Provident fund compulsory withdrawal by company

The precise reason for such a dictatorial conduct of the establishment needs to be understood.

You may elaborate the reasons.

The purpose and aim of PF is to build a retrial corpus and have some money in hand during post retrial life.

The withdrawal is discouraged.

Withdrawal of EPF amount after a job change is illegal.

Employee provident fund money can only be withdrawn only if the member has no job at the time of withdrawing EPF and if 2 months have passed.

If a member of the Fund goes from one establishment to another or from one region to another, the balance of his Provident Fund is transferred form the old account to a new account in the new establishment. {Section 17 & Para 57}

On the application of the statutory Provident Fund Scheme to an establishment, the accumulations in the private provident fund in that establishment standing to the credit of the employees who become members of the statutory Provident Fund must be transferred to the statutory Provident Fund. The accumulations will be credited to the accounts of the employees entitled thereto in the statutory Provident Fund. {Section 15}

 

 

Dear Sir, Thanks for your prompt reply. I do not know the exact reason (may be because of they will seek permanent employment on the basics of PF details) for compulsory withdrawal of PF during separation, as they are workmen they do not know there rights. I have read the PF Act but nowhere it is mentioned it is illegal to withdraw PF after separation or I have not found any court case regarding aforesaid matter. If you can give any precise judgement by any court regarding the matter or any clause in PF Act with restrict the same it will be great help to me and many other workmen. I further want to state that the separated employees are joining immediately at other location (same organization)

You have posted that:

------“I have read the PF Act but nowhere it is mentioned it is illegal to withdraw PF after se”aration"

You may pursue the “Declaration of Non Employment” to be made on the From19 for withdrawal and Para 69: 1 (e) in The Employees’ Provident Fund Scheme, 1952.

-------“I further want to state that the separated employees are joining immediately at other location (same organization)”

Where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment. {Section 2(A)}

The point to ponder is that “OTHER LOCATION” of the same organization is covered or not?

 

The Employees’ Provident Fund Scheme, 1952

69. Circumstances in which accumulations in the Fund are payable

to a member

(e)  ………………………

(ii) where a member is transferred from a covered factory or other establishment to another factory or other establishment not covered under the Act, but is under the same employer;

 

You may visit the nearest PF office and meet RPFC in person and discuss your concern face to face. 

The PDF file of Form 19 & The Employees’ Provident Fund Scheme, 1952 is available at EPFO website:

www.epfindia.gov.in

 

you have a right to transfer of fundsand it is beneficial to subscriber.

 

for withdrawal you hve to give a false declaration of  not having been employed.