Hi, If workers leave the organisation and join again do we need to open there PF/ESI account again. What is the other solution.Please reply. Regards Parul
From India, Pune
7From India, Pune
hi
parul
u no need to open a separate account t for ESIC because now u have one online number . PF u have to take new no from new organization u have joined because PF online is still under process.
regds
From India, Hyderabad
parul
u no need to open a separate account t for ESIC because now u have one online number . PF u have to take new no from new organization u have joined because PF online is still under process.
regds
From India, Hyderabad
First of all thanks for the reply. Actually problem is workers they join the company and then they leave after some period. They withdraw their money and after sometime they come back and join again, so the process again need to continue (means again there account will be open and this thing goes on.What could be the best solution for this because these workers are not ready understand all the probe we face while keeping the same person records.
From India, Pune
From India, Pune
Dear Parul,
As and when a new employee joins your organization and the new joiner is your ex-employee & coverable under the statutory compliance then there are certain points to be considered.
If the earlier EPF A/c is not settled then the same will be continued. But, if it is settled then new account will be awarded accordingly.
Whereas, now ESI is completely online and the IP Numbers are need not to change, then the same ESI Number can be continued.
And, if the a/c was already settled at the time of job leaving last time, then (s)he will be treated as a new employee and all the other benefits will also calculated from the new date of joining.
Hope this information will help you. Cheers.
From India, Delhi
As and when a new employee joins your organization and the new joiner is your ex-employee & coverable under the statutory compliance then there are certain points to be considered.
If the earlier EPF A/c is not settled then the same will be continued. But, if it is settled then new account will be awarded accordingly.
Whereas, now ESI is completely online and the IP Numbers are need not to change, then the same ESI Number can be continued.
And, if the a/c was already settled at the time of job leaving last time, then (s)he will be treated as a new employee and all the other benefits will also calculated from the new date of joining.
Hope this information will help you. Cheers.
From India, Delhi
Dear Pandey,
In your case, what is more important to note is whether their old PF a/c. is still open (in other words, so long as they have not withdrawn their PF amount) the same a/c could be continued. By their own option, already closed by withdrawing their PF amount there is no question of continuing the very same closed a/c. So when the old a/c is already closed where is the option to continue? But by chance while leaving your organisation they have not closed their PF a/c and still open at the time of rejoining back to your co. then they can continue with the same old PF a/c. Otherwise you have to open new PF a/c with new No. You have to advise those persons who are leaving not to withdraw and close their PF a/c. instead, they should be advised either to transfer to a new employer or keep it open in the interim for some time. This is more beneficial to them as the past service will be necessary to qualify for EPF Pension which is minimum of 10 yrs. So if they go on closing their PF a/cs for every change, they cannot get eligibility for pension, which is due only when attaining the age of 58 yrs.
From India, Bangalore
In your case, what is more important to note is whether their old PF a/c. is still open (in other words, so long as they have not withdrawn their PF amount) the same a/c could be continued. By their own option, already closed by withdrawing their PF amount there is no question of continuing the very same closed a/c. So when the old a/c is already closed where is the option to continue? But by chance while leaving your organisation they have not closed their PF a/c and still open at the time of rejoining back to your co. then they can continue with the same old PF a/c. Otherwise you have to open new PF a/c with new No. You have to advise those persons who are leaving not to withdraw and close their PF a/c. instead, they should be advised either to transfer to a new employer or keep it open in the interim for some time. This is more beneficial to them as the past service will be necessary to qualify for EPF Pension which is minimum of 10 yrs. So if they go on closing their PF a/cs for every change, they cannot get eligibility for pension, which is due only when attaining the age of 58 yrs.
From India, Bangalore
Dear Parul,
As per ESIC & EPFO - a company shouldn't open new accounts for employees if they have an existing account.
Firstly, when an employee leaves your organisation :
a) as per ESIC the same number can & should be carried forward to any other esic covered establishment.
b) as per EPFO, an employee is not allowed to withdraw funds unless they remain unemployed for minimum of two months from last working date. So if any employee joins back within two months, then its simple for you to retain their existing PF number.
Secondly, explain to them the benefit of retaining the same PF/ESIC number. For eg:- when they need to apply for disability claim or sickness claim ESIC takes into account their average salary for last x months. Also the full claim can be availed only if IP has been contributing for 06 months continuously. Similarly for EPFO, inform the employees that the fund in the account is eligible for interest every year and if they withdraw, their opening balance and interest amt earned is lower but most importantly incase of any untoward event and claim of Pension, EPFO too considers last X months of average salary.
You can make the employees more aware of ESIC & EPFO benefits by putting up circulars on the notice board. The following links will help you educate your employees on the benefits -
Epfo (Govt. of India) & ESIC.NIC.in
Regards,
Deena Jagasia
From India, Mumbai
As per ESIC & EPFO - a company shouldn't open new accounts for employees if they have an existing account.
Firstly, when an employee leaves your organisation :
a) as per ESIC the same number can & should be carried forward to any other esic covered establishment.
b) as per EPFO, an employee is not allowed to withdraw funds unless they remain unemployed for minimum of two months from last working date. So if any employee joins back within two months, then its simple for you to retain their existing PF number.
Secondly, explain to them the benefit of retaining the same PF/ESIC number. For eg:- when they need to apply for disability claim or sickness claim ESIC takes into account their average salary for last x months. Also the full claim can be availed only if IP has been contributing for 06 months continuously. Similarly for EPFO, inform the employees that the fund in the account is eligible for interest every year and if they withdraw, their opening balance and interest amt earned is lower but most importantly incase of any untoward event and claim of Pension, EPFO too considers last X months of average salary.
You can make the employees more aware of ESIC & EPFO benefits by putting up circulars on the notice board. The following links will help you educate your employees on the benefits -
Epfo (Govt. of India) & ESIC.NIC.in
Regards,
Deena Jagasia
From India, Mumbai
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