Type:Trigger Frequency: Quarterly

Action to be taken:
On transfer of an establishment from one employer to another through sale, gift, lease or license or in any other manner, the old and the new employer will be jointly and severally be liable to pay all contributions due under the act for periods before the transfer. The liability of the transferee is limited to the assets obtained by him under the transfer

Audit Requirement:
Where an establishment has been transferred from another employer, has the liability for all dues under the PF Act and its schemes been assumed jointly with the old employer >

Supporting Documents:
Written Confirmation of Compliance

Related Triggers:
Transfer Of Establishment/Undertaking

Related Keywords:
Provident Fund
Transfer of Undertaking

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Related Sections:
Employees Provident Fund and Miscellaneous Provisions Act, 1952
17-B:Liability in case of transfer of establishment:
Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision of this Act or the Scheme or the Pension Scheme or the Insurance Scheme, as the case may be, in respect of the period up to the date of such transfer:
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.