OPA AT YOUR SERVICE

Non payment of Provident Fund

Question: I have been employed in a company from 1.5.2005 to date. No appointment letter given. I was 66 years in 2005. The company states that I am on contract. I am paid Rs. 10,000 monthly.

No EPF deductions are made on my salary to date. Further, I have to work on Sundays, Poya and other holidays. Mercantile (Vesak and X’mas days too) without any extra payment.

The company officially has written to the Government Institution that I am the storekeeper of the company. I have documentary proof.

Please answer:

1. Whether I am entitled to EPF

2. And what amount EPF to be deducted

3. Any extra payment due to me on working on Sundays etc.

I am in need of above very early.

H. Perera, Paddukka

Answer: Many companies exploit retired persons’ or person over the age of 60, calling it contract employment.

If you demand all your entitlements, they would rather employ a younger person.

It is this risk of a retired person losing his job that is being exploited.

Your are definitely entitled to EPF, ETF, overtime and day off where applicable under the Shops and Office Act even though you may be on contract.

Your employer has to contribute 12 percent to EPF and three percent to ETF whilst your contribution will be eight percent to the EPF only.

You have to be paid overtime (one and a half times your normal rate of pay) and a day off for working on a Sunday.

The day off in the following week. Working on a Poya day you should get overtime only.

Working on statutory holidays you are entitled to double OT (twice the normal rate of pay) or overtime (1 1/2 normal rate) and a day off during the course of the year.

You can obtain further clarification from the Labour office in the area of your work. You may run the risk of losing your contract.

Delay in widows’ pension

Question: I am writing this in reference to the above subject regarding my aunt G. K. Mather living in the USA bearing W&OP No. 82/90854 which appeared in the Daily News of August 27, 2009, wherein you have stated in the answer column, that the delay in her pension was due to the want of the marriage certificate registered and signed by the Registrar General’s office.

The above marriage certificate referred to was sent by Registered Post No. 5496 to the Director of Pensions on August 29, 2009.

My aunt informs me, that the Pensions Department informed her, to send them the name of the Bank and account number to which the pension should be credited, and it is more than two months since she responded to this request for which she has not received any reply up to now.

As you have stated in your answer column of the CDN of 27.8.2009, to contact you if there is a delay in the pension after sending the above document, I will be grateful if you could look into this matter and help in expediting the payment of my aunt’s pension.

Thank you for the services you are rendering through the column of the ‘OPA at Your Service’ CDN.

Dr S. J. V. Richards, Wellawatte

Answer: Sorry for the delay in our reply as it took sometime to get the real problem if any with this case.

We even called for copies of correspondence between the Pensions Department in Colombo and the High Commissioner for Sri Lanka in the USA as well as letter sent to Mather.

The Pensions Department has sent a letter on September 18, 2009 to the High Commissioner with a copy to Mather. The Pensions Department confirms having received the original certificates of marriage. However they have called for three more items from the list of 11 items. The items required are:

(1) Duly perfected data entry form signed by the widow and certified by the High Commission.

(2) Two photographs of the widow certified by the High Commission to be submitted along with the data entry form.

(3) An affidavit to prove the change of name from maiden name to married name. Affidavit to the effect that it is one and the same person referred to by both the maiden name and the married name indicating both the names.

According to the Pensions Department these three items are awaited to finalize the widows’ pension.

Arrears of W & OP pension

Question: My pension No is W48189, I was given an increase on the above noted W&OP Pension with effect from June 2009 as per Pension Circular Nos 6/2004 and 2/2006 but without any arrears. When I contacted the Colombo Divisional Secretariat repayment of arrears, I was informed the file had been transferred to the Moratuwa Divisional Secretariat and hence they were unable to give any details.

I contacted the Moratuwa Divisional Secretariat and was informed that if there were any arrears due to me the Colombo Divisional Secretariat would have advised them.

Please inquire into this matter.

M. M. Alles, Moratuwa

Answer: We discussed your matter with the Pensions Director.

The Director Pensions has requested the Moratuwa Divisional Secretary to look into your arrears payment.

The Colombo Divisional Secretary has advised the Moratuwa DS as per the copy of the letter sent by you dated 9.10.2009 stating that action has been according to the pension circular No. 6/2004 and 2/2006.

What they must have referred to is the adjustment to the pension and may have overlooked the arrears.

Although the Moratuwa DS will check on this with the Colombo DS, you are hereby requested to make a written request addressed to the Moratuwa DS for payment of your arrears.

You may copy your letter to the Colombo DS and the Pensions Department Director, Maligawatte, Colombo 10. Please keep us posted of the outcome if not for follow up.

Entitlement of 20 percent bonus on interest for senior citizens

Question: I am 83 years old and have a Savings Account in the Commercial Bank. I wish to know whether I am entitled to 20 percent interest on my savings account?

A. A. Gomez, Moratuwa

Answer: The payment of 20 percent bonus on interest for senior citizens is a government initiative. Consequent to the steep drop in interest rates the President, on the request of senior citizens granted this as a compensation for loss of interest by almost more than 50 percent.

This bonus will be paid by the government through the Central Bank of Sri Lanka.

All licensed banks both public and private will pay their senior citizen account holders after claiming it from the Central Bank. For February 2010 bonus will be credited to the account during March 2010.

Your bank should have your NIC number if not already identified as a senior citizens account.

The Commercial Bank confirms that you will be paid if they have your NIC number. Some private banks have already forwarded a declaration form to be completed. The total bonus per year cannot exceed Rs. 120,000 per person.

Shop and Office Employees Act

Question: This has the reference to your answer appeared in the CDN of February 5 in the OPA page.

Would you please let me know the numbers and the years of the: Shop and the Office Employees Act, Shop Act.

For enable the readers to purchase them from the Publication Bureau.

P. W. Kulasinghe, Mawanella.

Answer: The Shop and Office Employees Act was passed as Act No. 19 in 1954. Thereafter from time to time there have been certain amendments.

We understand that you can obtain/purchase a copy of this Act from the Labour Secretariat Library, Kirula Road, Narahenpita.

A copy is available in this library for reference as well.

We understand that it is very unlikely that you will be able to get a copy of this from the Publications Bureau.

Non payment of arrears of pension LGS pension 9836

Question: I opened up correspondence with the Director General Pensions since 16.10.2007.

The replies I have got are P2, P6, P15. Though they say it has been paid, I have never received this money. They do not say the manner in which way they have paid.

Then I wrote a personal letter to the Director General, vide P18. I wrote to Public Administration and Home Affairs Minister and finally to the President.

Such letters have all been forwarded to the Director General of Pensions. But he is dead silent on this matter up to now.

Sir, the silence of the Director General, not giving me an interview and the varying replies, presumes me to think that there is a misappropriation in this.

Please be kind enough to see these correspondence and help me in this matter.

P. Wijayagoonesekera, Nugegoda

Answer: Sometimes it is difficult to solve a problem even if you take up the matter with the highest authority. It is difficult to find commitment in the government service, although they provide answers adequate, enough to cover themselves without solving the problem.

We contacted the Pensions Department and according to them, this is a matter for the local government service pensions section, although they have replied or responded to letters on your matter.

We then contacted the Accountant Herath on telephone 2342525. She requested that you call over at their office at the Pensions Department, Maligawatte, Colombo 10, along with your Savings Pass Book or Bank statements for 2007 commencing January 2007.

They say it is easier to check from your pension bank account the receipt of the second 50 percent of the arrears. If you have not received it, it’s only through your bank account you can prove them guilty.

We suggest that you take your bank statements for 2006 and 2007. Keep us informed of the outcome of your meeting.

Renewed NIC not received yet

Question: I forward herewith a copy of the relevant page in the Daily News of 3.12.2009 in which your reply to my appeal was published.

While sincerely thanking you for the action taken, I earnestly appeal that the Commissioner be reminded to issue the NIC at the earliest. Excuse me for the inconvenience please.

K. Rajaratnam, Trincomalee

Answer: Good that you wrote to us again. Although in November 2009, when we made inquiries on your behalf we were told that it will be sent in early December it has not been ready yet.

You are very unfortunate as it has been delayed again. The excuse given is that your wife’s NIC had a wrong date of birth when compared to the birth certificate now sent by you. As this is unusual there was hesitancy on the part of those involved in changing it. Also change of name from maiden name to married name made it more complicated. Complicated cased tend to be put aside and straight forward application attended to. We spoke to the Commissioner who has agreed to expedite your wife’s NIC although he is not willing to commit a date. Let us know if you don’t receive it by end March 2010.

Renewal of National Identity Card

Question: “Thank you very much once again for your service rendered enormously through the CDN-OPA at Your Service Column.”

I am the holder of National Identity Card bearing No. 602951898 V. As my NIC became an oldie, I submitted the same to my area Grama Niladari - 166 within the jurisdiction of the Divisional Secretariat, Kattankudi, on 29,12,2008 so as to get a new NIC. Renewal application number is CB 664057/166.

One year has elapsed since I submitted my NIC to the Grama Niladari, but still I have not received the same.

We all are aware of the NIC which is one of the greatest vulnerabilities in the security system of our country and that the NIC is a major evidence to prove the personal identity in day to day life.

In view of above, please kindly help me to get the NIC without further tardiness. Once again I seek your kind assistance in regard of this.

I. Atham Lebbe, Kattankudi

Answer: We contacted the office of the Registrar of Persons and the good news is that your new NIC was prepared on January 22, 2010 and would have been dispatched the following day or so. It will be sent to the Divisional Secretary, Kattankudi-Batticaloa. You can either collect it directly from the Divisional Secretary’s Office or wait for the Grama Niladari to collect it for you which may cause further delay. The bed news for all of us is that it has taken almost 24 moths (two years) to get your NIC renewed. This is quite unusual despite the fact that there were priorities such as “O” Level students NIC’s being expedited.

Interest chargeable and recovery of overdue loan

Question: Please clarify: Under the Banking Recovery Act whether a bank can claim accumulated interest which amounts to more than 100 percent of the actual amount obtained as a TOD loan.

The defaulter being a Limited Liability Business, is it legal for the Bank to file action against an Individual Director for recovery? Whereas the remaining Directors of the Company including the MD has not been made accountable or issued summons.

M. Nabeer, Wattala

Answer: Yes, the bank has the legal right to recovery interest even if the interest amount exceeds the capital. Often in the case of default loans, the interest component exceeds the capital. Also it is compound interest as such interest is charged on overdue interest as well as on the capital. However, at the time of settlement the interest payable can be negotiated as the Bank too will be keen to recover a bad debt.

It is not legal nor it is usual for the bank to file action against an individual Director for recovery. It is company that is liable as such action should be against the Company, failing which the Bank may file action against the Board of Directors. However, if you had signed as a Guarantor for the loan taken by the Company, then the Bank can file action against you. Suggest you obtain legal advice from a Lawyer.

Tabulation of interest on Provident Fund collection

Question: I refer to my request that appeared in Daily News of 26th instant and the reply. It would appear there is ‘Injustice’ if the Government is going to take the benefits of the penalty without passing on to the member for the loss of interest on the accumulated provident collection.

May I request you to take this matter up with the relevant authorities concerned.

J.V.R. Dias, Wattala

Answer: It appears as if we have disturbed a hornets nest. Yes, it is correct as per our answer in the Daily News of November 26 that if an Employer delays or defaults to remit the EPF or ETF contribution, the Employee will lose the interest which he or she would have earned otherwise. We too agree that it is fair that the employee gets the interest lost from, out of the Penalty charged on the employer. Only thing is calculation of such interest from the due date will be a major and complicated exercise for the Department of EPF and ETF.

However as the law stands this penalty is revenue for the Government, like most penalties and there is no legal provision for the Government to share any penalty with any affected party. There has to be an amendment to the Labour laws. We suggest that you as a member of the public or as an affected party write to the Commissioner General of Labour, Labour Secretariat, Kirula Road, Narahenpita.