Navigating P.F. Code Surrender: Can We Consolidate State Employees Under One Code?

Dear All,

Surrender of Establishment P.F. Code

Please advise on the following points regarding the surrender of the establishment P.F. code. We have a separate P.F. code for 7-8 states and a separate head office P.F. code.

1. Can we transfer other states' employees' P.F. under the Head Office establishment code?
2. After the transfer of live employees' P.F., can we surrender the state's P.F. code?
3. What is the employer's liability after surrendering the P.F. code?
4. In case the P.F. is not withdrawn by the departed employee, what can be done after the surrender of the P.F. code?

Thank you.

Transferring Employees' P.F. to Head Office Establishment Code

1. Transferring Employees' P.F.: In India, as per the Employees' Provident Funds and Miscellaneous Provisions Act, it is possible to transfer employees' Provident Fund (P.F.) accounts from one establishment to another. You can transfer other state employees' P.F. under the Head Office establishment code by following the prescribed procedure for inter-establishment transfer.

2. Surrendering State's P.F. Code: After transferring the live employees' P.F. to the Head Office establishment code, you can proceed with surrendering the state's P.F. code. However, ensure all necessary transfers and formalities are completed before initiating the surrender process to avoid any compliance issues.

3. Employer's Liability Post Surrender: Upon surrendering the P.F. code of a state, the employer's liability shifts to the Head Office establishment code. The employer remains responsible for managing and ensuring compliance with P.F. regulations for all employees under the Head Office code.

4. Unwithdrawn P.F. by Departed Employees: In cases where the P.F. is not withdrawn by departed employees after the surrender of the P.F. code, the employer should follow up with the concerned authorities to facilitate the withdrawal process. It is essential to maintain records and actively engage with the P.F. organization to address any pending issues related to unwithdrawn amounts.

By adhering to the legal provisions and guidelines set forth by the Employees' Provident Fund Organization (EPFO), employers can smoothly transfer employees' P.F. accounts and manage the surrender of establishment codes effectively.