Unfair Policies of my employer

[amar_n 0]

Respected Members,

 

 

I am working in a Software MNC head-quartered in Pune. 5 years back when I joined the company, HR had a policy that the incumbent may or may not opt for EPF. So, I did not to opt.

 

 

Recently, after and audit and some meetings with the EPFO Commissioner they realised that the HR policy was wrong. We received a mail from HR regarding that. We must have had an EPF account. But now, HR is asking all the employees without EPF account to open one account. And contribute the entire EPF deduction amount (5 years in my case, or the tenure of employment) into the new EPF account along with the interest. This is coming to a very large amount. All employees that have not opted for EPF are facing that issue.

 

 

We all have financial commitments and it will be difficult for us to bear such a big financial burden. The point here is: this happened because of faulty HR policies and employees are paying for it.

 

 

The reason the IT industry do not have a labour union, management is taking all undue advantage of the employees.

 

Is this legal? I want to know our options here. Can we go to the media, union or the Court? What are our prospects?

 

We will be grateful if you provide some inputs here. Otherwise, we are at nowhere.

 

 

Thanks a lot.

Edited March 7, 2017 by amar_n
Typo

[Prasad GLN 1,758]

Please understand that EPF is a legal obligation of employer. It is not only the employee and even employer has to make equal contributions. Wait for few months and make a temporary withdrawal if you can not afford. EPF is the best scheme to safeguard the future of all employees. This is the best organized department. Mistakes may be any where, and if your HR is at mistake, do not take it seriously.

You are equally eligible for tax deductions as EPF amount is not taxable and amounts can be withdrawn permanently for some purposes.

Even when you have Union, this activity is a statutory obligation, and so far no established union has stated any thing adverse against EPF.

The difficulty may be temporary, but the fruits are sweet in long run. Go for it, and do not spoil mental peace on trivial issues which are mandatory to all employees.

[RAVEENA_O 529]

It was your fault that you did not join EPF. The company cannot continue you without EPF Subscription especially when legal process has already been commenced by the EPFO. It is necessary to contribute employees contribution even by taking loan.

 

Explore the possibility of treating the outstanding contribution as a recoverable EPF advance and pay back that amount in installments. If you default, the management may not take it lightly since they have to face the music.

 

Going to media shall tarnish the image of the company which may lead to further complications. Try to settle the issue amicably.

[amar_n 0]

It was your fault that you did not join EPF. The company cannot continue you without EPF Subscription especially when legal process has already been commenced by the EPFO. It is necessary to contribute employees contribution even by taking loan.

 

Explore the possibility of treating the outstanding contribution as a recoverable EPF advance and pay back that amount in installments. If you default, the management may not take it lightly since they have to face the music.

 

Going to media shall tarnish the image of the company which may lead to further complications. Try to settle the issue amicably.

 

It was an illegal policy of the employer that created that situation. Allowing employees not to opt for PF is illegal, which they were not aware at that time. I spoke to lawyers about it.

 

They could have settled the issue with the PF office. But instead, employees are being asked to pay. Amount + Interest.

 

Now, where is our fault. Have not maintained the right PF policies in the organization? Management will not take it lightly......so we sit back...? Don't do anything?

[Prasad GLN 1,758]

Now that you have already concluded with your expertise and obtained legal opinion, there is no further use in prolonging discussions. All the best.