Worked as an intern for 6 months in a startup, then they changed my status to a permanent employee. Due to a minor operation on my eye, I resigned, and they opened a PF account for me. They closed it when I left the company 15 days after my last working day. They asked me to rejoin as a contract employee for one project, clearly stating that when the project ends, my employment with the company also ends. According to their policy, there are no PF benefits for contract employees, only for permanent employees. Will it affect my future BGV with MNCs? Will they reject me because I don't have PF for the contract employment period?
From India, Chennai
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From India, Chennai
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Understanding PF Benefits for Contract Employees
Your concern about not having PF benefits during the period of contract employment and its impact on your future background verification checks with MNCs is a common concern among many employees transitioning from permanent to contract roles.
Firstly, it's important to note that the provision of PF benefits is determined by the policies of the respective company. If the company has a policy of not providing PF benefits to contract employees, they are within their rights to do so. However, this does not have any legal repercussions on your part, or any potential impact on future employment opportunities.
Impact on Background Verification
Companies conduct background verification to check the authenticity of the information provided by the candidate. This includes your employment history, educational qualifications, and any criminal record. The absence of PF benefits during your contract employment is not a factor that would lead to a negative background verification.
What You Can Do
1. Keep a record of your employment contract that clearly states the terms of your employment, including the fact that you were a contract employee and were not entitled to PF benefits.
2. If there is any confusion or concern, clarify this with your future employer during the interview process itself. Being transparent about your employment history can prevent any misunderstandings during the background verification process.
3. If required, you can verify your PF account status with the EPFO online, on their official website https://www.epfindia.gov.in. By logging into the portal, you can check the status of your PF account.
4. For further information, consider seeking advice from a labor law expert or a HR professional.
In summary, lack of PF benefits during your contract employment period should not impact your future background checks with MNCs or any other companies. Just ensure that you are transparent about your employment history during the recruitment process.
From India, Gurugram
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51Your concern about not having PF benefits during the period of contract employment and its impact on your future background verification checks with MNCs is a common concern among many employees transitioning from permanent to contract roles.
Firstly, it's important to note that the provision of PF benefits is determined by the policies of the respective company. If the company has a policy of not providing PF benefits to contract employees, they are within their rights to do so. However, this does not have any legal repercussions on your part, or any potential impact on future employment opportunities.
Impact on Background Verification
Companies conduct background verification to check the authenticity of the information provided by the candidate. This includes your employment history, educational qualifications, and any criminal record. The absence of PF benefits during your contract employment is not a factor that would lead to a negative background verification.
What You Can Do
1. Keep a record of your employment contract that clearly states the terms of your employment, including the fact that you were a contract employee and were not entitled to PF benefits.
2. If there is any confusion or concern, clarify this with your future employer during the interview process itself. Being transparent about your employment history can prevent any misunderstandings during the background verification process.
3. If required, you can verify your PF account status with the EPFO online, on their official website https://www.epfindia.gov.in. By logging into the portal, you can check the status of your PF account.
4. For further information, consider seeking advice from a labor law expert or a HR professional.
In summary, lack of PF benefits during your contract employment period should not impact your future background checks with MNCs or any other companies. Just ensure that you are transparent about your employment history during the recruitment process.
From India, Gurugram
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf