Leaving a job is not one day fast track process, when one wishes to leave his current employer and forgo his job, a person has to follow a set of procedures. The procedure involves material steps which are aimed at securing various other factors about leaving the job.
One such factor is securing the Provident Fund Amount, this pf amount is amount present in favour of the person, from the Employee Provident Fund which is a retirement savings scheme available for the benefit of all salaried employees and is backed by the government on which fixed interest is paid.
In India, the Employees Provident Funds and Miscellaneous Provisions Act 1952 governs the law relating to PF scheme, which covers establishment in which 20 or more persons are employed.
Withdrawal of the PF amount is also governed by the act, according to the EPF Act, for the purpose of final settlement of the P.F account one has to retire from the service after attaining the age of 55 years. However the act also provides provision for settlement in two other cases; a) when the person is near retirement and b) when the person wishes to leave the job prematurely i.e. before reaching 55 or nearing retirement age.
The total balance of the PF fund includes the employees contribution and that of the employer along with the accursed interest, and in case of situation a), the employee can withdraw up to 90% of the total fund and in case of situation b) the employee in such cases withdraw full balance if he is out of the employment for 60 straight days.
The procedure for withdrawal of PF fund involves following certain steps, primary steps include, gaining information on empomloyer’s internal procedure for the same and collecting the form 10c and 19. An important step in filling for withdrawal of PF involved filling of Indemnity Bond on Affidavit.
The Employee Provident Fund Schemes under scheme72(6)(ii) states that if an employee’s account remains unclaimed for three years from the date on which the amount became due, the same will be transferred to Unclaimed Deposit Account. And when a claim comes after such transfer, the amount will be paid out of it, but, only after a confirmation that the claimant is the member or is authorized to claim the amount on behalf of the member. This reason has to be made on an affidavit and has to be notarized before the notary officer.
The contents of the affidavit needs to provide a general reason as to why the account was left unattended and that why money was not withdrawn from.
Affidavit made for the purpose of PF fund withdrawal may contain reason for non-activity. Reasons for the same may be stated as, “as I kept the account pending for transfer to new account when I would get transferred to new establishment unfortunately that did not happen and in the due course and due to oversight, I missed to withdraw the funds”, or if you had been on an overseas assignment one can mention that as a reason for non-withdrawal of funds previously.
Thus Affidavit in response to the non-usage of the PF fund account is a necessary procedure when one wish to withdraw the PF fund, affidavit for the same needs to be drafted accordingly and cautiously, and only then funds from the PF account can be realized.
Article by – Kritika Goyal
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