There are several companies which are running a private trust in order to manage the Provident Fund of Employees. However, there are some companies which are not being compliant with the laws laid by the government. In one of the reports, the government revealed that last year, there were as many as 700 companies which failed certain compliance checks.
These companies were sending out a notice and an explanation was demanded in order to get the issues fixed. In some of the cases, the government also took major actions against the companies who failed the compliances. In many of such cases, the government also canceled the license of the some of the firms to maintain the private trust for the provident fund. This has certainly increased the transparency in the system.
The main reason to check the compliance was to ensure that the employee continues receiving all the benefits even when the company is running in loss. The process of Online filing of Provident Fund Return is certainly helping the EPFO in monitoring the ground situation and it is also keeping the employers on the toes to ensure that the employee provident fund is deposited on time.
As of now, it is mandatory for the companies to file the PF return online but there are some changes that were initiated by the government which helps them in monitoring the trusts owned by the private companies. In our opinion, the move is certainly benefiting the employee of the company and it is better to have checked on different companies in order to ensure transparency and fair process in terms of provident fund deposits for the employee. As per many analysts, this is a really good move and it will help the nation in many ways.