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Air India Engineering subsidiary defaults in paying employees PF since march 19

Air India Engineering Services Limited (AIESL) ,a subsidiary of Air India has committed default in depositing PF contribution shares  to its PF trust -Air India Employees Provident Fund Trust (AIEPF), since March 2019 as per report published in National Herald.

The undeposited amount which is part of the salary is estimated to be around Rs 200 crore.

Several employees of the AIESL alleged that the AIESL management is planning to announce a 20 per cent cut in their salaries in order to deposit the fund from the back date probably to shift the load of PF contribution to employees.

 The management had announced a 25-30 percent cut in March this year. Previous salary has not been resumed yet. On top of that,  planning to cut 20 per cent more will make employee more vulnerable  and difficult to maintain their livelihood.

At present, there are 5000 employees working with the company which has been put for the sale by the government along with Air India. Despite several attempts, no deal could be finalized as the investors/interested parties are not willing to share the debt /liabilities.

As per sources, not only did the AIESL fail to deposit the PF, but gratuity of those who retired in October 2019 has also not been paid yet.

“It is more than nine months since I retired from services but my gratuity, which should be about Rs 14-15 lakh, has not been paid,” said another employee.

Significantly, the AIEPF secretary, Ruchira Upadhyay on June 7 asked AISEL to deposit the outstanding amount and “settle the statutory obligation.”

In a letter addressed to the CFO, Upadhyay said, “Any delay in payment of the PF dues to the Trust shall be treated the way the delay in payment of provident fund dues is being treated by the EPFO and the interest and penalties will be charged as per EPFO Act”.