Is It Legal for Employers to Withhold Their PF Contribution? Seeking Advice on Final Settlements

Dear All,

My friend was working as a Software Engineer in Kerala. After securing a good job in the UAE, he resigned from that firm with one month's notice as per the contract. When he was issued the offer letter, the CTC included PF contribution from the employer. Additionally, my friend was contributing Rs. 1000. However, at the end of his employment, during the final settlement, they only provided the amount from his side. Is this legal? Is he eligible to receive the contribution from the employer? What should we do? Please advise.

Note: Employment duration was 1.11 years.

Suresh M.G 🌟

Hi Suresh,

The PF amount is not included in the F&F. He needs to submit Form 10C and Form 19C (signed by an authorized person from the company) at the EPF office to withdraw the employee and employer contributions.

Dear Satya,

Is there any legal provision if the employer does not make prompt payment, like not getting a subscription in the EPF office?

Hi Suresh,

I am not aware of the legal provisions on this issue. I hope someone from the group can help you with this matter. Normally, the employer has to sign the forms and affix the company seal; that's it, nothing more than that. You need to provide the bank account details in the forms. Once you submit the form, within 45 days, the amount will be credited to the concerned person's account.

There is no provision for the employer to give the PF amount directly to the employee. (If I am wrong, please correct me.) It would be better to ask your friend to thoroughly check the details.

Thank you.

Hi,

As per the PF Act, you can withdraw the PF and Pension Fund from the PF Office after submitting Form 19 and 10 C duly signed by the employer.

In this case, it is evident that the employer is not submitting the PF amount either to the PF Office, or they have a separate PF Fund. Firstly, you need to fill the PF withdrawal forms and submit them to your employer. If they are not depositing the amount into the PF Fund, they may refuse to sign the forms. In that scenario, write a letter to the PF Commissioner stating that your company is deducting PF from your salary but not depositing it. Attach your salary slips for the last 2-3 months as proof.

If the forms are signed, submit them to the PF Commissioner's Office. The amount will be directly credited to your savings account, which you have provided in the forms.

Regards,
AMATYA

Dear Amatya,

First of all, thank you so much for the information. Can you please tell me what a person has to do if he is in the UAE so that PF forms 19 and 10 cannot be signed by the employer? Do you have any email address for communication?

Thanks and Regards

Hi Suresh,

Since he is in the UAE, please send Form 19 and 10C to him and ask him to fill out the form and sign it. Someone on his behalf can then submit the form to his previous employer.

When submitting the forms and receiving acknowledgment from them, this will serve as proof that his forms have been submitted. Only after obtaining proof can you follow up with them about the status.

AMATYA