Dear Seniors,
I am HR new joiner. There is one issue with respect to PF Withdrawal of one of the contract employee who has left the company now. After verification found that PF amount is not remitted to PF Office by the contractor. Because of which the employee working under the above contractor application is not processed at PF Office. what is the course of action to be initiated.
Please guide me.

From India, Bangalore
There is a liability on the Principle Employer, if the contractor fails to pay wages to his workers and also to deposit PF and other statutory dues. In this case, the Principle Employer should have checked whether timely and regularly wages are being distributed and contributions are deposited. Now, what Principle Employer best can do is to deposit the PF contribution immediately and recover the same from the Contractor from his bills.
Incidentally, the concerned worker can still claim his PF outstanding irrespective of the contributions have been deposited or not by the contractor or not. It is for the PF Office how to recover the dues from Employer. PF Office cannot deny the claim on the pretext that contributions are not deposited. I will advice the worker to move the District Consumer's redresssal Forum (Consumer Court) for the relief.

From India, Kolhapur
Hi,
Thank you for your valuable suggestion. As you suggested to make payment from the Principal Employer and get repayed by the contractor by withholding his bill but that contractor is no more working with us. In this Situation what action can be made. Kindly request you to help me to solve this problem as early as possible

From India, Bangalore
Hi Rathi,
Its better to pay all dues from Principal Employer's fund to avoid any inquiry or to fulfill statutory compliance.
I will also recommend to fulfill all statutory compliance which your contractor was lacking.

From India, New Delhi
As Mr Kulkarni and Puneet has suggested the statutory dues and Salary payment responsibility lies with the principle employer, you have not checked the statutory payments before making the full and final settlement of the contractor, so it would be your loss. So it is advisable to pay it off to avoid further consequences.
From India, Ahmadabad
Dear Seniors, We too have the same issue.. In that situation how to make the payment through PF portal. Please advise in what way the payments should made? Regards, Kasthuri
From India, Coimbatore
One PSU had a civil contract workmen and they have been paid their bill regularly every month by the concerned PSU. Notice issued by PF authorities on PSU because of PSU is a principal employer, to pay PF contributions of the civil contract employees, to the government as the PF contribution were not paid by the contractor so far? PSU stand is that they have paid the contractor's bill regularly and there is nothing is pending at PSU end to settle the contractor further. In the mean time PSU accounts were audited for many years and nothing has been mentioned about the non-payment of PF contributions to Govt. Now PSU has no records (Salary and their attendance) of the employees who have been engaged by PSU.
High light of this case is there is no claim from any of the employees on PF dues so far.
What is the stand PSU should take now? Pl advise since it is very urgent.

From India, Madras
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