It is not illegal. On switching jobs, an employee can apply for the transfer or withdrawal of money from the EPF account through a form that is filled out by the employee and attested by the designated authority at the employer.
EPF Rules For Withdrawal & Transfer
The following are the EPF rules for withdrawal and transfer:
A provident fund member can withdraw the complete amount from the fund once they attain the age of 55. Cases where withdrawal can be possible before attaining the age of 55 are:
- At the time of termination of service
- Retirement on account of total disablement
- Migration to other countries for permanent settlement
- Retrenchment
There are certain specified criteria under which withdrawal (partially as per EPF rules) is permitted from an EPF account. An individual needs to furnish all relevant documents and satisfy the necessary requirements in order to be eligible for premature withdrawal from the account.
- Education or Marriage - have 7 years of service
- Medical treatment - No restriction
- Purchase of plot - have 5 years of service
- Construction or purchase of flat or house - have 5 years of service
- Repayment of home loan - have 10 years of service
- Alteration or renovation of house - have 5 years of service
- Pre-retirement
This is as per my knowledge.
Regards,
Narayan