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krinix (IT)     26 February 2010

Legal Action Aginst Employer Refusing to Sign PF form

It came as a shock this morning when my employer, refused to process my PF withdrawal.
I didn't serve notice period and they are taking this as a reason for not signing the PF form.
I told that my mom was unwell and had to go to mumbai for well over three months. Now they are asking for tickets proof of I travelling and also Moms medical certificates. I am unable to provide these and I am sure irrespective of whether i submit or not, they still have to sign my PF.
I very well know, they are going against the Law. They have no right to do this. I have five years of PF with this company even though i only worked for 6 months with this company, I transferred 4 years of PF of my previous employer. So its quite a lot of money.
I can always have the PF by contacting bank manger or other means as mentioned in the PF instructions form.

I have endlessly read how Employees are taken for a ride by employers when it comes to PF withdrawal.
I have decided to take legal action against the employer. The very reason of my post is to take suggestions from yourself, and know the options I have, to take legal action against My ex employer.
Who can I contact? I am ready to go to a lawyer and thinking about involving media as well. I am really made up my mind to go any distant to get justice and make my case an example for erring Employer's.
And when I take legal action, how likely Am I to win?

Please provide me with help.

Thank you.

 

This is the mail I am sending the head of the company. Please help me with this email.
Correct me where I am wrong.

Hi,

This morning I was at your office for filling up the PF form to withdraw my money. But strangely, you refused to sign and process my PF withdrawal. Mr xxxx the Accounts head told that he has no clearance from the HR head, that is Person YYYY and When I contacted person YYY, she said she cant authorize it as I didn't service notice period and required my travel proof for reason i have stated in the below email i have sent Hr Contact upon I resigning. I would here by like to clarify that irrespective of whether I submit these or not, you still have a legal obligation to sign and process my PF withdrawal form, and there is no rule with PF that states that A person needs to submit any kind of documents. Any ways you have failed to provide me with Relieving letter or Experience certification or even accepted my resignation, and I can understand that this was not processed due to i not serving notice period. But this cannot stop you from processing PF withdrawal as per the Law of PF, and shockingly I was told by Person YYY that she cant process my PF withdrawal because I didnt serve notice period. Its a legal duty of a employer to process the PF after 45 days even if the employee has been terminated or any reason employee doesn't satisfy the companies exit policy.


I am mailing you this details formally, So please let me know the time and date when I can come down there to fill up the form, so that you can process the request.

I am hereby informing you I would not be able to submit any proof and that should not hold you back from this legal obligation of signing and processing my PF amount, upon failure of which, I would have no option, but to take legal action against the company.

I am also forwarding this copy of mail to regional PF commissioner and also a Well know English news channel and a local Kannada channel.

Note : I have only worked from May 2009 to October 2009 at your company and I had transfered My 4 years of hard earned PF money of my previous employer to yours.

Im only going to mail them, when you folks authorize or suggest.



Learning

 18 Replies

V. VASUDEVAN (LEGAL COUNSEL)     26 February 2010

From the facts narrated by you, you are clearly on the wrong side. A proper resignation and acceptance is necessary for the employer to sign out your PF withdrawal form. Further it is not a matter of right that you can claim pf withdrawal as soon as you leave your job. A 3 month period has to elapse and you have to declare that you are not employed elsewhere and do not have any intention for employment (truthful). In case you are employed elsewhere it is proper for the new employer to forward your request to the previous employer for transfer of funds. Hence I would advice that you meet the management and resolve the matter on amicable terms.

vasudevan

krinix (IT)     27 February 2010

Thanks Vasu.

I quit My company in november and its clearly more than 90 days.

And I have sent a proper resignation letter In nov and that wasnt accepted. I narrated that I am not staying bangalore and would not be back for more than 3 months. So i quit without serving notice period.

So why are they not entitled to sign My PF withdrawal. A company has to sign PF  even if they terminate a employee right?

As mentioned clearly, i have met the HR head and even upon begging she refused to clear my name so finance could process my PF. You tell me how hard that is, How hard they are making it.

Surely Employee has more powers than the employer when it comes to matters of these.

 

Any further help would be appreciated. More views and Suggestions , I would be greateful.

 

krinix (IT)     27 February 2010

Furthermore vasu, The company that is refusing to sign the PF papers, I Worked only for 6 months, but to this company I transfered my 4 years of my previous employers PF.

I am in desperate need of money.

krinix (IT)     03 March 2010

Hi Vasu, Any updates on this. i really need help in this.

I have mailed the HR asking them to provide me with the time I can come down there.

No replies from them. I put forward a mail requesting them to understand my situation. The mail carried the subject of I wanting to settle ammicably.

Ashish Ovalekar (Manager Legal & Compliance)     03 March 2010

Hi,

First of all Provident Fund cannot be withheld by a Company, and hence would suggest that you write a Letter to the Regional Provident Fund Commissioner, stating the facts that you have resigned on such and such date. Put the Company in the CC List. The Commissioner would issue a letter to the Company seekin g explaination. Only after the Comoany files the reply would you come to know the reasons for the same.

The Commissioner would take care of the same.

Ashish 

v.k.gupta (advocate)     14 March 2010

Hi,

Good morning ! Mr.Krinix my suggestion is- you fill up the form-19 & 10C, get your signature verified from the Bank Manager of your branch where you kept your SB a/c. and submit the Form to the RPFC office with a covering letter mentioning clearly that my previous employer is not signing my PF withdrawal form hence I got my sign verified from the Bank.  The RPFC him self will get your sign verified from the employer sending your form through the PF Inspector. Even then if you do not receive your PF amount, just make a reminder to RPFC. After that you have option to file a case before the Consumer Court making the party to the RPFC & your previous employer. The consumer court definitely will help you. Also make sure that before filing a suit in consumer court send a legal notice to the RPFC and Employer through any Advocate. For further clarification you can write me on my         e-mail ID - vimal.guptaa@yahoo.co.in.   

Adviser-HRManagement (n/a)     18 March 2010

Dear Krinix,

Wrt your problem, Mr Gupta has given the right suggestion.  While concurringwith Mr Gupta, I may add thefollowing:

 

Under the provisions of EPF Scheme, when a member finds it difficult to get the form attested by the employer, he can get the attestation of any of the following officers & send the withdrawal forms to the Provident Fund office.  It is not always necessary that the Employer only should attest.  You need not be at the mercy of the employer.  You may have some other dispute (notice period, money dues etc), but as long as the employment has "come to an end" by resignation, then you can resort to the following action.  In most of the cases, the EPF Dept clears the withdrawal (by referring to the employer, and notwithstanding any issues which he may raise against the employee, because the EPF dept is not concerned with other issues).

 

 

Manager of a bank.

 

By any gazetted officer. 

 

Member of the Central Board of Trustees. / committee / Regional Committee (Employees' Provident Fund Organization).

 

Magistrate / Post / Sub Post Master / President of Village Panchayat / Notary Public.

 

Wish you all the best.

 

Ravi, Adviser-HRMananagement

ranjan (software engineer)     25 March 2010

Dear All

         I work in MNC in bangalore which has got head office in Noida. I was sent to Hong Kong through Company to work in one of its client place. I was getting salary in Hong Kong, during that time my employer has not credited any p.f amount to my p.f account is this legally correct ? please clearify on what basis company can stop p.f contribuation even though i was working for the company?

 

Adviser-HRManagement (n/a)     26 March 2010

Dear Ranjan,

We need to examine the terms of your posting or transfer (temporary) or deputation to Hong Kong.  Since you say you were paid salary at Hong Kong, on the face of it, no PF deductions/ contributions would arise on such foregin payments.  It would seem your service was wholly lent to a company in Hong Kong who took care of your salary/benefits/taxation etc.  On your return now, perhaps the company may continue PF contributions as an Indian employee.  All these seem legal.  Anyway, you need to highlight terms contained in the letter issued to you while sending to Hong Kong.

Ravi, Adviser-HRManagement

Ardent Ace (Nill)     28 March 2012

I want to file a police complaint agains the employer for not attesting my PF withdrawal forms and sending to local PF office for processing and payment.

Under whar sections of CRPC / IPC can I do that ?

I am fed up with the harassment at the hands of my last employer.

I want to get them booked for treading on me since last 8 years. I am ready to go to any extent in legal framework to at least once get them prosecuted.

This will set up example for other erring employers.

I will make sure their prosecution is highlighted in the National media as well.

Pl suggest the sections of IPC/ CRPC ???

Kumar Doab (FIN)     28 March 2012

Learned Experts/members have given valuable advice. Kindly follow it.

As advice by Mr. Vasudevan you may resolve the matter amicably with employer and obtain acceptance of your resignation, and subsequently work experience/service certificate, relieving letter, form 16, PF accumulation reports, NOC/NDC, FNF statement, payment of dues etc. 

You have already sent an email and have put your employer on notice for going public and perusing legal route.

You may affirm to adjust notice pay as per terms of your appointment in FNF statement and supply you the FNF statement by redg. post and if any amounts are due and payable at your end as per correct FNF statement you shall pay the same by a/c payee cheque favoring the company. (Receipt of which shall have to be supplied to you by redg. post.)

Relieving letter is issued post all settlements. Other than notice pay you have to handover company property, I. Card etc which you may submit under proper acknowledgment. After this nothing should be due at your end.

You have caused abrupt termination and HR is following company policy and instructions as in your case. Be smart and obtain your documents from HR.

You should also retain the POD of PF forms submitted by you and try and obtain an acknowledgment from company. RPFC shall need concrete proof of delivery. Ideally company should attest the forms and submit to concerned o/o RPFC within 5 days and should supply the acknowledgment issued by RPFC to member. You may inform the company to supply this acknowledgment and all other communications by Redg. Post only.

Ardent Ace (Nill)     28 March 2012

Amicably ?? Just not happening in my case. I had to fight a legal battle for the past 8 eight years to be able to get my FnF and notice period salary, which I am yet to get from the company.

My lawyer is arranging to get that based on judgement in my case.

The reality is one of the family members (promoters family) who was also working as merketing head of the company at that time was unhappy with me as being one of 12 state heads I was able to grow my sales 5 times in two years of joining the company.

There was hell lot of insecurity and jealousy in the company against a high achiever that unfortunately included that family member as well because she failed miserably due to her marketing miopia.

I followed my own instinct and grew the sales, whereas the rest of India declined badly. Her ego was badly hurt as I was becoming an eyesore, whereas I should have been given higher responsibility, but .... whatever ....

Her failure is truly reflected when their company was seekin 100 Cr to survive and found oxygen in tghe form of M&M buying the company.


My objective is not only to get my money but also to defeat them.

Kumar Doab (FIN)     28 March 2012

@ Sandeep Kapoor,

The thread was initiated by Krinix and post was for Krinix.

Ardent Ace (Nill)     28 March 2012

oh ok !!


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