Is HR Responsible for Ensuring Ex-Employee PF Clearance? Seeking Your Insights

Hello Seniors, I would like to know if it is the responsibility of the HR Department to follow up until the clearance of the PF amount of the ex-employee after submission in the proper ways to the PF authorities?

Regards,
Madhura P.

Hi Madhura, after the submission of claim forms, just give the employee a copy of the acknowledgment slip. Later, let them follow up. If you have time, then why do we have to take the risk and follow up on those?

Employers are required to provide the supporting documents for the PF withdrawal process. PF forms like Form No. 10C and 19 need to be filled out by the candidate and should be attested by the employer. After this, the follow-up can be done by both or either party. It is always good to have information on the PF to provide any further assistance to former employees.

Regards,
Madhura

Thank you for your guidance. As we are doing the same, we are completing the formalities within the time limit and ensuring the proper submission of documents required by PF authorities for withdrawal. However, ex-employees never had faith that we had completed the formalities properly. They were blaming the HR department for the delay in receiving their PF amount, when in fact, 99% of the delay is from Government Authorities.

Can Ex-Employees Submit Their PF Forms Directly?

Can we give their PF forms to them to submit to the PF authority so they can follow up on their own?

Regards,
Madhura

Yes, we can do that as well. However, before providing it, it is advisable to keep a copy of those documents for your reference too. It is common for such incidents to occur with government officials, and we are being wrongly blamed. Therefore, I have also made a change, as I used to provide all the documents to employees only. Let them deal with the PF department.

For the sake of saving paper, you should scan and keep a soft copy.

But they think that as we are deducting the PF from their salary, it's the responsibility of the Management/HR department to ensure they receive their money from the PF department. I believe most employees in many organizations think the same way.

Anyways, I will also try to change these things on my end. Thank you, Mr. Jeevarathnam P.

As you mentioned that employees blame the HR Department for deducting the PF from their salary, it is the responsibility of the HR department to clear it as soon as possible. It is true that we have knowledge of their transactions and the process to resolve this issue as we possess all the necessary details of the employees. In case of any delays, we can guide them on the simplest way to resolve it, as we too will be former employees of the organization someday. The HR department stays in contact with the relevant department heads to provide assistance, but the entire responsibility cannot be solely assumed.

Regards,
Umesh

I would suggest that you complete all documentation and hand it over to the ex-employee. Let them submit the documents to the PF authorities and follow up on the same. If there are any issues from the employer's side regarding PF clearance, then you can surely assist them. Do not take on the full responsibility, as I have faced numerous problems in the past.

It is the primary responsibility of the company to get the form filled, duly signed along with necessary enclosures, and forward the same to the PF office. Once it is submitted and accepted, it is not the responsibility of the PF office to settle the amount. In case of any clarification, if they return the same, the company has to forward it again, duly clearing their doubts or attachments, etc.

Please inform the ex-employee that it was submitted to the PF Authorities on a specific date, duly providing the copy of the forwarding letter, and tell them that hereafter it is the responsibility of the PF office to settle the amount. The company is in no way responsible for the settlement or influencing the PF Office.

Once you inform them as above, they will not bother you. Let them go and contact the PF office and follow up. Nowadays, the PF office is sending SMS regarding settlement status. Therefore, you need not worry about this in the future. Also, please note that it is the responsibility of the Administration/Finance department to send the form to the PF Office and not HR.

Regards,

After submission of settlement forms, our responsibilities are over. At the same time, we have to submit them in a proper manner. Form 5 and Form 10 need to be submitted. Mainly, the remittance needs to be made. Settlement will only be processed within 30 days after fulfilling these conditions.

Thank you.

Thank you for sharing your knowledge on this matter. The issue is still unclear as some people are saying it's the responsibility of the company's HR department, while others suggest filling the form properly and giving it to the ex-employee for submission to the government authorities.

Regards,
Madhura

There are two options that the company HR can consider: submitting the form directly to the PF office or having the employee obtain the signature from the previous employer on all forms (19 & 10C), as well as Form 3A, and then submitting the form directly to the PF office.

However, choosing the second option and giving the form to the employee might lead to a loss of goodwill for the Company/HR department. This negative impact could spread throughout the company via the departing employee or through their connections, causing unnecessary issues among employees. Negative information tends to spread quickly.

It is advisable to have the form filled out by the employee and then submit it to the PF office. Keep a scanned copy of the PF acknowledgment. If any employee raises a query, simply send the copy to the former employee's email address. Showing proof of submission will generally prevent further inquiries.

As an HR professional, it is convenient to regularly follow up with the PF office authorities for the status of the submitted forms. Having the employee's PF number allows you to check the claim status and provide updates to the employee when requested.

Thank you.
Regards