PF Inspection FAQ 2017

Question 1: What is the regulation under which establishments covered under EPF & MP Act, 1952 are being inspected?


Answer: Establishments are inspected as per the inspection scheme of the Employees’ Provident Fund Organization, which has been circulated vide Circular No. MIS-2 (4) CAIU/Web Portal/2014-15/dated 26.06.2014.

Question 2: Which are the establishments exempted from inspection under EPF & MP Act, 1952?


Answer: Following establishments have been exempted from inspection:

a) For the first year of setting up of the Start-ups, such establishments may not be inspected under EPF & MP Act, 1952. These Start-ups may be asked to submit an online self-declaration instead.

b) Start-ups are allowed to submit self-certified returns under EPF & MP Act, 1952. From the second year onwards, up to five years from the setting up of the unit, such Start-ups may be taken up for inspection only when very credible and verifiable complaints of violation are filed in writing and the approval has been obtained from the Central Analysis and Intelligence Unit (CAIU).

Question 3: What are the different types of inspection?

Answer:

  1. i) Mandatory inspection
  2. ii) Inspection can be conducted in cases forwarded through CAIU of EPFO
  3. ii) Optional inspection

Question 4: What are the different criteria under which establishments are being selected for inspection?

Answer: The criteria for inspection will be mandatory for following all units:

  1. All establishments registered on ECR portal, not marked as closed and not complying and
  2. Establishments reported for closure.

Optional Inspections:

In the following cases, the inspections would be generated through the computer using pre-decided number tables taking into account the drop in remittance/membership as compared to last quarter as per following parameters:

  1. Remittance drop in excess of Rs. 10,000/- and 15% (weightage of 1:1) (40%)
  2. Membership drop in excess of SO members and 15% (weightage of 1:1) (40%).
  3. All other Units (20%)
  4. Normally not to be repeated in the same year as far as possible.

Question 5: How is the establishment selected for inspection?

Answer:

With a view to simplifying business regulation, a transparent Inspection Policy with system driven triggers equipped with relevant norms and criteria have been formulated for ensuring more accountability, transparency and for minimizing frequent inspections of the same unit.

Question 6: What is the frequency of inspection?

Answer: Normally an establishment may inspection only once in a year.

Question 7: Whether it is possible to see the inspection report on the website?

Answer: No, it is not possible to see the inspection report on the website.

Question 8: What action will be taken against the establishment who are violating the provisions of EPF & MP Act, 1952?

Answer: In case any establishment which is found to have been violating the rules and regulations under the EPF & MP Act, 1952, suitable action as prescribed under the EPF & MP Act, 1952 and allied Schemes frame thereunder may be taken against the said establishment.

Question 9: Whether the Inspection Report can be provided on demand of the complainant?

Answer: Yes, the Inspection Report can be provided on demand of the complainant subject to the exclusion as prescribed under the RTI Act, 2005.

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