PF Dual contribution

General Discussions
1

Hello All,
i have a doubt about dual contribution if the employee has dual pf contribution the employment years also same than what to do any solutions?
That hr can do ?

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2

Hi Sreenath,

If an employee is making dual PF contributions (i.e., from two different employers) with overlapping periods of employment, this creates a compliance issue with EPFO norms, and HR must act quickly to resolve it.

Here’s a detailed explanation:

Problem Summary ----- Dual PF Contributions with Same Employment Period

An employee contributing to two EPF accounts simultaneously, while claiming full-time employment in both, violates the Employees’ Provident Funds Scheme, 1952, because:

  • An individual cannot hold dual full-time employment with overlapping PF contributions.
  • The EPFO system may flag it as suspicious or non-compliant, possibly triggering investigation or rejection of service history or pension benefits later.

Possible Scenarios & HR Solutions

Scenario 1----- Genuine Overlap Due to Transition

If the overlap is due to:

  • Short notice period conflicts (e.g., employee joins a new company while notice is ongoing at the old one)
  • Payroll error causing a duplicate PF contribution

Action HR can take:

  • Coordinate with the employee and previous employer to file a joint representation to EPFO.
  • Submit a clarification letter explaining the overlap period.
  • Request EPFO to nullify one set of contributions or adjust the exit date in the old employer’s PF records.

Scenario 2 ----- Employee Intentionally Concealed Dual Employment

If the employee actively held two full-time jobs and received PF benefits from both:

Action HR can take:

  • Conduct an internal inquiry to assess the intent and gather documentation.
  • If the employee misrepresented employment, it may invoke disciplinary action or even PF fraud reporting to EPFO.

What EPFO Typically Does

  • EPFO may reject one of the overlapping service records during UAN history validation.
  • In cases of retirement or PF withdrawal, they may freeze accounts until the issue is rectified.
  • It may impact pension eligibility (EPS) due to contribution inconsistencies.

HR Compliance best practices

  1. UAN Check at Onboarding: Ensure UAN is validated, and last employment’s exit is marked in EPFO.
  2. Background Verification: Confirm full-time status and relieve dates from the previous employer.
  3. Proactive Rectification: Contact the EPFO regional office for correction through:
  • Form 10
  • Joint declaration
  • Correct exit date updates

HR should work with:

  • The Finance/Payroll team
  • The employee
  • If needed, the previous employer

…to ensure only one active PF contribution exists during any time frame.

Disclaimer: This note is intended for general informational purposes only. It does not constitute legal advice. For specific legal concerns, consult official guidance from the EPFO or your legal counsel.

Regards,
Bhuvana Anand

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3

Hi @Bhuvana_Anand

What are the Acts to be displayed on the notice Board for non factory (office) establishments in Karnataka?

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@mohanjacob Sir

For non-factory establishments (offices) in Karnataka, there is no single officially published list mandating which Acts must be displayed on the notice board. However, based on compliance practices, labor law obligations, and practical guidance followed by establishments and labor consultants, the following Acts and related notifications are generally recommended or mandated for display under central and state rules:

Mandatory Acts/Information to Display (General Labour Compliance)

  1. The Karnataka Shops and Commercial Establishments Act, 1961
  • Abstract of the Act and Rules in Kannada (mandatory under Rule 24).
  • Name of the Establishment, Registration Certificate, and weekly holiday details.
  1. The Minimum Wages Act, 1948
  • Abstract of the Act and Rules (Form IX).
  • Current Minimum Wages Notification (as applicable to job categories in your establishment).
  1. The Payment of Wages Act, 1936
  • Abstract of the Act and Rules (Form V).
  • Date of wage payment and name of the person responsible for payment.
  1. The Equal Remuneration Act, 1976
  • Abstract of the Act (Form D).
  • Statement showing no discrimination in wages between men and women for same work.
  1. The Maternity Benefit Act, 1961
  • Abstract of the Act and Rules (Form K).
  • Applicable to establishments with 10 or more employees.
  1. The Employees’ Compensation Act, 1923
  • Abstract of the Act and name/address of the Commissioner (in Form A).
  1. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
  • Details of the Internal Committee and contact information.
  • Policy on prevention of sexual harassment.
  1. The Contract Labour (Regulation and Abolition) Act, 1970 (If applicable)
  • Copy of license (for contractors).
  • Abstract of the Act and Rules (Form XIII).

Additional Recommended Posters / Notices

  • Working hours, rest interval, opening and closing hours (under Karnataka Shops Act).
  • Weekly holiday notice.
  • List of holidays (as per the Karnataka Industrial Establishments (National & Festival Holidays) Act, 1963).
  • Name and designation of the manager/person-in-charge.
  • Emergency contact numbers – Police, Fire, Hospital, Local Authority.
  • Grievance Redressal Mechanism/Officer details.
  • ESI and EPF details (as applicable) – Names and E-codes.

Language and Format Requirements

  • All abstracts/notices must be displayed in English and Kannada.
  • They must be legible, prominently displayed, and in a place frequented by employees (e.g., near the entrance or employee common area).

Best Practice Tip

Maintain a compliance display board and a compliance file with signed copies of these abstracts, along with up-to-date wage notifications and inspection records. This aids in smooth audits by the Labour Department.

Hope this helps.

Regards,
Bhuvana Anand

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5

Madam,

Kindly share the statutory requirements for organizations listed under the TN Shops and Establishment Act.

Thank You,
Annette

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6

Hi @annette

Comprehensive Statutory Requirements Under Tamil Nadu Shops and Establishments Act, 1947

1. Registration and Licensing

Mandatory Registration (Updated July 2024)

  • Threshold: Only establishments employing 10 or more workers must register (effective July 2, 2024)
  • Timeline: Registration must be completed within 6 months from commencement of business Tamil Nadu Shops and Establishments Act Registration
  • Process: Online application through Form-Y via Labour Department’s designated web portal
  • Traditional Timeline: For establishments below 10 employees (if voluntarily registering), the 30-day timeline using Form A may still apply

Existing Establishments

  • Must furnish details in Form-ZB through the designated web portal
  • Required for establishments existing before July 2, 2024, that meet the 10+ employee threshold

Amendments and Changes

  • Ownership/Address Changes: Must be notified within 15 days using Form B
  • Business Nature Changes: Requires notification within 15 days
  • Closure Intimation: Form C must be submitted within 30 days of closure to the Inspector, who will then cancel the registration certificate

Certificate Management

  • Display: Registration certificate must be displayed prominently on business premises
  • Validity: Registration certificates are valid for 5 years
  • Renewal: Must be renewed before expiry by paying applicable renewal fees

2. Display Requirements

Name Board Compliance

  • Primary Language: Name board must be in Tamil
  • Secondary Languages: Where other languages are used, English shall be in second place, followed by other languages
  • Prominence: Tamil version must be written predominantly with more space than other languages
  • Script: Tamil letters must be in reformed script

Mandatory Notice Display

  • Location: At or near the main entrance of the establishment
  • Content: Copy in English with correct translation in the language of majority employees of approved acts or omissions
  • Working Hours: Clear display of daily working hours and weekly holidays
  • Wage Rates: Current wage rate information
  • Transportation Notice: For women employees working night shifts, display of available transportation facilities

3. Working Hours and Rest Periods

Daily and Weekly Limits

  • Daily Limit: Maximum 8 hours per day
  • Weekly Limit: Maximum 48 hours per week
  • Young Persons (15-18 years): Maximum 42 hours per week

Overtime Provisions

  • Additional Hours: Up to 12 additional hours per week permitted
  • Overtime Rate: At twice the ordinary wage rate
  • Documentation: Proper recording of overtime hours and compensation

Rest and Break Requirements

  • Rest Interval: Minimum 1-hour break after 5 continuous hours of work
  • Weekly Holiday: One mandatory weekly holiday (typically Sunday)
  • Festival Holidays: As per Tamil Nadu Industrial Establishments (National and Festival Holidays) Act, 1958

4. Employment of Women, Children, and Young Persons

Child Employment Restrictions

  • Prohibition: Section 17 strictly prohibits employment of children under 14 years
  • Penalties: Strict enforcement with significant penalties for violations

Adolescent Employment

  • Age Group: 15-18 years (young persons)
  • Medical Certification: Required under certain conditions
  • Hour Restrictions: Maximum 42 hours per week

Women Employee Protections

  • Standard Hours: Generally restricted between 6:00 AM and 8:30 PM
  • Night Shift Provisions: Work between 8:00 PM and 6:00 AM requires:
    • Written consent from the woman employee
    • Proper transportation facilities
    • Safety measures and security arrangements
  • Transportation Notice: Must be displayed at main entrance
  • Sexual Harassment Prevention: Internal complaints committee must be constituted under Sexual Harassment of Women at Workplace Act, 2013

5. Wages and Leave Entitlements

Wage Payment Requirements

  • Payment Schedule: Before 7th of every month (10th for establishments with >1000 employees)
  • Deductions: Wages must be paid without unauthorized deductions except those permitted under Section 34(2)
  • Fine Limitations: Total fines in any wage period cannot exceed half an Anna per rupee of wages payable

Leave Entitlements

  • Earned Leave: 12 days per year
  • Casual Leave: 12 days per year
  • Sick Leave: 12 days per year
  • Maternity Leave: As per Maternity Benefit Act, 1961
  • Encashment: Accumulated earned leave up to 45 days can be carried forward or encashed upon exit

6. Records and Registers Maintenance

Mandatory Records

Employers must maintain accurate records including attendance registers, wages, and leave records as legal requirements

  • Form E: Register of employment
  • Form F: Wage register
  • Form G: Register of leave
  • Form H: Inspection book
  • Additional Records: Employee details, working hours, overtime records

Digital Maintenance

  • Electronic Records: Post-amendment, records may be maintained digitally
  • Accessibility: Records must be readily available for inspection
  • Retention: Proper record retention as per statutory requirements

7. Annual Returns and Compliance Filings

Annual Reporting

  • Form U: Annual return to be filed online before January 31 each year
  • Content: Comprehensive details of establishment operations, employee statistics, compliance status
  • Other Reports: Periodic reports as required by Inspector of Labour

8. Health, Safety, and Welfare Requirements

Workplace Conditions

  • Cleanliness: Working areas must be clean and free from odors from drains or nuisances
  • Lighting and Ventilation: Proper lighting and ventilation systems
  • Hygiene: Clean and hygienic working conditions

Facilities and Amenities

  • First-Aid: Mandatory first-aid box for every 150 employees or part thereof (Rule 6A)
  • Sanitation: Separate facilities for men and women
  • Drinking Water: Clean drinking water availability
  • Safety Lockers: Provision for employee belongings
  • Restrooms and Washrooms: Adequate facilities based on employee strength

9. Termination and Gratuity Provisions

Notice Requirements

  • Notice Period: Minimum 30 days for employees with more than 1 year of service
  • Compensation: Payment in lieu of notice may apply
  • Documentation: Proper termination procedures and documentation

Gratuity Compliance

  • Applicability: As per Payment of Gratuity Act, 1972
  • Threshold: Establishments with 10 or more employees
  • Calculation: As per statutory provisions

10. Inspection and Enforcement

Inspector Powers

  • Entry Rights: Section 42 empowers inspectors to enter establishments within reasonable hours
  • Inspection Scope: Check premises, registers, records, and notices as prescribed
  • Cooperation: Establishments must cooperate with inspection processes

Penalties for Non-Compliance

  • Serious Violations: Section 45 provides for penalties, fines, or imprisonment for establishments failing to comply with Section 41A provisions
  • Prosecution: Authorities may prosecute for repeat or willful violations

11. Exemptions from the Act

Exempted Organizations:

  • Persons in management positions
  • Employees whose work involves traveling
  • Canvassers and caretakers
  • Central and State Government establishments
  • Local authorities and Reserve Bank of India
  • Railway administrations
  • Cantonment authorities
  • Temporary bazaars during fairs/festivals (up to 15 days)
  • Establishments governed by separate laws (e.g., Factories Act, 1948)

12. Related Compliance Requirements

Concurrent Labor Law Compliance

Organizations must also comply with:

  • Payment of Wages Act, 1936
  • Minimum Wages Act, 1948
  • Equal Remuneration Act, 1976
  • Maternity Benefit Act, 1961
  • Tamil Nadu Labour Welfare Fund Act, 1972
  • Tamil Nadu Industrial Establishments (National and Festival Holidays) Act, 1958
  • Sexual Harassment of Women at Workplace Act, 2013

Additional State-Specific Requirements

  • Professional Tax: Registration and compliance as applicable
  • ESI and EPF: Social security compliance for eligible establishments
  • Contract Labour Regulations: If applicable to the establishment

13. Benefits of Compliance

Operational Advantages

  • Legal Recognition: Official business legitimacy
  • Banking: Easier current account opening and loan access
  • Government Schemes: Access to various state and central government benefits
  • Smoother Inspections: Reduced compliance issues during official visits
  • Business Credibility: Enhanced trust with suppliers, customers, and partners

This comprehensive framework ensures that organizations operating under the Tamil Nadu Shops and Establishments Act maintain full statutory compliance while protecting employee rights and promoting safe, fair working conditions.

Regards,
Bhuvana Anand

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