PF Registration can claim by ex employee

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vikrant (Querist)
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05 January 2022 company registered in 2010 in companies act and the company cross the limit of 20 employee in 2014 but not registered in the PF and in 2020 in november they are registering for the PF so the ex employee can claim there PF or any provision under this case?

CA Puja Sharma

CA Puja Sharma (Expert)
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05 January 2022 In my opinion no PF can be claimed by previous employees no such PF was deducted and paid by the company for the period before registration

vikrant

vikrant (Querist)
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05 January 2022 but it is the company fault not employee fault when the 20 people come across at the time of employee in the service company should do the registration but after leaving the employee company is registering then claim is being done ?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 In the scenario where a company did not register for Provident Fund (PF) when it should have, and only registered after the employee had left, here are the key points to consider:

### **1. Applicability of PF Registration**

- **Timing of Registration**: PF registration becomes mandatory once a company employs 20 or more employees. If a company crossed this threshold in 2014 but only registered in 2020, it was non-compliant with PF regulations for the intervening period.
- **Employee Rights**: Employees who were employed during the period when the company was required to be registered but was not, are still entitled to PF contributions for that period.

### **2. Claim by Ex-Employee**

- **Previous Employment**: An ex-employee who worked during the period when PF registration was mandatory but not complied with, can still claim their PF contributions, provided the employer retroactively fulfills their PF obligations.
- **Company’s Responsibility**: The responsibility to contribute to PF and settle claims lies with the employer. Even if the company registers late, it is responsible for ensuring that past PF dues are paid. The employer must rectify their mistake and make the necessary contributions and claims.

### **3. Process for Claiming PF**

- **Retrospective Contributions**: The company should ideally make retrospective contributions for the period when PF registration was mandatory. This includes both the employer's and employee's share.
- **Employee’s Claim**: The ex-employee should file a PF claim with the Employees' Provident Fund Organisation (EPFO). The claim process typically involves submitting a PF withdrawal or transfer form.

### **4. Legal and Procedural Steps**

1. **Verify Contributions**: The employee should verify the period of employment and the PF contributions that should have been made.
2. **Contact EPFO**: Submit a PF claim application to EPFO, specifying the period of employment and any pending dues. The EPFO will review the claim and take necessary actions.
3. **Employer’s Obligation**: The company is legally obligated to make the necessary contributions and clear any dues. If the company fails to do so, it could face penalties or legal action.

### **5. Remedies and Complaints**

- **Legal Action**: If the employer does not comply with their PF obligations, the employee can escalate the matter to the PF authorities or seek legal recourse.
- **EPFO Assistance**: The EPFO can assist in ensuring that the employer makes the due contributions and processes the claim.

### **Summary**

- **Ex-Employee Rights**: An ex-employee can claim PF contributions for the period they were employed when the company was required to be registered for PF but had not done so.
- **Company’s Obligation**: The company must make retrospective PF contributions for the period it failed to register and should process claims accordingly.
- **Action Steps**: Employees should file their claims with EPFO, and the company must fulfill its retroactive PF obligations to settle these claims.

In essence, the delay in PF registration does not absolve the company from its responsibility to contribute to PF for the periods before the registration was done. The employee has the right to claim PF contributions for their past service, and the company must address and rectify this issue as per regulatory requirements.