Dear Team, I am seeking advice from the HR fraternity. We have one company, let's say Company A, with two branches: North Zone and East Zone.
As per management instructions, we have removed our North Zone employee from EPF accounts and intend to rehire them in the East Zone. What impact will this discontinuity of service have on the employee's benefits?
We removed the employee from EPF contributions in September 2023, even though contributions were ongoing. In April, we approved the exit, and previously, the employee was listed as an active member.
Kindly suggest.
From India, Ahmadabad
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As per management instructions, we have removed our North Zone employee from EPF accounts and intend to rehire them in the East Zone. What impact will this discontinuity of service have on the employee's benefits?
We removed the employee from EPF contributions in September 2023, even though contributions were ongoing. In April, we approved the exit, and previously, the employee was listed as an active member.
Kindly suggest.
From India, Ahmadabad
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Clarification on PF Codes and Employee Benefits
The reason for such exiting is not clear. Moreover, if this is one and the same organization, why do you have separate PF Codes? Normally, there can be sub-codes for each branch under each regional office of the EPFO, but under one establishment, there is no possibility of having different PF codes.
By leaving one establishment and then joining another, the employee will not lose any benefits. If you had exited the employees from one PF code in September 2022 (I presume 2023 is a typo error), say 30th September, and enrolled them under the other EPF Code on 1st October 2022, then there will be no NCP days, and it will not affect the employee. Whatever is agreed between your company and the employee is different.
Again, after exiting them in September 2022, why did you wait until April 2023 to approve it?
From India, Kannur
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4556The reason for such exiting is not clear. Moreover, if this is one and the same organization, why do you have separate PF Codes? Normally, there can be sub-codes for each branch under each regional office of the EPFO, but under one establishment, there is no possibility of having different PF codes.
By leaving one establishment and then joining another, the employee will not lose any benefits. If you had exited the employees from one PF code in September 2022 (I presume 2023 is a typo error), say 30th September, and enrolled them under the other EPF Code on 1st October 2022, then there will be no NCP days, and it will not affect the employee. Whatever is agreed between your company and the employee is different.
Again, after exiting them in September 2022, why did you wait until April 2023 to approve it?
From India, Kannur
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