Navigating PF Transfers: What Challenges Might Rahul Face Moving to a New Company?

Case 11: Statutory Complaints

Rahul works as an HR executive in XYZ company for the past 2 years, and he shifted to PPP company as an HR Generalist. When Rahul shifted from XYZ to PPP, he canceled his PF account to get back the money. If Rahul quits his present company within 5 months and is interested in joining another company.

In case he joins immediately to another company: In the past, PPP company salary was 15k. Rahul's new YYY company salary is greater than 15k (18k-20k).

Study the case carefully and comment on the following:

1. If Rahul joins another company, how does he get his PF amount? How?
2. If in case he is interested in canceling, is it possible to claim? How?
3. If he is interested in transferring/joining the old account to the new: How?
4. Can there be any problems raised if he transfers old PPP company to the new YYY company? Comments.

EPF Account Details and Transfer Process

Nowhere is it mentioned that the PF is with EPFO or a trust fund. However, assuming that the EPFO is the depository of his fund, an EPF account cannot be canceled. Keep this in mind always. The membership number may change as per the new employee, but the UAN always remains the same. It is assumed that Rahul has had his claim settled from XYZ and has no dues from the provident fund of XYZ.

Transfer and Claim Process for Rahul

Now, he worked for 5 months in PPP, and without completing 6 months of service, he cannot file any claim. He has to use the UAN of PPP in the new joining company. If his UAN is activated and KYC is verified digitally, it will be auto-transferred to the new joining company; otherwise, he has to fill out Form 19 through his member portal using his UAN for transfer. If the employee changes UAN, then this 5-month money cannot be claimed.