Is HR Right to Demand an Affidavit for PF Withdrawal After Job Change? Seeking Advice

I have a query on PF withdrawal. My daughter was employed in a Pharma Company for 2 years. She left the organization and joined another organization. The previous company has paid all the dues and also provided a relieving letter/experience certificate. However, when she submitted the PF Withdrawal Form, HR is asking her to furnish an Affidavit along with Form 10C and Form 19, stating she is not employed anywhere.

Is There a Rule or Notification from the PF Office?

Is there any rule or notification given or framed by the PF Office, or is the HR person simply harassing her? The previous Company HR person knows where she is employed, but I think she should still be able to withdraw the PF dues of her previous employment.

Future Actions for PF Dues

What future action can she pursue to get her PF dues? Kindly respond.

Thanks for stopping by this thread.

With regards,
Sujit

In Form 19, it is written that the claim should be submitted after two months from the date of leaving service, provided the member continues to remain unemployed in an establishment to which the act applies. It means a person should be unemployed for two months after leaving the service to withdraw the PF amount. If a person is in continuous service, he/she cannot withdraw the PF amount; in this case, only a PF transfer is possible. This is according to the PF Act.

If the employer has good terms with PF officers in that area, then there is no problem withdrawing the PF amount.

The same case happened to me when I was trying to settle my employees' PF amount from Chennai. Chennai PF officers refused to settle all the accounts because employees were in continuous service. Finally, I submitted PF transfer forms, and the accounts got settled. But in other states, it is not that difficult because nobody checks whether an employee is in continuous service or not.

In your case, you can talk to the previous employer about their process. Let us know what they are saying; according to that, we can suggest the next step.

EPF is a benefit extended to its enrolled employees. I would request you to check the benefits an employee is entitled to. I would advise transferring the old EPF and EPS accounts to the new account rather than withdrawing them.

If it is essential, you may sign the form with a bank officer and deposit it in the EPFO if you have been unemployed for the last two months. You can wait until July, as you will be able to withdraw or transfer online from then onwards.

For any queries or suggestions, please post your comments.

Regards,
Shaikh Abedeen
HR Professional

The answer to your query is as follows:

Understanding Provident Fund Withdrawal

Provident Fund is a provision for your old age or after your retirement. When you are in service, you are not entitled to withdraw or settle your PF account. When you change your employment, you should transfer your account from your old employer to the new one. This is the law.

Conditions for Withdrawal

However, if there is a break in two employments for more than 2 months or if there is no PF in your new employment, you can withdraw your PF account. You need to provide a declaration to this effect. This declaration is integrated into the withdrawal form itself. There is no separate declaration, undertaking, or affidavit required.

I hope I have clarified it for you. I endorse only the first paragraph of the reply by Meenakshi ji.

Regards.

As per the law, you cannot withdraw your PF when you are still working. So, your daughter's previous HR is right. Since he knows she is working and knows he can be in trouble for signing the false certificate, he is asking for her affidavit that she is not working. If she gives a false declaration, she is responsible, and he cannot be held accountable for what amounts to fraud on her part. Do you really need to do this? Else, just transfer the amount to the new PF account.

I am facing the same problem stated above, and I have a question related to it. If I submit my UAN number to my new employer, will the PF office know that I have joined a new organization? Maybe my claim got rejected due to that?

- Pramod

Why give false declarations on non-employment to draw PF balances? The concept of UAN will plug such "honest" tendencies amongst us. Please follow the rules on the subject as PF is a long-term saving and will benefit you when you need it most at a time when your earnings may be lower. Present needs when you are working are transient and can be managed.