Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
July 21—Disputes over employer pension plan liabilities will be more quickly resolved under guidelines released by the Employees Provident Fund Organization June 15.
The EPFO has instructed its regional offices to expeditiously conclude inquiries into cases where employers have not made provident fund contributions or claim they are not liable for contributions, where amounts due from employers are disputed or where employers have recently registered and provident fund contributions are due retrospectively. These disputes are covered under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act, which applies to all businesses employing 20 or more people.
In cases of employers recently registered that have not yet begun making contributions or of employers suspected of evasion of contributions or failure to enroll contract employees, two separate inquiries must be initiated. First, an inquiry into contributions due for the current year must be concluded within three months of the employer being issued a notice under Section 7A. A separate enquiry will determine contributions due for previous years.
Regional officers are responsible for informing employers why inquiries are being made and for ensuring that a Section 7A notice is served on the proper person and an acknowledgment received and recorded. The notice must explain the basis on which the back contributions have been calculated. Employers must be given a reasonable opportunity to contest the levy.
In a July 16 e-mail alert, consultancy EY advised employers to review the status of their Provident Fund compliance with their obligations to both international and domestic workers.
“Where required, remedial action should be taken to ensure accurate and complete compliance,” EY said, adding that employers facing Section 7A proceedings should expect early resolution and plan their next steps, whether payment or appeal to the Provident Fund Appellate Tribunal.
To contact the reporter on this story: Madhur Singh in Chandigarh at email@example.com
To contact the editor responsible for this story: Rick Vollmar at firstname.lastname@example.org
An earlier EPFO circular providing guidelines for conducting Section 7A proceedings is available here.
For more information on Indian HR law and regulation, see the India primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)