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Achal Sudheer (Senior Software Test Engineer)     01 June 2012

Employer not signing the pf transfer/withdrawal form

Hi All,

I recently changed my job and the formality was done with ease. Based on my request and also mutual agreement with the employer, i was releived from my job 25 days in advance. I have received all the formal documents associated with it. During my working stay, i was asked to digitally sign a mutual agreement stating that i would not join an of the clients of my old employer directly.

Now in my new job, i am asked to work at client place, which is the client of my old employer also. The problem is that my ex-employer is creating a problem stating that i have breached the agreement by joining the client, which i have not done as i am not the direct employee and just working as contratual employee.

Now the HR of my old employer is not processing/signing the PF for my request to withdraw/transfer the pf amount to the new pf account created at my new employers place. The HR states that i am bound to legal action and hence they cannot process my request .

Could you please confirm the following:

1. Am I bound to legal action. (Note: the ex-employer has already sent me a lawyer notice which states that i have to get releived from the clients place asap and also pay them 5000 Rs for the 25 days early relival. I haven not responded to the notice)

2. What are the other possibilities for withdrawing the PF?

Regards,

Achal S



Learning

 5 Replies

Kumar Doab (FIN)     03 June 2012

You have posted that:

--"i was asked to digitally sign a mutual agreement stating that i would not join an of the clients of my old employer directly."

You have yourself answered that you have not joined the client directly.

Did the company provide you copy of the digital contract in advance and sufficient time to go thru it?

Did the company provide you signed copy of the digital contract?

--"Based on my request and also mutual agreement with the employer, i was relieved from my job 25 days in advance. I have received all the formal documents associated with it."

Did you receive and sign FNF statement. Once the notice pay was waived off company can not demand it in childish manner, now.

--"The HR states that i am bound to legal action and hence they cannot process my request.”

Is this statement verbal or in writing? You may record the statement ( audio/visual).

PF is immune from any attachment.

Can the amount standing to the credit of any member in the Fund be assigned, charged or attached?: The amount standing to the credit of a member in the Fund cannot be assigned, charged or attached under any decree or order of any Court. Similarly, the amount standing to the credit of a member in the Fund at the time of his death is free from any debt or other liability incurred by the member before his death and cannot be attached under any decree or order of any Court. {Section 10}

--Do you have the proof of delivery of PF transfer forms to Ex. Employer and acknowledgment of forms even if by email or recorded conversation? If yes you can succeed with your complaint to APFC, RPFC, Addl.CPFC, in concerned o/o PF commissioner with a copy to CPFC.

You may approach a competent and experienced service lawyer and serve a fitting reply to legal notice.

It shall be better to transfer the PF as you shall be eligible for pension after 10 years. If you withdraw before hand you shall loose major part of pension component.

If you have decided to withdraw, you may get the forms attested by either of designated authorities e.g. Bank Manager and submit to concerned o/o PF commissioner.

 

 

 

1 Like

Sudhir Kumar, Advocate (Advocate)     05 June 2012

Whatsoever be the reasons. The employer cannot refuse to attest withdrawal form.  He is liable for prosecution. It appears you have not complained to the RPFC.

 

As far as transfer to new accoutn is concerned, it is not understood how old employer comes in picture.

 

You are working in another company.  Legally, you are not entitled for withdrawal and you are entitled to transfer only.  Unless you falsely declare to be not employed (please read the declaration on the form).

 

As far as issue of bond is concerned, it is clear that you have joined clinet's company as outsources and your skill andknowledge is put to advantage of client.  Being on pay rolls of another company is clearly a cloak and apprehension of your previous employer is correct.

 

Sudhir Kumar, Advocate (Advocate)     05 June 2012

Whatsoever be the reasons. The employer cannot refuse to attest withdrawal form.  He is liable for prosecution. It appears you have not complained to the RPFC.

 

As far as transfer to new account is concerned, it is not understood how old employer comes in picture.

 

You are working in another company.  Legally, you are not entitled for withdrawal and you are entitled to transfer only.  Unless you falsely declare to be not employed (please read the declaration on the form).

 

As far as issue of bond is concerned, it is clear that you have joined clinet's company as outsources and your skill andknowledge is put to advantage of client.  Being on pay rolls of another company is clearly a cloak and apprehension of your previous employer is correct.

1 Like

vijaya (asscociate consultant)     31 January 2013

hi,

I was working with my previous employer for 1.2 yrs.after joinin new employer i have requested for PF transfer  on 02/feb/2012(apprx) and when i saw the status online on jan/23/2013 its been rejected  and now i need to re initiate the transfer procedure.

The problem is my preveous employer company is closed and for transfer i need to mention the address .As compnay is closed. which address do i need to give.

IF i want to withdraw how can i get the previous employer sign.kindly help

Sudhir Kumar, Advocate (Advocate)     31 January 2013

for transfer of PF to new account,your previous employer is not in picture.


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