Byju’s, an online education platform, has been accused of not paying the due provident fund (PF) of its employees. When the employees raised their concerns regarding the same, Raghunathan KE, a member of the employees provident fund organisation (EPFO) board representing the employers, said that the PF dues would be settled.
Provident fund is a type of savings fund wherein a portion of an employee’s salary is deducted and deposited into their respective PF account.
Raghunathan emphasised that the EPFO is committed to ensuring that employees receive their hard-earned money. When an issue regarding PF dues comes to the notice of the EPFO, it thoroughly examines the matter. The organisation also gives the company a reasonable amount of time to present its side of the situation.
Recently it was reported that Byju’s has been delaying PF payments to most employees since October of the previous year. The official data from the EPFO indicates that a significant number of employees had not received their PF payments for April and May, even though the company had been deducting the PF amount from their salaries each month.
Delays in PF payments typically suggest financial difficulties for a company, as it indicates a breach of trust and can lead to potential legal consequences. Employees generally do not regularly check their EPFO passbooks, making it easier for companies to hide delays in PF payments.
Byjus has claimed that it has cleared all the pending PF dues, but the EPFO is conducting an investigation to verify the statement.
The company faced other challenges too when Deloitte, auditor of the firm, and non-promoter board members left the company. Byju’s has also been involved in a dispute with its term loan B lenders, with both parties suing each other in US courts.