Hi,
I switched from an MNC to a startup company in 2018. This company does not contribute to the EPF.
I am seeking a job change at present. Will this cause any joining blocker in the new company?
If yes, please guide with the remediation actions.
Warm Regards,
From India, Jaipur
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I switched from an MNC to a startup company in 2018. This company does not contribute to the EPF.
I am seeking a job change at present. Will this cause any joining blocker in the new company?
If yes, please guide with the remediation actions.
Warm Regards,
From India, Jaipur
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That is not an issue for the new company where you joined, but the HR or the Personnel Manager can raise a question: why didn't you contribute for four years? The answer will, obviously, be that the company where I have been working since 2018 is a small company with less than 20 employees and hence not covered by EPF. It is not an issue, but the experience of a person from a small organization is always considered to be very negligible. Organizations would always prefer to have persons from reputed establishments, whether in Sales, Operations, HR, or Accounts. The experience gained from an organization having a large number of employees weighs more than that from a small organization. This is very significant when you join an HR team where the number of employees handled counts much.
Now, if your establishment had more than 20 employees but that company did not 'believe' in statutory coverages and contributions, that also will be a negative remark on the company. Moreover, it is not just one or two years but four years, and that should not be ignored.
Coming to another scenario, the new organization, per se, is not concerned about the PF applicability of your previous company. But they are concerned about whether you had a Universal Account Number (UAN) for PF. Since you have a UAN from your first company, i.e., the company you worked for before joining the immediate previous company in 2018, that can be provided in the form 11 declaration. Since that UAN is active, you can continue that account with the new member ID created by the new company. Here also, the only risk is that you have to give the name of the first company and not the immediate previous company in the form 11.
From India, Kannur
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4490Now, if your establishment had more than 20 employees but that company did not 'believe' in statutory coverages and contributions, that also will be a negative remark on the company. Moreover, it is not just one or two years but four years, and that should not be ignored.
Coming to another scenario, the new organization, per se, is not concerned about the PF applicability of your previous company. But they are concerned about whether you had a Universal Account Number (UAN) for PF. Since you have a UAN from your first company, i.e., the company you worked for before joining the immediate previous company in 2018, that can be provided in the form 11 declaration. Since that UAN is active, you can continue that account with the new member ID created by the new company. Here also, the only risk is that you have to give the name of the first company and not the immediate previous company in the form 11.
From India, Kannur
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