Dear Parul,
As per ESIC & EPFO - a company shouldn't open new accounts for employees if they have an existing account.
Firstly, when an employee leaves your organisation :
a) as per ESIC the same number can & should be carried forward to any other esic covered establishment.
b) as per EPFO, an employee is not allowed to withdraw funds unless they remain unemployed for minimum of two months from last working date. So if any employee joins back within two months, then its simple for you to retain their existing PF number.
Secondly, explain to them the benefit of retaining the same PF/ESIC number. For eg:- when they need to apply for disability claim or sickness claim ESIC takes into account their average salary for last x months. Also the full claim can be availed only if IP has been contributing for 06 months continuously. Similarly for EPFO, inform the employees that the fund in the account is eligible for interest every year and if they withdraw, their opening balance and interest amt earned is lower but most importantly incase of any untoward event and claim of Pension, EPFO too considers last X months of average salary.
You can make the employees more aware of ESIC & EPFO benefits by putting up circulars on the notice board. The following links will help you educate your employees on the benefits -
Epfo (Govt. of India) & ESIC.NIC.in
Regards,
Deena Jagasia