New EPFO rule to weed out ghost a/cs
While admitting that assessment of companies has become difficult considering migratory contract labourers, the EPFO said in a circular: “Establishment shall file returns and remittances of its employees (whether regular or contractual) through ECR.”
If the company has on its rolls employees who are deputed to other establishments on a contractual basis, then the EPF code number of the establishment to which the employee have been deputed has to be mentioned in the ECR. “There shall be no assessment without identifying individual members in whose account the fund is to be credited,” it said.
Though this clause has triggered speculations that the EPFO was being unduly soft on erring companies, a senior official clarified that it was incorporated to weed out “ghost accounts” and curb corruption. “Some companies don’t give details of employees’ names even though they deduct PF contribution from their salaries, and then transfer these funds to promoters’ relatives or other fictitious people,” the official said.
“If the employer is unable or unwilling to submit requisite details, action under Sections 14, 14A, 14AA, 14AB and 14AC of the EPFO Act shall be initiated,” the circular said, referring to
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