Managing Employee Rejoining After Early P.F. Withdrawal: Is There a Provision?

Dear senior, I have a query. In my company, there are more than 1,000 workers. The issue is that every month, 30-40 people want to withdraw their P.F. amount. They cannot wait for the 5 or 7 years as per the P.F. regulations to withdraw a partial amount. Thus, we have to allow them to withdraw the P.F. after 2 months. However, the workers continue to work in the company. After the 2 months, we show the new joining of employees.

Provision for Rejoining Workers

My question is, is there any provision for the rejoining of those workers who have withdrawn their P.F.? This is because we create 30-40 new files every month (excluding rejoining employees) and also handle full & final settlements.

Unethical PF Withdrawal Practices

It is illegal and improper to show employees as having left services for two months to enable their PF withdrawal while they continue to work. After two months, they are shown as newly appointed, and PF membership is resumed. Since you are doing this for 30-40 workmen regularly, sooner or later, the PF Inspector will detect the default, which could lead to prosecution, heavy fines, damages, etc. You are engaging in unethical practices, even though it is being done at the behest of employees. In the eyes of the law, this will never be appreciated.

"So we have to allow them 2 months to withdraw the PF. But the worker is working in the company. After 2 months, we show the fresh joining of the employee."

Legal Implications of Irregular PF Practices

This practice is highly irregular. It has legal implications that will land your company in problems. Employees are aware of PF withdrawal procedures, and asking for this type of irregular help is improper and needs to be stopped forthwith. Employee turnover ratios will also be high on paper, giving a false impression to audits. How can senior officials be party to this willing breach of PF rules?