The Employees Provident Fund Organisation (EPFO) has decided to take strict steps to ensure the money collected in the name of a worker by his or her employer is deposited and that action is taken against defaulters, specifically covering contractual staffers as well.
It recently issued two circulars, on November 30 and December 5, to address such action by contractors or employers. These say the EPFO and its website would now have not just the total number of subscribers under the head of each organisation but also the names of workers for whom payments have been made by the company. The first circular was signed by the outgoing commissioner, R C Mishra, on the day he retired; the second one is an elaboration on it.
Mishra refused to comment on the circulars, which deal with the illegal practice of ‘bulk payments’ but said it was the outcome of the organisation’s effort to stop diversion of funds meant for the poor. “We have not changed the rules but tried to stop something that is contrary to the law,’’ he said.
Added EPFO sources: “The principal employer is not giving the names of workers for whom they are making PF contributions. Our PF officials are also not asking for the names of these workers. The moment we insist on names, the employee is empowered. And, if an employer does not cooperate, we proceed under law, with criminal action.”
The two circulars would put a lid on the prevailing practice of ‘bulk payment’’ of PF contributions by contractors, colluding with officials of the principal employer and EPFO employees, rather than into specific accounts, says a senior official. None of the workers in question would get the amount due, as nothing existed in their name, thanks to the arbitrariness prevailing in the matter of collection of payments, the official said.
On lump sum payments, the circular of November 30 says: “The problem of lump sum assessments happens mostly in contractor establishments and in establishments employing workers of a migratory nature, having short-term project-based employment. The lump sum assessments happen because the default detection and the subsequent compliance action take place much after the occurrence of default. Further, the employer is either unwilling or unable to provide details of employees when so required during the course of enquiry.’’