Sir, We are a small organization with 50 staff and not very professional. PF of many of the staff is not being deducted just because they dont like the PF Liability. So they are being paid cash and not recorded in the company a/c.
One of our employee who is 2 years old and not being deducted pf is dismissed from his service . He is also not given any Appointment letter.
Now the question is :-
1. Can he legally file any case against us?
2. How can we issue a experience certificate if he demands ?
Plz Help

From India , Indore
Dear Chat2enjoy
You have to deduct PF for everyone and add with employer contribution and Admin Charges and same to be deposited with PF Office. Please think in that way that you are doing service for his family too. If an employee died means surely his wife will get some amount in the name of Pension till their life time or till remarriage or till the daughters get married or son get a job or upto 21 years whatever it may be.
You have to issue the experience certificate to terminated employee with all the benefits (Notice Pay, Retrenchment Compensation, Leave pay) and in experience certificate you must mention the reason for release as terminated from service due to _______ (Reason).
Hope you could have kept your record from the employee for asking exemption from deducting PF.
Eventhough your organisation is small enough please start making all the documents and records proper.
All the best

From India, Kumbakonam
Dear sir, if you have staff with salary above 6500 / then no need to deduct PF,no need to issue any experience latter to said employee before reach final conclusion on your questions i would like to discuses matter in person if you need
rakkesh Yadav
labour law consultant

From India , New Delhi
dear sir i an advocate practicing labour laws in Delhi NCR area,feel free to contact me for any kind of quarry tnx rakkesh yadav 9811923933
From India , New Delhi
Dear All, Chat2 enjoy had already mentioned that theirs is a small organization and the employees are not willing to contribute to PF. Practically it is the situation that many small organisations are not in a position to pay minimum wages + PF in view of the price war. Even the employees are also not willing for deduction of pf from their minimum wages. Legal position is well known that organizations are supposed to pay minimum wages + PF and ESI contributions; and also raise pay the hike in minimum wages as and when it occurs. But the question is if the organizations face a situation like either pay less than minimum wages on consolidated basis (all inclusive) or go out of business, can we find a way out?
From India, Kakinada

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