PF Withdrawal Issue with Contractor
Hello everyone, this is Neha, working as an HR executive in a private firm that employs contractors' labor. Currently, I am facing an issue regarding PF withdrawal. Initially, we had a Contractor XYZ through whom we deployed some employees on a contractual basis. After 7-8 months of working in our company and demonstrating good performance, we transitioned them onto the Company Roll. Now, these employees wish to withdraw their PF. However, one of them provided incorrect information during the PF submission process. When we informed the contractor about this discrepancy, he raised concerns regarding placement charges and is refusing to complete the PF formalities, despite placement charges being a separate issue.
My Questions
1. Can the contractor withhold the PF of the employee?
2. Can we process the PF withdrawal of the employee without involving the contractor? If so, what is the procedure for this?
Please provide guidance on this matter.
Thanks & regards,
Neha Vaish
From India, Rudrapur
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Hello everyone, this is Neha, working as an HR executive in a private firm that employs contractors' labor. Currently, I am facing an issue regarding PF withdrawal. Initially, we had a Contractor XYZ through whom we deployed some employees on a contractual basis. After 7-8 months of working in our company and demonstrating good performance, we transitioned them onto the Company Roll. Now, these employees wish to withdraw their PF. However, one of them provided incorrect information during the PF submission process. When we informed the contractor about this discrepancy, he raised concerns regarding placement charges and is refusing to complete the PF formalities, despite placement charges being a separate issue.
My Questions
1. Can the contractor withhold the PF of the employee?
2. Can we process the PF withdrawal of the employee without involving the contractor? If so, what is the procedure for this?
Please provide guidance on this matter.
Thanks & regards,
Neha Vaish
From India, Rudrapur
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Similar sorts of cases have been discussed earlier in this forum. No employer has the right to stop the PF withdrawal. An employer can deny signing the form, but there are procedures in place for the same.
Procedure for PF Withdrawal Without Employer's Signature
You can fill out Form No. 13 to open a new account for them and transfer the PF from the contractors to your company, or withdraw the amount by filling out Forms 19 and 10C. To withdraw, you need to fill out the above forms and have them attested by any Gazetted officer or bank manager, then send the copies to the Regional PF office. Attaching a letter informing the reason for the contractor not signing to the PF commission will also serve your purpose. The PF officer will verify the forms and release the amount within 60 days from the date of submission of your forms.
From India, Visakhapatnam
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995Procedure for PF Withdrawal Without Employer's Signature
You can fill out Form No. 13 to open a new account for them and transfer the PF from the contractors to your company, or withdraw the amount by filling out Forms 19 and 10C. To withdraw, you need to fill out the above forms and have them attested by any Gazetted officer or bank manager, then send the copies to the Regional PF office. Attaching a letter informing the reason for the contractor not signing to the PF commission will also serve your purpose. The PF officer will verify the forms and release the amount within 60 days from the date of submission of your forms.
From India, Visakhapatnam
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