Struggling with PF Settlement and Experience Certificate Due to Policy Change – Need Advice!

I joined a reputed automotive software company in Coimbatore in August 2008 as a fresher. I worked for 4 years and 7 months. I was deputed to France for a year from January 2011 to January 2012. According to the onsite agreement, I was supposed to serve the company for twice the onsite period (i.e., 24 months from January 2012). This is not a legal agreement but a mutual agreement as per company policy. However, due to personal reasons, I quit the company in March 2013 as I had planned to study MS in Germany.

Revised Company Policy

The company policy was revised from January 2013, stating that only 6 months after the onsite period is sufficient. However, the HR department is not providing me with the experience certificate and my PF settlement. They have asked me to pay for 11 months (since I served 13 months from January 2012) in order to receive my PF settlement and experience certificate. I have requested my HR multiple times, citing the newly revised company policy on the onsite bond period. Despite this, the HR has stated that the new policy is applicable only to those who went onsite from January 2013 onwards and insisted that I pay the amount to receive my settlements.

Currently, I am studying with the help of an educational loan, making it difficult for me to pay the amount, which is roughly 1.3 lakhs. I would appreciate any guidance on how to resolve this issue.

Thank you.

Clarification on PF and New Policy

As per your email, HR was correct in stating that the new policy applies to those who go onsite from January 13 onwards.

PF cannot be stopped by an employer. It must be processed, as it is a legal requirement that no employer can halt.

Regards.

Policy Change and Onsite Agreement

Was the policy changed before you moved onsite? Do you know about the new policy and have you signed the agreement? If so, then your HR is right. However, if you had already moved onsite before the new policy was applied, and you are unaware of the policy change and have not yet signed to agree to the new policy, then the new policy should not ideally be applied to you.

If the second scenario applies to you, you can draft an email to the head of HR mentioning that you had already moved onsite before the new policy was applied and that the same policy should be applied to employees who joined later. Make your point valid and try to convince them for your proper relieving.

Provident Fund Withdrawal

Regarding the Provident Fund (PF), no employer can stop PF withdrawal, and you can withdraw your PF by completing all mandatory formalities.

Company Policy and Agreement Applicability

The agreement or policy of the company remains valid when you went abroad. Further changes in the policy, unless informed to you, are not applicable to you. Therefore, HR is correct in stating that you will have to pay the amount as per the agreement/policy that existed at that time.

Provident Fund (PF) Concerns

As far as the PF is concerned, they cannot stop or hold it to adjust the amount payable to you. The only way is to meet with the top management, apprise them of your situation, and request their help, as the company has the right to waive off the amount payable to you as a special case, which HR cannot do.

I am in a similar situation. No PF and no release letter. You can send an email to your employer to release your PF. If they do not take action, go to the local PF commissioner and file a complaint. There is no need for a release letter. If you have an appointment letter, resignation letter (with the proper date of resignation), and the latest pay stubs, you can convince your next employer with those details.

Regards.

Please answer these two questions in order to provide a better opinion:

1. Did you go to France for training, for which the company covered all the expenses, or was it a routine deputation?

2. Did you request to go for this deputation, or was it the company's decision to send you to France?

If it was not training, then it is totally illegal, and they cannot force you to serve for that period. No company policy is above the law of the land. Forced labor is a crime punishable by a jail term in India, and this scenario is squarely covered under its definition. Just because a company has sent any of its employees on deputation somewhere for work doesn't mean that they have the right to ask him to work against his will for any term whatsoever. However, it all depends on your answers to my questions.

It is correct that they cannot stop the PF settlement as it is not within their power to stop the same. However, for a clean experience certificate and positive feedback, you have to take refuge with the law and complain against them to your Local Labor Commissioner. That will sort the matter once and for all.

Please do answer my above questions.

I would like to congratulate you on your studies. Coming to your case, I second the opinion of our lawyer from Delhi. The way your employer is behaving seems to resemble bonded labor. It doesn't work out in our country's scenario. Also, "This is not a legal agreement but as per company policy, a mutual agreement" - that mutual agreement needs more clarity, whether any signing happened or it's oral in nature. However, my suggestion for you is to please sit with a senior person from HR, explain your situation, and try to resolve the problem amicably.

Regards.