Employer Related Issues and Solutions

No.ProblemsHow to deal with problems
1Employers do not register with the Fund that employ employees earning Vt3,000 or more a month Employer must register with the Fund within 7 days when they commence business. Call in at VNPF or write to VNPF for information and forms will be sent to you to complete.
2Employers do not assist employees to register with the Fund Employers must assist employees to register with the Fund within 14 days of employment. Employers must assist their employees to collect the forms at VNPF Office or write to VNPF and ask for the employee registration form for membership.
3 Employers do not complete registration forms correctly Ensure to correctly fill in all relevant data about the business of your employees.
4 Employers do not pay their contributions at all and this is in breach of the VNPF Act,regulations & orders Write to VNPF and inform VNPF if you are not liable for contribution for the month. If you are liable please pay your contribution on time so that surcharges are not levied against you. If the employer has ceased operations, the employer must inform the Fund of this so that the employer will be removed from the records of the Fund and contribution schedule will not be sent
5 Employers do not pay surcharges within the prescribed period or do not pay surcharges at all which is in breach of theVNPF Act. Pay your contributions on time to avoid surcharges. You are given a month to pay your contributions before surcharges are applied. If you are liable to pay surcharges, pay on time.
6 Employers waited for the last day and rush in to pay their employee contributions Avoid paying your contributions on the last working day of the month. It will save you a lot of waiting time and you will have sufficient time to correct any discrepancies identified before re submitting your contribution schedule and payment
7 Employers dispute over surcharges even when they know that they are liable Write to VNPF if you do not agree with the surcharge notices or pay your surcharges to avoid legal proceedings
8 Employers do not inform VNPF of the changes in employment? Inform VNPF of any movement of employee in your business
9 Employers do not maintain records of Contributions Schedules and payments Employers are required under the VNPF Act to maintain records of all its employees and their details including their Contribution Schedules and payments for at least 10 years
10 Employer does not advise VNPF when they cease operations Inform VNPF immediately of the status of your business. e.g. If business has closed down or no longer employs any employees.
11 Employer cheques are post dated, unsigned, cheque amount in words and figure differs, cheque is not dated, cheque amount differs from E1 and E2 forms Ensure the cheques are correct and fully completed before sending it to the Fund
12 Employers submit contribution schedules that include employees with no VNPF number. Employers must ensure that employees are registered. If an employee is not registered, it is the employer's duty to get the employee registered.
13 Employees write employee names and VNPF numbers on the contribution schedules but the VNPF number does not exist Employers must ensure that when employing an employee and that employee claims to have been registered, the employer must request the employee to provide the Certificate of membership.
14 Employers do not submit E2 forms with their contributions payments Employers must submit the E2 forms along with their payments each month.
15 Employers do not notify the Fund of change of ownership Employers must inform the Fund of any change of ownership including change of operations and change of location by completing the Form E3 - Change of Employer Details form.
16 Employers request statements of Account on behalf of their employees who are registered members of the Fund Employers are informed that the Member should be requesting his/her Statement of Accounts as the information contained in it is confidential.
17 Employers do not use the correct contribution rate for deduction of employees contributions Employers are informed to apply the correct contribution rate as follows:(a) From 1 October 1987 to 31 December 1999, rate of 6% of the remuneration (3% by employee, 3% by employer)(b) From 1 January 2000 to 31 December 2000, rate of 8% of the remuneration (4% by the employee,4% by the employer)(c) From 1 January 2001 to date, rate of 8% of the remuneration (4% by employee, 4% by employer)
18 Employers obstruct officers of the Fund in the proper discharge of their duties Employers are informed that obstructing an officer of the Board in the proper discharge of his or her duties is in breach of the provisions of the VNPF Act and the employer may be liable to be prosecuted
19 Employers fail to comply with the notice to produce documents issued under the Board Employers must ensure that they comply with the notice to produce documents that are issued under the VNPF Act.
20 Employers provide false statements to the Board Making false statements to the Fund is an offence under the VNPF Act and the employer concerned can be prosecuted. Therefore employers are requested to provide true and correct information to the Fund.