO regarding the non-receipt of account slips by members, especially contractor employees, for your reference and records.

Regards,

Dear Seniors/Colleagues,

I am having some queries and asking for your valuable suggestions. Some employees are working at our project site on our off rolls. We are paying minimum wages to them, but we are not covering them under the EPF Act and not making EPF remittances for them. In this case, can we remit the Labour Welfare Fund contribution for such off-roll employees or not? Our Senior Manager (Accounts) is objecting, stating that if we have not covered them under the EPF Act, we should not pay the Labour Welfare Fund to avoid unnecessary compliance issues from statutory departments.

Please let me know if there is a connection between the Labour Office and the EPF office. If we pay the Labour Welfare Fund, will there be any objections from either the Labour Office or the EPF Office regarding EPF coverage? Please suggest what to do as soon as possible. We should not transfer them to any contractor.

Thanks & Regards,
MSN Raju

Dear Raju,

You have to bring some clarity as to what "off rolls" means. Employers have a tendency to hire individuals on vouchers or as consultants or trainees, among other roles. There may be various reasons for doing so, such as avoiding compliance with labor laws or providing a higher take-home pay to employees.

It is important to note that anyone engaged as an employee is entitled to the benefits of all labor laws, including P.F., ESI, Labor Welfare Fund, Bonus, Gratuity, Maternity Benefits, etc. During an inspection by a labor officer at your office, compliance with various regulations, such as P.F. and Labor Welfare Fund, may be reviewed comprehensively. However, a P.F. Inspector may not inquire about Labor Welfare Fund details as the P.F. department is not the relevant authority for LWF matters.

As an HR person, you must strongly advocate for compliance with labor laws. Some managers in organizations may advise against maintaining compliance with labor laws to showcase cost savings to their superiors and gain favor. It is essential to educate everyone that if non-compliance is discovered by labor law officials, payments with retrospective effects and penalties may be imposed.

Regards,

Kuldeep Singh

Yes, I completely agree with Mr. Kuldeep Singh's message. It is very important to follow and put it into practice, especially when you are also being referred to as an employee in the same organization.

Regards,
Hemalatha

Further to Mr. Kuldeep Singh's message, which is loud and clear, it is not a question of clearing dues with retrospective effect and penalties. We will be asked to provide a lot of documents (back papers), especially by EPFO Authorities, such as the Balance Sheet, Attendance records, and more. The job will be very tedious to convince PF authorities to reduce the penalties and the dues we need to pay retroactively.

Hence, as HR professionals, we should always hold our heads high and convey to Management - YES, we must comply with the laws and rules of the country, even if they are multinational corporations.

Sundararaman

Further to my above views, one question - how many of us are ready to do that, or will we save our skin by opting for non-compliances?

HR professionals are there to provide the updated documents as required by the inspectors or authorities. I don't think it should be a burden for us to do so. I shall be proud enough to interact with them, provided the organizations follow the law and are prompt in their duties. :)

Regards