Facing Unpaid Salaries and PF Issues: How Should I Handle My Provident Fund Now?

Hi all, I was working in a private limited company with headquarters in the US. They did not pay salaries to the employees since January 2012 because of funding issues. So, the PF is also not credited by the company for this duration. However, it was confirmed by the company MD that PF till December 2011 is credited. The company MD asked us to go on unpaid leave since March, and the company office has been closed since then. I left the company in March 2012 and have joined another company.

Handling PF in Case of Unpaid Salaries

Now, in this situation, can you suggest how I should handle my PF? The options can be either to withdraw the PF or to transfer it to the new company account. The issue I see here is that my previous company has not credited the last 3 months of PF (January, February, and March). The transfer form requires the date of leaving the service of the earlier employee.

Seeking Alternatives and Advice

What can be the alternatives in such a case? If anyone has encountered a similar case before and/or knows about the rules to follow in such a situation, please let me know. That would be of great help.

Thanks in advance.

Entitlement to Wages and PF Contribution

Mr. Kulkarni, till the date you worked in the company, you are entitled to wages irrespective of whether they are paid or not. Thus, as long as the employer owes you wages, he is liable to pay the contribution on such wages payable to you. Therefore, you can fill out Form 19 and get it attested by the Branch Manager of the bank in which you are holding your SB account or by a Gazetted officer/Postmaster and submit the form to the P.F. Dept for necessary action.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Thank you for your prompt response. I have a few queries regarding PF withdrawal (Form 19). Will the PF office release the credited PF even if the last three months' PF has not been credited? I am not hopeful about receiving the PF from my company. Will the release occur when my company deposits the due PF? The same question applies to transfers as well. In this situation, would it be better to opt for a transfer or a withdrawal?

Thank you.

I have a query here. If the company does not sign Form 10C and 19, what is the remedy? Please guide.

Resolution for Unpaid PF Dues

Mr. Kulkarni, P.F. authorities are vested with the power to recover dues from a defaulting employer under the P.F. Act since the employer might have defaulted in respect of other employees as well. You need not worry about it. It may take some time, but you will receive the P.F. dues for the entire period of service in the company. Stay in touch with the P.F. department at regular intervals.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

It is better to transfer to the present company. If you are a PF member with more than 10 years of service, you are entitled to receive a Pension Scheme certificate. Otherwise, you can withdraw your amount by applying Form 19 and 10C, duly attested by a gazetted officer.

Legal Closure and Employer Responsibilities

Whether it is legally closed as per the Industrial Disputes Act, 1947, or not? Or is it a sick unit?

It is the responsibility of the employer to remit the PF share of contribution (both employee & employer) every month. If they fail to do so, PF authorities will issue a show-cause notice to the default employer. If the default employer does not remit PF contributions by the given date, they will impose penalties and damages for delayed payment of PF contributions.

Approaching the Labor Court

If the employer does not pay your salary for three months even after your repeated communication with the management, it is up to you to approach the labor court by filing an application under Sec 33(2) to claim pending wages.

Regards,
D. Pannerselvam

Hi All, Thanks a lot for the detailed replies.

@Pannerselvam, the company management claims that they have not yet shut down. They have asked us to go for unpaid leave, but it is more like an illegal shutdown to evade responsibilities and dues. I will certainly explore Sec 33(2) possibilities.

Thanks and Regards.

Non-payment of PF by employers is common. Don't worry about it. They will have to pay eventually. Regarding your question, you can transfer the PF or withdraw the PF amount. In the first instance, they will clear whatever amount is available in your account. The delayed payment by the employer will be sent to your account at a later date after payment by the employer.

Regards,
D. Gurumurthy
LL.HR & IR Consultant.

You can use the EPFiGMS to know the status of your PF.

EPFiGMS - Employees Provident Fund Internet Grievance Management System

A lot of people are suffering from their PF-related woes owing to the attitude of employers as well as the PF Authorities. Mostly, these delays are due to corruption. Although the Government is doing its best to provide information to the employees in a better way, the means of the corrupt are stronger than the measures of the Government.

You may see the following threads:

Problem in Claiming PF Amount

Problem in Claiming My PF Amount

PF Status / Balance - Page 177

PF No

However, still, one can take some measures to get the information:

1. First, you should directly ask your HR department to provide your PF Number and any other assistance you require concerning your PF-related issue.

2. If your employer neglects your request, approach the Regional PF Office and consult the EDP section. (You have to be smart and humble while requesting the EDP section; just tell your company's name, your name, and your Account No. The person will verify your records through the computer and will let you know the exact status as of the date.)

3. All of you seeking PF-related help may use the following link, which will take you to the EPFO's newly launched "Employees Provident Fund Internet Grievance Management System (EPFiGMS) portal: EPFO <link updated to site home> or go to Home Page.

This is the new service started by EPFO for the online redressal of grievances of the members of EPFO and covers the following types of queries:

- Withdrawal/Final Settlement of PF (Form 19/20/31/10C)
- Transfer of PF Accumulations (Form 13)
- Scheme Certificate (Form 10 C)
- Settlement of Pension (Form 10 D)
- Issue of PF Slip/PF Balance
- Payment of Insurance Benefit (Form 5 IF)
- Cheque Returned/Misplaced
- Other (Not covered above)

4. Also, see the following blog at:

EPFiGMS – EPF i-GRIEVIENCE MANAGEMENT SYSTEM - Blogs - RTI INDIA

EPFO has introduced the SMS-based communication platform - Blogs - RTI INDIA

PF accounts idle for 36 months or more months to fetch no interest - Blogs - RTI INDIA

5. EPFO has launched a new system for getting PF updates through SMS if your account is still operative: EPFO <link updated to site home>

One can also see your claim status from the following link. Claim status of any EPFO office can be seen: EPFO <link updated to site home>

6. For other details, the following link can be tried: EPFO

7. Alternatively, you can file an RTI Application with the concerned RPFC and seek necessary information.

You stated that you left the company and joined a new one. Have you resigned, or are you still on the rolls of the old company? If you have resigned and joined a new company, it is better to get your accounts transferred to the new company (as explained in Post #6 above). Do not worry about the unpaid salaries. That will be taken care of by the EPFO (as explained in Post #5 above).

I was working in proprietorship firms. I want to withdraw my P.F. Which form do I have to submit? I have my payslip and P.F. number. Please guide me on how to process.

Regards, Susanta Roy.