Dear All,
This incident happened in our organization during March 2014. One employee, who had been working with us for the past 4 and a half years, submitted a resignation letter. At the bottom of his letter, he specifically mentioned that he is submitting this resignation only for the purpose of withdrawing his Provident Fund amount. He had a perception that the organization would accept his resignation with the same purpose, remove his name from the company payroll for 3 months, and release his PF after 3 months from the date of resignation. Then, the organization would reinstate him in the payroll with a new appointment letter and a new PF account eventually.
Being in HR, I was the first person to respond to him, and based on my knowledge, I informed him that this is not the process. PF amount can only be claimed and withdrawn when a person retires or resigns from a particular organization. Furthermore, in some cases, I have read that a particular percentage of PF amount can be withdrawn in the case of an employee's daughter's wedding.
Hence, I request you all to guide me on this and let me know whether the PF can be withdrawn by submitting such a type of (temporary) resignation.
From India, Ahmadabad
Acknowledge(0)
Amend(0)
13This incident happened in our organization during March 2014. One employee, who had been working with us for the past 4 and a half years, submitted a resignation letter. At the bottom of his letter, he specifically mentioned that he is submitting this resignation only for the purpose of withdrawing his Provident Fund amount. He had a perception that the organization would accept his resignation with the same purpose, remove his name from the company payroll for 3 months, and release his PF after 3 months from the date of resignation. Then, the organization would reinstate him in the payroll with a new appointment letter and a new PF account eventually.
Being in HR, I was the first person to respond to him, and based on my knowledge, I informed him that this is not the process. PF amount can only be claimed and withdrawn when a person retires or resigns from a particular organization. Furthermore, in some cases, I have read that a particular percentage of PF amount can be withdrawn in the case of an employee's daughter's wedding.
Hence, I request you all to guide me on this and let me know whether the PF can be withdrawn by submitting such a type of (temporary) resignation.
From India, Ahmadabad
Acknowledge(0)Amend(0)
This is not a new thing. Employees have been practicing such things for withdrawing their amount when the need arises. Probably this is due to the fact that people find it difficult to withdraw a loan from other sources. However, employers are expected to guide their employees and help them in granting easy welfare resources so that they do not opt for resignation due to the want of lump sum money from provident funds or other such resources.
From India, Vadodara
Acknowledge(0)Amend(0)
From India, Vadodara
Acknowledge(0)Amend(0)
Not a solution for getting money. Not to be encouraged. It is un-professional on the part of any organisation to allow this knowingly. seshadri
From India, New Delhi
Acknowledge(3)
Amend(0)
From India, New Delhi
Acknowledge(3)Amend(0)
Dear Harshavardhan,
Please guide your employees that PF can be withdrawn not only for the purpose of a daughter's wedding but for many other reasons as well. The file attached here contains those details. If they resign like this, they may lose benefits pertaining to gratuity.
Regards,
Gauri
From India, Mumbai
Acknowledge(4)
Amend(0)
Please guide your employees that PF can be withdrawn not only for the purpose of a daughter's wedding but for many other reasons as well. The file attached here contains those details. If they resign like this, they may lose benefits pertaining to gratuity.
Regards,
Gauri
From India, Mumbai
Acknowledge(4)Amend(0)
Dear Mr.Date, This practice is prevalent. However, kindly check — there are number of reasons for which advance may be taken.Advance is only % of own contribution. Regards, Col.Rathi
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear all,
It is true that few workers opt to withdraw their EPF accumulations as and when they feel any financial crisis, which should be avoided by educating them and also extending possible financial aids. In fact, the purpose of EPF remains unachieved if it is withdrawn before it is required at old age, and such workers are also deprived of long-term benefits like gratuity due to well-established breaks in service.
PK Sharma
From India, Delhi
Acknowledge(0)Amend(0)
It is true that few workers opt to withdraw their EPF accumulations as and when they feel any financial crisis, which should be avoided by educating them and also extending possible financial aids. In fact, the purpose of EPF remains unachieved if it is withdrawn before it is required at old age, and such workers are also deprived of long-term benefits like gratuity due to well-established breaks in service.
PK Sharma
From India, Delhi
Acknowledge(0)Amend(0)
Dear Harsha,
First of all, isn't it easy for employees to exit and rejoin at their convenience in your office? I'm surprised.
Secondly, a 'conditional resignation' is not acceptable in normal circumstances.
Thirdly, from March '14 until today, what actions were taken by your company regarding this resignation? Is this still pending? On the contrary, if your company already accepted the resignation and relieved him, have you settled his PF? Have you reinstated him back on your rolls?
I feel the option exercised by your colleague is an ill-advised solution to his financial problems. As others have pointed out, he should have used the option of 'part final withdrawal' without quitting and closing his PF account. Now, I'm afraid, in the process, he may have lost a substantial amount of gratuity (equivalent to 2 1/2 months' salary) which he would have been eligible for once he completes 5 years of continuous service.
Sorry to see this hasty action.
From India, Bangalore
Acknowledge(3)
Amend(0)
First of all, isn't it easy for employees to exit and rejoin at their convenience in your office? I'm surprised.
Secondly, a 'conditional resignation' is not acceptable in normal circumstances.
Thirdly, from March '14 until today, what actions were taken by your company regarding this resignation? Is this still pending? On the contrary, if your company already accepted the resignation and relieved him, have you settled his PF? Have you reinstated him back on your rolls?
I feel the option exercised by your colleague is an ill-advised solution to his financial problems. As others have pointed out, he should have used the option of 'part final withdrawal' without quitting and closing his PF account. Now, I'm afraid, in the process, he may have lost a substantial amount of gratuity (equivalent to 2 1/2 months' salary) which he would have been eligible for once he completes 5 years of continuous service.
Sorry to see this hasty action.
From India, Bangalore
Acknowledge(3)Amend(0)
Dear Harshavardhan,
This incident happened in our organization during March 2014. One employee, who had been working with us for the past 4 1/2 years, submitted a resignation letter. At the bottom of his letter, he specifically mentioned that he was submitting this resignation only to withdraw his Provident Fund amount. He believed that the organization would accept his resignation for this purpose, remove his name from the company payroll for 3 months, and release his PF after 3 months from the date of resignation. Then, the organization would re-instate him on the payroll with a new appointment letter and a new PF account.
As an HR professional, I was the first person to respond to him, and based on my knowledge, I informed him that this is not the correct process. PF amount can only be claimed and withdrawn upon retirement or resignation from a particular organization. In some cases, a specific percentage of the PF amount can be withdrawn for events like an employee's daughter's wedding.
Therefore, I request your guidance on whether PF can be withdrawn by submitting such a (temporary) resignation.
It is regrettable to mention that the PF amount and account are used as a bank FD by employees. Once employees realize that a specific amount has accumulated in their PF account, they become restless until they withdraw it. In the industry, unprofessional employers encourage such practices to avoid liabilities under the gratuity act or retrenchment compensation. If an employee resigns before completing 5 years (or 1 year as the case may be), the employer is relieved of the mentioned liabilities.
There are certain occasions such as children's weddings, house purchases, LIC premium payments, and medical expenses under which a PF beneficiary can claim a withdrawal. However, a minimum of 5 years of membership under PF is mandatory.
I hope this clarifies the situation. Thank you.
From India, Mumbai
Acknowledge(2)
Amend(0)
This incident happened in our organization during March 2014. One employee, who had been working with us for the past 4 1/2 years, submitted a resignation letter. At the bottom of his letter, he specifically mentioned that he was submitting this resignation only to withdraw his Provident Fund amount. He believed that the organization would accept his resignation for this purpose, remove his name from the company payroll for 3 months, and release his PF after 3 months from the date of resignation. Then, the organization would re-instate him on the payroll with a new appointment letter and a new PF account.
As an HR professional, I was the first person to respond to him, and based on my knowledge, I informed him that this is not the correct process. PF amount can only be claimed and withdrawn upon retirement or resignation from a particular organization. In some cases, a specific percentage of the PF amount can be withdrawn for events like an employee's daughter's wedding.
Therefore, I request your guidance on whether PF can be withdrawn by submitting such a (temporary) resignation.
It is regrettable to mention that the PF amount and account are used as a bank FD by employees. Once employees realize that a specific amount has accumulated in their PF account, they become restless until they withdraw it. In the industry, unprofessional employers encourage such practices to avoid liabilities under the gratuity act or retrenchment compensation. If an employee resigns before completing 5 years (or 1 year as the case may be), the employer is relieved of the mentioned liabilities.
There are certain occasions such as children's weddings, house purchases, LIC premium payments, and medical expenses under which a PF beneficiary can claim a withdrawal. However, a minimum of 5 years of membership under PF is mandatory.
I hope this clarifies the situation. Thank you.
From India, Mumbai
Acknowledge(2)Amend(0)
Dear Gauri,
Your suggestion to get an advance from the PF department for your daughter's marriage is noted. The employee must have completed seven years of service to be eligible for a PF advance; otherwise, there is no chance to receive the advance payment for the marriage.
Yogesh Setia (Sr. HR Executive)
9210106263
From India, Delhi
Acknowledge(0)Amend(0)
Your suggestion to get an advance from the PF department for your daughter's marriage is noted. The employee must have completed seven years of service to be eligible for a PF advance; otherwise, there is no chance to receive the advance payment for the marriage.
Yogesh Setia (Sr. HR Executive)
9210106263
From India, Delhi
Acknowledge(0)Amend(0)
Dear Harsh,
It is totally unprofessional to think that Form 31 is only applicable after 5 years of employment, and that is only for one case: the purchase and construction of land. After 7 years of his/her employment, he can withdraw 50% of the amount for medical treatment and his daughter's marriage.
However, if your employee has a very good track record and a serious condition that requires immediate financial assistance, you can only proceed with approval from the senior management as part of an Internal Employee orientation program.
Alternatively, if your company has an Advance salary policy, you can suggest that as an option.
From India, Delhi
Acknowledge(0)Amend(0)
It is totally unprofessional to think that Form 31 is only applicable after 5 years of employment, and that is only for one case: the purchase and construction of land. After 7 years of his/her employment, he can withdraw 50% of the amount for medical treatment and his daughter's marriage.
However, if your employee has a very good track record and a serious condition that requires immediate financial assistance, you can only proceed with approval from the senior management as part of an Internal Employee orientation program.
Alternatively, if your company has an Advance salary policy, you can suggest that as an option.
From India, Delhi
Acknowledge(0)Amend(0)
As HR Managers / executives do not encourage such withdrawls of PF. or re-instatement of the employees after submission of their resignation
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Hi,
This is very common in industries, particularly in the worker category. The only thing HR can do is guide them for the future benefits of PF. Additionally, the top management should help in employee welfare, which HR should propose to the management with proper documentation.
In a scenario where an employee resigns but is working unregistered in your organization, there is a significant risk involved. To mitigate this risk, it is essential to maintain fair HR practices, educate both employees and employers with supporting documents on the benefits and welfare of PF. If the financial aspect is a concern, the employer can offer assistance.
Regards,
Vihangakash Bhatt
From India, Delhi
Acknowledge(1)Amend(0)
This is very common in industries, particularly in the worker category. The only thing HR can do is guide them for the future benefits of PF. Additionally, the top management should help in employee welfare, which HR should propose to the management with proper documentation.
In a scenario where an employee resigns but is working unregistered in your organization, there is a significant risk involved. To mitigate this risk, it is essential to maintain fair HR practices, educate both employees and employers with supporting documents on the benefits and welfare of PF. If the financial aspect is a concern, the employer can offer assistance.
Regards,
Vihangakash Bhatt
From India, Delhi
Acknowledge(1)Amend(0)
Dear,
Unknown employees are withdrawing their EPF and EPS amounts, but they are lapsing their period of working for 4 1/2 years for EPS. Kindly guide them that in this case, if they want to withdraw their EPF (Form 19), they can do so, but they cannot withdraw Form 10C (EPS).
Thank you.
From India, Bhubaneswar
Acknowledge(1)Amend(0)
Unknown employees are withdrawing their EPF and EPS amounts, but they are lapsing their period of working for 4 1/2 years for EPS. Kindly guide them that in this case, if they want to withdraw their EPF (Form 19), they can do so, but they cannot withdraw Form 10C (EPS).
Thank you.
From India, Bhubaneswar
Acknowledge(1)Amend(0)
PF can be withdrawn by an employee when any event occurs, as mentioned in the attached list, OR when the employee becomes unemployed for 60 days (2 months) after resigning (on the last day of the job). However, if an employee is attempting to withdraw PF with the intention to encash PF/PS amount, it is not allowed.
From India, Pune
Acknowledge(1)Amend(0)
0
0
From India, Pune
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Checked)-PF can be withdrawn by an employee in certain circumstances like unemployment for 60 days after resigning. Intentionally encashing PF is not allowed. (1 Acknowledge point)
0
0
Hi,
This practice is normally adopted by the consent of the employees and employer, which is incorrect and unlawful in regard to the EPF Act. One can withdraw the PF accumulation after retirement or when unemployed at least two months after quitting the job. For advances from PF withdrawal allowed before 5 years of contributing to the PF accumulation, only medical treatment for self, spouse, parents, or children is permissible.
From India, Jhajjar
Acknowledge(1)Amend(0)
This practice is normally adopted by the consent of the employees and employer, which is incorrect and unlawful in regard to the EPF Act. One can withdraw the PF accumulation after retirement or when unemployed at least two months after quitting the job. For advances from PF withdrawal allowed before 5 years of contributing to the PF accumulation, only medical treatment for self, spouse, parents, or children is permissible.
From India, Jhajjar
Acknowledge(1)Amend(0)
i don’t think this is a valid reason for resignation and one should not encourage this. he should have discussed his financial difficulties with the responsible person of the company.
From India, Kottayam
Acknowledge(0)Amend(0)
From India, Kottayam
Acknowledge(0)Amend(0)
Hello sir, I am Shital. I worked in a pharmaceutical company for over a year. Due to personal problems, I left my job almost 10 months ago with a one-day relieving period. Even though 10 months have passed, the HR Manager has not released my EPF amount. Could you please advise me on what steps I should take?
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear Sir,
This type of problem commonly arises among middle-class families and small employees because they require money constantly to support their families. If the government changes the rules for PF withdrawals, such as requiring individuals to work for 5 years to be eligible for a loan, those with less than five years of service may face challenges in managing their finances. They may have plans that exceed their financial capacity. In such a scenario, what options will they have?
I may not be very experienced in this matter, but I urge you to consider this issue.
Regards,
Chandu
From India,
Acknowledge(0)Amend(0)
This type of problem commonly arises among middle-class families and small employees because they require money constantly to support their families. If the government changes the rules for PF withdrawals, such as requiring individuals to work for 5 years to be eligible for a loan, those with less than five years of service may face challenges in managing their finances. They may have plans that exceed their financial capacity. In such a scenario, what options will they have?
I may not be very experienced in this matter, but I urge you to consider this issue.
Regards,
Chandu
From India,
Acknowledge(0)Amend(0)
Good welfare policies and awareness are required to be imparted to employees on PF withdrawal issues. Benevolent funds or other resources, if available, can be opted to help employees. This will not only boost the morale of employees but also instill pride in workplaces, encouraging growth in productivity.
From India, Vadodara
Acknowledge(0)Amend(0)
From India, Vadodara
Acknowledge(0)Amend(0)
Hi Shital,
First of all, no person other than the PF authority is authorized to reject your PF withdrawal. As far as I know, if the HR person in your previous organization is not ready to release your PF amount, you have an option to fill out Form 10C and Form 19 and get them signed by any Gazetted Officer. Then, submit them to the PF office. This may help you out. Seniors, please correct me if I am wrong.
Regards, Harsh
From India, Ahmadabad
Acknowledge(0)Amend(0)
First of all, no person other than the PF authority is authorized to reject your PF withdrawal. As far as I know, if the HR person in your previous organization is not ready to release your PF amount, you have an option to fill out Form 10C and Form 19 and get them signed by any Gazetted Officer. Then, submit them to the PF office. This may help you out. Seniors, please correct me if I am wrong.
Regards, Harsh
From India, Ahmadabad
Acknowledge(0)Amend(0)
Hi, Madam/Sir,
I want to know my PF account balance. How can I know my balance? Earlier, I worked with Tata, but they didn't give me any PF ID or password. However, every month they deducted PF amount from my salary.
From India, NandiniLayout
Acknowledge(0)Amend(0)
0
0
I want to know my PF account balance. How can I know my balance? Earlier, I worked with Tata, but they didn't give me any PF ID or password. However, every month they deducted PF amount from my salary.
From India, NandiniLayout
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The PF account balance can be checked through the EPFO portal using UAN provided by the employer. It's essential to have the UAN for accessing PF details. (1 Acknowledge point)
0
0
Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
HR Manual (Employee Hand Book).doc
Early PF withdrawal won’t be easy.pdf
CiteHR.AI
(Fact Checked)-The reply provided contains accurate information regarding the withdrawal of Provident Fund (PF) amounts, mentioning the necessity of having a minimum of 5 years of membership. The user also correctly highlighted the instances when PF withdrawals are permissible, such as weddings, house purchases, LIC premium payments, and medical expenses. The explanation about unprofessional practices by some employers to avoid statutory liabilities under labor laws is also valid. (1 Acknowledge point)