Can I Claim My Employer's PF Contribution After Resigning Before 5 Years?

Hi,

I had earlier worked for more than 4.5 years for a Central PSU which has more than 600 employees and has been making profits. It has its own PF trust. 10% of my basic pay was deducted during my tenure, and my employer was also contributing the same amount. (My basic pay was more than 7500 at my joining and my last basic was 15000 at the time of resignation). I have recently resigned and joined another company.

Upon my resignation, my old company settled my PF by giving me a check that consisted of only my contribution along with interest on the same. When I inquired about the employer's contribution, they referred me to a rule established by the company stating that "employer's contribution shall only be given if an employee works for a minimum period of 5 years in the company."

I would be grateful if you could clarify the following points:

1. Is there any provision for PSUs (Profit-making) to establish their own rules when the PF is managed by their own PF trust, superseding the Government rules?

2. Is there any rule as per the act that allows the employer to specify a timeframe for making their contribution?

3. Can the trust itself settle the PF amount without the employee's consent (considering that employees always have the option to transfer the fund to a new employer), as I heard that PF is typically settled only by EPFO?

In short, can I demand the employer's contribution despite their internal rule not permitting it before completing 5 years of service in the same company?

Regards,

RPV

Dear rpv,

Your points are clarified as follows:

1. PF Trusts generally make their own rules which are approved by the PF Authorities. The thumb rule is that you can override Government rules to make it more beneficial for the employees, not the other way around.
2 & 3. The answer is no.
In short, you can demand the employer's contribution.

KKT

Is your company a government PSU or government department? Please note that there is a different PF act, different from EPF & MP act, applicable to government employees, which has similar rules.

What Bhavik is saying is correct, that Government Departments have their own PF Rules. However, in the case of Government Departments, the employer does not contribute anything towards PF as Government employees are entitled to a pension. In this case, as RPV has suggested, the employer was also contributing towards PF. Therefore, it does not seem like a Government Department.

Now, let us suppose that there was no Trust, then all the money would have gone to the PF Commissioner, and then RPV would have become entitled to the employer's share as well. The provisions of the Trust cannot be less favorable to employees than Government Rules in this regard. Following this logic, RPV becomes entitled to the employer's share. Despite this, if the employer refuses to part with the employer's share, RPV should take up the matter with the PF Authorities.

KKT

Can you provide me with the notifications for all the labor law amendments that have taken place during the years 2007-2008?