Facing Issues with PF Withdrawal After Resignation: Can Anyone Help Me Navigate This?

Dear All,

ADVICE NEEDED: PF Withdrawal

My name is Anoop. I worked as a Sales Manager with one of the biggest corporate life insurance companies. Three months ago, I resigned from the organization to continue my studies. They required a three-month compulsory notice period to complete the relieving formalities, which I was unable to fulfill.

Since January 2007, Rs. 968 has been deducted from my salary as my contribution to PF, as stated in my salary certificate and offer letter. However, they are now claiming that I cannot withdraw this amount and are treating the PF fund as their own.

Is there any provision that allows them to do this? My employee ID number is 10770, and the PF account number shown on my salary slip is also 10770. Can anyone provide guidance on how to resolve this issue? I appreciate your advice and assistance.

Thank you.

Hi Anoop,

First of all, quitting a job without notice is bad. Moreover, your PF fund has to be released through them. When you are aware of a clear clause that you have to give 3 months' notice, why did you not give it? Your plan for further studies would not have been a sudden decision overnight. You should have consulted your immediate Sales Manager for a smooth solution, but I understand you did not do so at all.

At the time of joining, these clauses are mentioned in the employee joining forms. As a manager, I have seen that many new employees do not read the forms clearly on the first day and sign them coolly. Being shy, they will not even ask for the meaning of the clause mentioned there if they don't understand it.

So outwardly, it may appear that it is illegal to withhold the deducted PF. But at the same time, you have signed the clause 'In the event of my resigning without notice period or ......, I agree to compensate 3 months' pay, failing which my PF or any amount payable to me as final settlement can be withheld by the company and .......'.

So the fault is yours. Anyway, please approach a lawyer or PF consultant to find out the solution.

Regards,

Chandru Manager-HR, Chennai

Anoop, this is not good without giving a notice period. In urgency, it's okay. Anyhow, it is not possible to withdraw your PF within 3 months. As per my knowledge, a minimum of 6 months is required to work. It is not possible to contact the PF office directly without having any information from the company. You should ask your HR manager.

Hi Anoop,

As others opined, giving respect and due value to the employment conditions will result in hassle-free relieving and relief. However, the past is the past. First of all, you should recall whether you have been issued any PF annual slip for the FY 2007-08. According to what you've said, the employer has been deducting PF from your salary since January 2007. This will substantiate that you have remitted the deducted PF to the authorities without any withholding. If you have received that, with that reference, you can approach the PF authorities and explain the circumstances that led you to leave the job and request an amicable solution to get your PF refund.

Ram Prasad

Please read: "The PF Annual slip will substantiate that the deducted PF has been remitted to PF authorities by your employer [not by yourself]."

Hi Anoop,

Nobody has the authority to withhold your PF contributions, and it is free from all attachments, whether your PF is maintained by a Trust of the Company or with the PF Office.

If it is maintained by a Trust: You should meet with your HR Department and explain clearly why you left the organization immediately. If asked, you should pay them the salary in lieu of the notice period and make a claim.

If it is maintained by a PF Office: You can submit form 19 and form 10 C. Get them attested by a competent authority such as a Bank Manager or any Gazetted Officer, and then submit your claim.

However, as our colleagues rightly pointed out, it is not fair on your part to leave an organization without serving the notice period.

Best regards,
ab srinivasan

Dear All,

I know I had made an injustice to my profession by resigning without notice. But dear seniors, I hope you all understand the immense pressure of the insurance industry. I orally informed my bosses about this two months earlier. I also submitted my resignation with a notice period to my branch head. At that time, he was under some pressure of retention. He told me to meet his boss, i.e., Territory Manager. The Territory Manager told me not to go, that he would manage everything, and he put my letter in the waste basket.

However, after one month, I was forced to submit my resignation due to a lack of business and to start my studies.

Dear Mr. Anoop,

It is a disgrace for any professional to leave a job without a smooth transition. When it comes to accountability, you cannot prove that your TM has put your resignation in the waste basket. It is therefore suggested for everyone to post an email to your immediate head and mark a cc to the next level of superiors.

I understand your PF is being maintained by the organization's trust. By law, any organization cannot withhold the PF of an employee if he is properly relieved. Therefore, I suggest speaking to your bosses, HR, etc., getting necessary waivers if required, paying the amount in lieu of the notice period (if necessary), and getting your PF processed. Even though if the PF is maintained with the PF office, you cannot withdraw the same until your past employer authorizes it with form 3A.

I would like to correct Mr. Srinivasan. The procedure suggested by Mr. Srinivasan holds good when the employer has wound up the organization (business) and its past employees want to withdraw the PF. In your case, this is just not possible.

Ramasastry Assistant Manager - HR

Dear Anoop,

You need not worry regarding the withdrawal of your and employer's PF contributions. If your employer is not providing you with Form 3A and not attesting your Form 19 & 10C, no problem. Just write an application to the Regional PF Commissioner, mentioning all the details of deductions based on your payslips. The Regional PF Commissioner will then instruct your employer through a letter to provide and attest Form 3A, 19 & 10C.

Always remember, it is clearly mentioned in the Indian constitution that an employer can hold any type of payment except for PF contribution amount; no one can hold the said PF payment.

No matter if the status during your Full & Final settlement shows the amount as payable or for recovery, it is the employer's obligation to provide Form 3A to the PF office along with your PF withdrawal Form 19 & 10C.

No need to worry.

Vijay Srivastava

Hi Anoop,

Everybody is right in their own way, but I want to suggest to you that as per your comment, your PF is lying with the Trust only. Your pension fund would be with the RPFC for claim. Both of them require you to pay only your notice money to the company, nothing else. It is clearly stated in your appointment letter that you cannot approach the PF commissioner or any labor commissioner before you have refunded all your dues. As a Senior IR Executive, I would like to suggest that you clear all your dues and then claim your PF.

Thanks & Regards,
Nvpreet Bansal

Dear PF is deducted and deposited with PF authorities, and legally they cannot stop your PF. You can do one thing: fill out Form 10C and Form 19 for withdrawing PF and deposit them with PF authorities by writing a letter stating that the employer is not attesting it. Alternatively, you can contact the regional Provident Fund Commissioner and inform them that the employer is harassing you by not signing the forms.

Thanks,
J.S. Malik