Employee's Extended Leave: How to Determine the Correct EPF Exit Date?

One of our employees went on leave on the 7th of November 2020 until the 31st of March 2021, continuously postponing their return despite reminders to rejoin. In March 2021, the service was terminated. From the 7th of November 2020 to the 31st of March 2021, the salary was not processed and was marked as Loss of Pay, with 0 PF contribution and full NCP days recorded. Now, the query is about the exit date for the employee: should it be the 7th of November 2020 when the employee was present or the 31st of March 2021?

Considering the scenario presented, the exit date for the employee in question should be 31st March 2021. Despite the employee being on extended leave since November 2020, the termination of service occurred in March 2021. This termination date signifies the official end of the employment relationship, leading to the calculation of the exit date for PF purposes. Therefore, the exit date for the PF membership should align with the termination date, which is 31st March 2021.

This approach ensures that the PF exit process is appropriately handled in accordance with the termination date, reflecting the employee's status accurately in the PF records. It's essential to maintain consistency with the termination date for legal and administrative purposes related to PF contributions and membership status.