I am hoping somebody with some knowledge of Provident Funds can help me.
In 2008 I have come across a situation where an employer hasn't paid over the full provident fund contribution contracted/stated on payslips over to the provident fund.
Assuming an administration error I notified them of the problem - it wasn't acknowledged in any way, but the contributions was correct from the next month onwards. There was however no adjustment/extra payments for the months where the contribution was too low.
I followed up sporadically and every time I got a verbal (e.g. non-written) response that it is being looked into - however after 2 years the issue is no closer to resolution, and more importantly it has become quite obvious that the directors avoid any written communication about this issue.
The amount of money involved is probably less than R50,000 per employee with about 5 employees impacted - with all the employees still employed and being in a small company probably not to keen on legal action - I also doubt whether it will make financial sense.
I am not sure about the law: I assume that a company contribution is part of an employee's salary, and a provident fund is an independent trust.
1) Does the company have any legal grounds for not paying over contributions?
2) And if not - is not paying over the contributions a criminal felony or is it purely a civil matter?
3) Is there any easy way to convince the company to fix it? Knowing it has been brought to their attention for over 2 years now.
4) Does the issue fall under labour law?
5) Does the fact that I have knowledge of this place me under any legal obligations apart from trying to sort it out amicably?
Any help would be appreciated. If I should consult a lawyer please refer me to one!
In 2008 I have come across a situation where an employer hasn't paid over the full provident fund contribution contracted/stated on payslips over to the provident fund.
Assuming an administration error I notified them of the problem - it wasn't acknowledged in any way, but the contributions was correct from the next month onwards. There was however no adjustment/extra payments for the months where the contribution was too low.
I followed up sporadically and every time I got a verbal (e.g. non-written) response that it is being looked into - however after 2 years the issue is no closer to resolution, and more importantly it has become quite obvious that the directors avoid any written communication about this issue.
The amount of money involved is probably less than R50,000 per employee with about 5 employees impacted - with all the employees still employed and being in a small company probably not to keen on legal action - I also doubt whether it will make financial sense.
I am not sure about the law: I assume that a company contribution is part of an employee's salary, and a provident fund is an independent trust.
1) Does the company have any legal grounds for not paying over contributions?
2) And if not - is not paying over the contributions a criminal felony or is it purely a civil matter?
3) Is there any easy way to convince the company to fix it? Knowing it has been brought to their attention for over 2 years now.
4) Does the issue fall under labour law?
5) Does the fact that I have knowledge of this place me under any legal obligations apart from trying to sort it out amicably?
Any help would be appreciated. If I should consult a lawyer please refer me to one!