HomeMoonlighting Check via EPFO Records: Five Things to watch out forPayruleMoonlighting Check via EPFO Records: Five Things to watch out for

Moonlighting Check via EPFO Records: Five Things to watch out for

1. Mere Service History Overlap is not a case of Dual Employment – 

However, Service history may overlap for many other reasons like

    a. Previous Employer Did not update date of exit.

    b. Previous Employer continues to deposit PF, for the balance notice period.
    c. Lag in EPFO record update.
    d. Any other administrative reason.

Hence, concluding that employee is engaged in moonlighting merely on service history overlap would be amateurish

2. How to Identify Dual Employment Cases

In order to arrive at more concrete cases of dual employment, Overlap of more than one month coupled with employee name appearing in ECR of the other company should be watched our for. 

Payrule, through its unique double- check mechanism,not just detects more than one month service history overlap but also verifies whether the name of the suspect candidate is appearing in the monthly PF return during the overlapping months of the ‘Other Company’. Unless, both the conditions are met, the employee should not be treated as a moonlighting case.

3. Watch out for ‘peer companies’ profile and headcount.

Apart from above, for the dual employment cases, the management report should also highlight the name of the other company where employee is simultaneously engaged. The location of the company, the total PF headcount etc through the EPFO database.

4. Watch out for Present and Past Cases

The employee may not be doing two timing currently, but we should always look out for service history overlap in the past, specifically during the lock-down period which may bring to fore the suspect cases who may be susceptible for dual employment. These are the folks who have a tendancy to indulge in moonlighting and regular check is suggested.

Payrule, database suggests that around 3.5-4.5% of the candidates scrutinized have engaged in moonlighting in the past.

5. Dual Employment through other means

Dual Employment Check through EPFO data base can be indicative but not comprehensive as employee may engage in dual employment through other modes like

    a. Working in Consultant role
    b. Opting to opt out of PF from the other company
    c. The other company not being under PF compliance
    d. Drawing salary in the name of family member like spouse, parents, etc 

Payrule, Channelizes its subject matter expertise and professional approach to deliver comprehensive and professional Dual Employment Check report to corporates.

CA Darshan Balai

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