Navigating EPF Withdrawal and Continuation: How to Handle a New Joiner's Request?

Hello, we have a new joiner who has raised this query. The new joiner does not want their previous company to know where they have joined. So they have asked to fill Form 19 and withdraw their entire EPF amount accumulated to date in that company. At the same time, since they will be joining us this month, we will update their UAN in our records to start contributing to their EPF from their wages that shall arise due to their employment with our organization.

I am having difficulty understanding why, in the interim, they are informing their previous organization that they are withdrawing from their PF, while here we will be contributing even before they have withdrawn their PF amounts.

Kindly guide me.

Hi, The question is not very clear. If the employee is already a contributing member, then the UAN should be there, and you will also be using the same UAN number. Her ex-employer PF should be claimed through the online UAN portal only. Physical forms are not allowed now.

In the case of transferring PF, the ex-employer needs to approve. Hence, she might be withdrawing past PF, I presume. Even in that case, there is a 60-day waiting period from the date of relieving from the last employer before which a claim cannot be made.

Once she joins a new organization, PF can only be transferred to the new employer and cannot opt for full withdrawal. However, partial withdrawal of PF is allowed subject to approval by the PF office through the UAN portal.

Thanks, Lakshmi ji. My question is that the person joining us does not want her last employer to know that she is joining us. If she requests her last employer to transfer her PF account, then her last employer will know where she has joined. Hence, my question is how can she avoid her last employer from knowing where she has joined. Please advise.

Thanks,

Anu

Hi,

What is the reason behind it?

Out of fear, or is your company a competitor to them? Not sure.

As already stated, claiming PF will be the only option to avoid the previous employer knowing about her joining. In that case, she needs to wait for 60 days. Suppose you start deducting PF before the completion of 60 days, then UAN being the same, she cannot withdraw fully and will be compelled to transfer.

Alternative approach

Alternatively, what you can do is hire her as a short-term Retainer Consultant without PF (even for such a category, PF is a must if they work on a full-time basis and the tenure is extended repeatedly) and let her support like that until she is able to withdraw PF. After that, you can hire her on a full-time basis with PF. This is a shortcut method.

Also, please explain to the employee about the benefits of transferring PF, such as pension eligibility after 10 years, etc.

I don't understand how the past employer is coming to know about her joining your establishment through the PF site if she has not given an approval request to them. If she joins your organization and gives a transfer request 'through the present employer,' how can the previous employer be involved in such a transfer?

I am confused here by the conflicting opinions of Madhu ji and Lakshmi ji.

@Madhu ji, the transfer request will be given through the portal. In that case, will the company name go to her past employer? I don't get it; does the past company have to transfer to our company, or is it that the name of our company will be invisible to her past company? Please clarify. Otherwise, I feel that Lakshmi ji's opinion is logically correct.

Transfer of PF Accumulations

Transfer of PF accumulations of an employee to the current organization is initiated through their own member portal. The transfer will become effective only when the employer approves it. The member can choose who should approve it; it can be either the previous employer or the present employer. Though the EPFO advises that it is desirable that transfer requests are sent to the 'previous employer' for approval, it is not mandatory that an employee should get it approved by the previous employer only; they can do it through the present employer also. If they select "approval through the present employer," then the question of sending the transfer request to the previous employer does not arise.

As such, how does the previous employer come to know about his/her present employer?

Hi, Yes, employees have the option of choosing either a previous employer or current employer to attest the claim form (based on the availability of an authorized signatory holding DSC). However, the employee should have updated their UAN login in all aspects.