Facing Repeated PF Withdrawal Rejections: Can I Take Legal Action Against My Former Employer?

I joined company A (I am not disclosing) in 2001 and worked for 4 years. I had a PF Account, AP2000 (e.g.), and left the company in 2004. I requested a PF withdrawal and got it settled.

I joined the same company again in 2005 and worked until 2007. During this time, instead of assigning a different PF number, they assigned me the same PF Account, i.e., AP2000.

I submitted the PF withdrawal soon after leaving the company. However, my PF withdrawal form kept getting rejected, and I was never informed of the reason. It's been 3 years since my PF account got deactivated, and I am not receiving any interest on this.

I acknowledge that this is my mistake. I would like to know if I can take any legal action against the company.

You can surely file a case against your employer. It is the statutory obligation of the employer to timely deposit the PF amount of its employees with the P.F. department, and the P.F. department is also under obligation to ensure compliance of the same from the employer. In case the employer fails to comply with the deposit of contributions, the employee has the right to make a complaint to the concerned office of the provident fund department. Upon receiving the complaint, the department is bound to take action under Section 7A of the Act to recover the amount from the employer and initiate criminal action for embezzlement of funds. If the department fails to take any action, the employee/employees can file a writ of mandamus in the Honorable High Court seeking a direction to command the department to ensure compliance with the Act from employers.

Thanks & Regards,
Srilakshmi Korukonda

Thank you, but I am not sure in my case if the employer has contributed. The issue is the PF department is raising a concern that the same PF number is being used, which is already settled. Additionally, the PF department has marked my PF account as inactive, and I have not received any interest on the existing PF amount. Is there any way I can claim this amount from the employer? It is certainly the employer's mistake to assign the same PF number that has already been closed.

I just wanted to know about the PF Account issue and why my PF withdrawal/transfer forms keep getting rejected. During this time, my PF forms have gone into inactive mode, and I am not receiving any interest on them. Could you please tell me who will pay me the interest for the past 3 years?

I am working in a reputed automation company in Pune. I joined this company 1.5 years ago. After joining, I applied to transfer my PF account from my old company, which is in Kandla, Gujarat, with the PF office in Rajkot. After two months, I received a letter from the PF office in Rajkot stating that the transfer of my PF account was rejected. The reason for the rejection was "MEMBER NAMEs DIFFER." According to their records, the PF number I entered pertains to another employee in the same company. I verified the PF number and found that I had entered the correct one, as provided by my old company and as it appeared on each of my pay slips.

I contacted the HR department of my old company. They checked their records and found that the PF number given to me was indeed assigned to another employee in the same company. They informed me that there was a mistake by their consultant in assigning PF numbers obtained from the PF office in Rajkot. They assured me that they would correct the assignment of the PF number through their consultant, which would take 2-3 months. After this correction, I would need to reapply for the transfer of my PF account.

It has now been more than a year, but the issue is still unresolved. I am regularly following up with them, but they say the delay is from the PF office in Rajkot.

Questions About PF Transfer Issues

Can you please let me know what kind of process normally needs to be followed in such issues? How much time is typically required to resolve such issues? Who is completely responsible for such issues — the company, the PF office, or the employees? If my old company is taking such a long time, is there any legal way to resolve this?

Regards

Dear Mr. Rag,

As per my knowledge, the same PF number cannot be assigned. Kindly identify the reason for the rejection of the form; there may be many reasons, and only then corrective action can be taken.