Hi,
I had earlier worked for more than 4.5 yrs for a Central PSU which has more than 600 employees and has been making profits. It has its own PF trust. 10% of my basic pay was deducted during my tenure and my employer was also contributing the same amount. (My basic pay was more than 7500 at my joining and my last basic was 15000 at the time of resignation)I have recently resigned and joined an other company.
On my resignation, my old company has settled my PF after giving away a cheque to me which consisted of only my contribution along with interest on the same. When I asked about the employer's contribution, they had shown me a rule which was formed by my old company that says "employer's contribution shall be given only an employee works for a minimum period of 5 years in the company".
I will be greatful if you can clarify the following points:
1. Is there any such provision for PSU s(Profit making) to form their own rules when the PF is managed by their own PF trust by superceding the Govt rules?
2. Is there any rule as per the act which permits the employer to stipulate any time frame for giving their contribution also?
3. Can the trust itself settle the PF amount without employee's consent (given that Employees always have an option to transfer the fund to new employer) as I heard that PF is settled only by EPFO.
In short, Can I demand for employer's contribution also despite the fact that their internal rule does not allow the same before 5 years of service in the same company
Regards,
RPV
From India, Bangalore
I had earlier worked for more than 4.5 yrs for a Central PSU which has more than 600 employees and has been making profits. It has its own PF trust. 10% of my basic pay was deducted during my tenure and my employer was also contributing the same amount. (My basic pay was more than 7500 at my joining and my last basic was 15000 at the time of resignation)I have recently resigned and joined an other company.
On my resignation, my old company has settled my PF after giving away a cheque to me which consisted of only my contribution along with interest on the same. When I asked about the employer's contribution, they had shown me a rule which was formed by my old company that says "employer's contribution shall be given only an employee works for a minimum period of 5 years in the company".
I will be greatful if you can clarify the following points:
1. Is there any such provision for PSU s(Profit making) to form their own rules when the PF is managed by their own PF trust by superceding the Govt rules?
2. Is there any rule as per the act which permits the employer to stipulate any time frame for giving their contribution also?
3. Can the trust itself settle the PF amount without employee's consent (given that Employees always have an option to transfer the fund to new employer) as I heard that PF is settled only by EPFO.
In short, Can I demand for employer's contribution also despite the fact that their internal rule does not allow the same before 5 years of service in the same company
Regards,
RPV
From India, Bangalore
Dear rpv,
Your points are clarified as under:
1.PF Trusts generally make their own rules which are okayed by the PF Authorities. Thumb rule being that you can spercede Govt. rules to make it more beneficial for the employees, not otherwise.
2&3. Answer is no.
In short, you can demand for employer's contribution.
KKT
From India, Delhi
13Your points are clarified as under:
1.PF Trusts generally make their own rules which are okayed by the PF Authorities. Thumb rule being that you can spercede Govt. rules to make it more beneficial for the employees, not otherwise.
2&3. Answer is no.
In short, you can demand for employer's contribution.
KKT
From India, Delhi
What Bhavik is saying is correct that Govt. Deptt.s have their own PF Rules. But in case of Govt. Deptt.s, employer does not contribute anything towards PF as Govt. employees are entitled to Pension.
In this case as RPV has suggested, employer was also contributing towards PF. Therefore, it does not look like a Govt. Deptt.
Now let us suppose that there was no Trust, then all money would have gone to PF Commissioner and then RPV would have become entitled to employer's share also and provisions of Trust can not be less favorable to employees than Govt. Rules in this regard. On this logic,RPV becomes entitled to employer's share. Inspite of this if employer refuses to part with employer's share, RPV should take up the matter with PF Authorities.
KKT
From India, Delhi
In this case as RPV has suggested, employer was also contributing towards PF. Therefore, it does not look like a Govt. Deptt.
Now let us suppose that there was no Trust, then all money would have gone to PF Commissioner and then RPV would have become entitled to employer's share also and provisions of Trust can not be less favorable to employees than Govt. Rules in this regard. On this logic,RPV becomes entitled to employer's share. Inspite of this if employer refuses to part with employer's share, RPV should take up the matter with PF Authorities.
KKT
From India, Delhi
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