Navigating EPFO Rules: Temporary Staff, Contract Workers, and Online Withdrawals in Schools

Dear CiteHR community,

I really appreciate the wonderful cause of this site. It's encouraging to see experienced people invest their time in giving such wonderful counsel. I am the manager of a school in Uttar Pradesh, under the Kanpur EPFO zone. We have around 50 staff. I have a few queries. It would be a great help if you could advise me.

Temporary Employee PF Inclusion

1. When an employee is recruited temporarily, maybe for one or two months, should he/she be included in the PF list? In the past, a few employees left without ever withdrawing their PF money. Can we leave them out of the PF list? What do the PF rules say?

Contract Laborers and PF Requirements

2. Construction is going on in the school. There are around 6 or 7 masons and laborers working under the contractor. It is common for the masons and laborers to leave the contractor, and new laborers join in their place. The contractor doesn't have any PF account for his employees. Is there any rule stating that these contract laborers should also be included in the PF list? I doubt it is possible. What does the PF office say about this?

PF Withdrawal and Online System

3. A few of the employees who left did not join anywhere. Even those who joined another organization want their PF to be closed, and the money withdrawn. They have submitted their forms. I got the digital signature. When I signed in, I found that online transfer is possible. But I don't know whether online withdrawal is possible or not. If it's not possible now, how long will it take for the system to be available? Please advise.

Thank you,

V. Fredrick Paul

When any employee is engaged by you, even for one day, you are liable to cover him under EPF unless he is an "exempted employee" within the meaning under the Act. Withdrawing PF money is not your concern. When an employee leaves you, you need to exit him from the scheme with you on his last day of working.

Contract Laborers and PF Inclusion

Construction is going on in the school. There are around 6 or 7 masons and laborers working under the contractor. It is common for the masons and laborers to leave the contractor, and new laborers join in their place. The contractor doesn't have any PF account for his employees. Is there any rule stating that these contract laborers should be included in the PF list? I doubt it is possible. What does the PF office say about this?

Even if an employee is engaged through a contract agency or a subcontract agency, he should be covered under the EPF scheme. If the contractor does not have a PF code allotted by the department, it is your responsibility to cover the contractors' / subcontractors' employees under your code.

PF Account Closure and Withdrawal

Few of the employees who left did not join anywhere. Even those who joined another organization want their PF to be closed, and the money to be withdrawn. They have submitted their forms, and I have the digital signature. When I signed in, I found that online transfer is possible. But I don't know whether online withdrawal is possible or not. If it's not possible now, how long will it take for the system to be available?

Closing a PF account or transferring it after leaving the job is also not your responsibility. The member has to make a decision and submit the respective application to EPFO through you. The member is not entitled to close his account if he is employed elsewhere within 2 months after leaving you, and in that employment, there is an EPF scheme applicable. The member has to give a declaration accordingly in the PF withdrawal form. If any member gives a false declaration, you are not responsible.

Online withdrawal has not been started by the department. When it will start, the answer cannot be given by any member like me.

Regards,