Can My Employer Hold My Provident Fund If I Resign? What Should I Do Next?

Hello all,

Will you please clarify one query related to PF (Provident Fund)? Is it possible that an employer will hold the PF amount of an employee? In case one resigns from his/her present employer and wants to join another employer (in India or outside), what will happen to the PF money? In case the employer does not want the employee to leave the organization, will the organization hold the PF amount, and what should the employee do in such a case?

Thanks,
Rahul

Hi Tribuvan,

No employer can hold the PF amount. We can transfer the amount to the present account on submitting Form 13 revised through the present employer.

Regards,
Hems

Either we can transfer our amount to a new PF account (new employment) by filling Form 13A or withdraw our amount by filling Form 19C. The place where the employer's signature is to be attested, we can get it done by any gazetted officer.

Regards,
Tara Prasad

Dear Tara Prasad,

Based on the services they acquired, they can decide to withdraw or transfer the account. Considering the pension scheme, if the services are more than five years, it is advised to transfer the account. The settlement form can be signed by a gazetted officer if no employer exists or otherwise, it is better to get the signature from the employer.

Regards,
hems

Thank you, Hems and Tara, for your replies.

If the employer does not sign the form, will I be able to get the PF money with the signature of a government officer?

Sometimes, the employer does not let you go, and you have to join a new employer. In that case, will the employer be able to hold the amount or create hurdles?

What does labor law say in cases where an employee wants to leave to join another? Is he free to join? Or, in that case, will the employer hold the PF amount (this is what I heard - that the employer will hold/take the PF amount)?

Thank you,
Rahul

Employer cannot hold the PF contribution. You can always claim after the expiry of 60 days from the date of leaving. In case the person is leaving India, the money so contributed to his account by the employer shall be refunded (as per law) immediately. That means the person need not wait for 60 days to apply for a refund.

You can also submit your application through PF Complaints in your regional area. For more details, please check with your local PF Office/ Regional PF Commissioner's office, where the returns are filed by the company.

Manoj

Hi Rahul,

Let me clarify the question which you have asked. First of all, no employer can hold the provident fund amount. If he does, complain to the Regional Provident Fund Commissioner. If the employer does not sign the Form 19 & 10C, then one can get it signed from the bank manager of the bank where PF is deposited.

Regards,
Virendra

No employer can withhold the money of the employee. It is solely at the discretion of the employee to get the PF withdrawn (Form 19 C & Form 10 C, Form 10 C can be filled out only if the service render is more than 6 months) or transferred (Form 13). Regarding signing up of the Form, if the employer is not signing the same, it can be done by a Gazetted Officer.

Deepa

Hi all,

Though very late, I have a question about the points mentioned. As it was mentioned, if the previous employer is not signing the forms, then the employees can get them signed by a Gazetted officer.

My question is, what if the employer has deducted but not remitted the amount to the PF department? This could be one reason why the employer is not signing the forms. What should an ex-employee do in such a case?

Regards,
Seema

Hi all!!

Even I had a similar concern. I want to withdraw my money from my PF account, but since my previous company was not accepting my resignation, they are not willing to sign the form required for PF withdrawal.

Is it really true that any gazetted officer can sign if the previous employer refuses? Also, I only have Form 31 from the previous company and cannot obtain any other documents. Would I need a specific form from the previous employer to withdraw my PF money? I do have my PF account number with me.

Kindly advise. Thank you very much.

Hi All,

I worked for a reputed bank, and apparently, this bank has its own PF Trust. They are holding my PF, saying I owe them a relieving amount, while I have already been issued a relieving letter by them. My current company says if they have their own PF trust, they probably can do it. Please advise on what I can do to retrieve my PF.

No employer can hold one's PF amount after 60 days of the resignation date and the end of his contribution period. For two months, he is eligible to withdraw his money with the signature of the Gazetted officer certifying that the person is currently not employed anywhere. The amount will be credited to his nationalized bank account if it's more than 2000, or he will receive it by M.O.

If you encounter any difficulties, you may contact your Regional P.F Commissioner for assistance.

Regards,
Gowrishankar.G

Hi Rahul,

Except for the organizations which have their own exempted trusts, which in turn are bound to comply with the PF Act and Provisions, all other organizations covered under the Act are statutorily required to deposit the monthly PF contributions of their employees along with the matching contribution of the employer with the nearest RPFC, i.e., the Regional PF commissioner. This is required to be done every month. Violation is visited by penalty. Therefore, there is normally no question of the employer withholding your PF amount since the amount would have been deposited with the RPFC. What normally happens is if you are leaving without the consent of your employer, they tend not to cooperate in withdrawing/transferring the P.F accumulations. As already mentioned by many of our friends, you can get the amount transferred by filling up form 13-A(R) or withdraw by filling up the appropriate form and applying to the RPFC.

Ashok

Hi,

I have worked for a Mumbai-based company, which I resigned from on Nov 27, 2006. Since then, I have not yet received my Provident Fund amount, even though I had applied for it in April 2007. The company now claims that I still owe them an amount, but they have not been able to provide me with the records or details for this claim.

Please advise me on what steps I need to take to ensure my Provident Fund amount is cleared.

Thank you.

I do not have my PF account number with me. Also, my employer is not signing the forms (for me only) to get my PF amount. Few people have received their PF amount. In such a case, how do I get my PF amount?

Hi all,

It has turned out to be a very interesting discussion, and it is a very valid point in this age of job hopping, where it's not often that an employee is steady in a company for 5 years. All the more reason for us to be aware of our rights to our earnings.

I would like to reconfirm that if your employer does not assist you in transferring or withdrawing your PF amount, you could approach the Gaz. Officer or the Regional PF office to obtain your PF money.

Seema, to answer your question, in case the employer hasn't yet deposited the PF contributions with the Government Agencies, in that case, the company would still be liable to pay you back the entire PF amount (your contribution and the company contribution), as stated in your letter of appointment. However, that amount would be taxable and non-exempt under the PF Act. :)

And Srinsaa27, yes, the employer needs to inform every employee about their PF account numbers. It would be a part of your monthly salary slips.

Now, with the Government Agency offering SSN (Social Security Number), it would be much easier transferring, withdrawing, and keeping track of your PF, no matter how many companies one changes or migrates to whichever city.

Regards,

Nayana Chander

Hi,

I had worked with a BPO for a year and a half around 3 years back, but I have still not received the PF. When applying for the withdrawal of my PF, I mistakenly wrote my cousin's account number instead of mine since both of us have accounts with HSBC and live in the same house. This error led to the cheques sent by the PF office to my bank being returned. However, my bank has not received the cheques yet. Furthermore, since it has been more than a year, the cheque is now postdated.

After contacting the PF office in Gurgaon over the phone, they requested me to reapply along with a letter from the bank explaining the situation. I have completed the necessary steps in this regard. However, upon receiving the reapplication form, the PF office informed me that the dues have already been settled earlier, referring to the cheques they claim to have sent but never reached the bank.

Could someone please assist me with this matter?

Sam

Hi all,

Requesting you all to guide me. There was an employee working with us who was terminated due to some fraud. Subsequently, she filed a harassment case against the organization, resulting in a fine of up to Rs. 25,000.

Now, she wants to claim her PF amount, but she has a significant outstanding balance with our organization (she owes a considerable amount to the organization). I have recently taken charge as the HR Officer.

What should be done? Please assist me in this matter as soon as possible.

Regards,
Rashmi

Hi Smitha,

I am Smitha, working for one of the software (S/W) and hardware (H/W) companies. Previously, I was employed at HTL where I resigned from my position in December 2008. I submitted the withdrawal form in February 2009. However, the PF office personnel have informed me that my file is currently in the cash section, and they have assured me that I will receive my money within 10 days. I kindly request your assistance in identifying the appropriate contact person to expedite the processing of my file.

Thank you for your help.

Hi All,

Can anyone tell me from how many months of leaving one organization one can withdraw the PF money?

Neha

Question to the Learned Seniors

I was working with a company until November 2012 and was a part of the PF scheme. After that, until March 15, 2013, I was running my own business. Now I have got a job and am joining a company again. My questions are:

1. Can I withdraw the amount of PF from the previous employer?
2. Can I opt to not be a part of the PF Scheme during my new employment?

PF Contribution During Establishment Closure

My question is, if an establishment has a PF account and regularly deposits the PF amount, but suddenly the establishment closes for four months with no employees working during this period, how much PF amount should be deposited during the closure period?

Thanks,
Baren
Noida

Can you help me out? Is it possible for an employer to hold the PF amount of an employee who has already left the job? If yes, is it a written policy in the PF Act of 1952?

Thanks,
Baren
Noida