Type:Trigger Frequency: Quarterly

Action to be taken:
For all PF Funds exempt under Section 17 or Para 27 of the Scheme, if a member leaves for re-employment in another establishment to which this act applies, transfer the amount to the credit of the employee in the PF Fund to the PF fund of the new establishment or the PF Scheme Fund as the case may be within 3 months of the date on which information regarding re-employment is received.

Audit Requirement:
Have PF dues of all employees who have left the company been transferred ?

Supporting Documents:
Details of PF transfers of employees who have left the company

Related Triggers:
Discharge or Dismissal Of Employee
Employee Leaving The Company

Related Keywords:
Dismissal, Discharge, Termination
Employee Leaving The Company
Exemptions
Provident Fund
Provident Funds (Exemptions)

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Related Sections:
Employees Provident Fund and Miscellaneous Provisions Act, 1952
17:Power to exempt:
(1) The appropriate Government may, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt, whether prospectively or retrospectively, from the operation of all or any of the provisions of any Scheme-
(a) any establishment to which this Act applies if, in the opinion of the appropriate Government, the rules of its provident fund with respect to the rates of contribution are not less favourable than those specified in Section 6 and the employees are also in enjoyment of other provident fund benefits which on the whole are not less favourable to the employees than the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of a similar character; or
(b) any establishment if the employees of such establishment are in enjoyment of benefits in the nature of provident fund, pension or gratuity and the appropriate Government is of opinion that such benefits, separately or jointly, are on the whole not less favourable to such employees than the benefits provided under this Act or any Scheme in relation to employees in any other establishment of a similar character.
Provided that no such exemption shall be made except after consultation with the Central Board which on such consultation shall forward its views on exemptions to the appropriate Government within such time limit as may be specified in the Scheme.
(1-A) Where an exemption has been granted to an establishment under clause (a) of sub-section (1),-
(a) the provisions of Sections 6, 7-A, 8 and 14-B shall, so far as may be, apply to the employer of the exempted establishment in addition to such other conditions as may be specified in the notification granting such exemption, and where such employer contravenes, or makes default in complying with any of the said provisions or conditions or any other provision of this Act, he shall be punishable under Section 14 as if the said establishment had not been exempted under the said clause (a);
(b) the employer shall establish a Board of Trustees for the administration of the provident fund consisting of such number of members as may be specified in the Scheme;
(c) the terms and conditions of service of members of the Board of Trustees shall be such as may be specified in the Scheme;
(d) the Board of Trustees constituted under clause (b) shall-
(i) maintain detailed accounts to show the contributions credited, withdrawals made and interest accrued in respect of each employee;
(ii) submit such returns to the Regional Provident Fund Commissioner or any other officer as the Central Government may direct from time to time;
(iii) invest the provident fund monies in accordance with the directions issued by the Central Government from time to time;
(iv) transfer, where necessary, the provident fund account of any employee; and
(v) perform such other duties as may be specified in the Scheme.
(1-B) Where the Board of Trustees established under clause (b) of sub-section (1-A) contravenes, or makes default in complying with, any provisions of clause (d) of that sub-section, the Trustees of the said Board shall be deemed to have committed an offence under sub-section (2-A) of Section 14 and shall be punishable with the penalties provided in that sub-section.
(1-C) The appropriate Government may, by notification in the Official Gazette, and subject to the condition on the pattern of investment of pension fund and such other conditions as may be specified therein, exempt any establishment or class of establishments from the operation of the Pension Scheme if the employees of such establishment or class of establishments are either members of any other pension scheme or proposed to be members of such pension scheme, where the pensionary benefits are at par or more favourable than the Pension Scheme under this Act.
(2) Any Scheme may make provision for exemption of any person or class of persons employed in any establishment to which the Scheme applies from the operation of all or any of the provisions of the Scheme, if such person or class of persons is entitled to benefits in the nature of provident fund, gratuity or old age pension and such benefits, separately or jointly, are on the whole not less favourable than the benefits provided under this Act or the Scheme :
Provided that no such exemption shall be granted in respect of a class of persons unless the appropriate Government is of opinion that the majority of persons constituting such class desire to continue to be entitled to such benefits.
(2-A) The Central Provident Fund Commissioner may, if requested so to do by the employer, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt, whether prospectively or retrospectively, any establishment from the operation of all or any of the provisions of the Insurance Scheme, if he is satisfied that the employees of such establishment are, without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of life insurance, whether linked to their deposits in provident fund or not, and such benefits are more favourable to such employees than the benefits admissible under the Insurance Scheme.
(2-B) Without prejudice to the provisions of sub-section (2-A), the Insurance Scheme may provide for the exemption of any person or class of persons employed in any establishment and covered by that scheme from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or class of persons are more favourable than the benefits provided under the Insurance Scheme.
(3) Where in respect of any person or class of persons employed in an establishment an exemption is granted under this section from the operation of all or any of the provisions of any Scheme (whether such exemption has been granted to the establishment wherein such person or class of persons is employed or to the person or class of persons as such), the employer in relation to such establishment-
(a) shall, in relation to the provident fund, pension and gratuity to which any such person or class of persons is entitled, maintained such accounts, submit such returns, make such investment, provide for such facilities for inspection and pay such inspection charges as the Central Government may direct;
(b) shall not at any time after the exemption, without the leave of the Central Government, reduce the total quantum of benefits in the nature of pension, gratuity or provident fund to which any such person or class of persons was entitled at the time of the exemption; and
(c) shall, where any such person leaves his employment and obtains re-employment in another establishment to which this Act applies, transfer within such time as may be specified in this behalf by the Central Government, the amount of accumulations, to the credit of that person in the provident fund of the establishment left by him to the credit of that person's account in the provident fund of the establishment in which he is re-employed or, as the case may, in the Fund established under the Scheme applicable to the establishment.
(3-A) Where, in respect of any person or class of persons employed in any establishment, an exemption is granted under sub-section (2-A) or sub-section (2-B) from the operation of all or any of the provisions of the Insurance Scheme (whether such exemption is granted to the establishment wherein such person or class of persons is employed or to the person or class of persons as such), the employer in relation to such establishment-
(a) shall, in relation to the benefits in the nature of life insurance, to which any such person or class of persons is entitled, or any insurance fund, maintain such accounts, submit such returns, make such investment, provide for such facilities for inspection and pay such inspection charges, as the Ce Employees Provident Fund Scheme, 1952
Chapter:Preliminary| 2:Definition:
In this Scheme, unless the context otherwise requires-

(a)" Act " means the Employees Provident Funds and Family Pension Fund Act, 1952 (19 of 1952);
(b) Deleted.
(c)"children" means legitimate children and includes adopted children if the Commissioner is satisfied that under the personal law of the Member adoption of a child is legally recognised;
(d)"Commissioner" means a Commissioner for Employees Provident Fund appointed under Section 5-D of the Act and includes a Deputy Provident Fund Commissioner and a Regional Provident Fund Commissioner;
(e) "continuous service" means uninterrupted service and includes service which is interrupted by sickness, accident, authorised leave, strike which is not illegal, or cessation of work not due to the employees fault;
(f) "excluded employee" means-

(i) An employee who, having been a Member of the Fund, withdrew the full amount of his accumulation in the Fund under clause (a) or (c) of sub-paragraph (1) of Paragraph 69;

(ii) an employee whose pay at the time he is otherwise entitled to become a Member of the Fund, exceeds fifteen thousand rupees per month;

Explanation.- "Pay" includes basic wages with dearness allowance, retaining allowance (if any) and cash value of food concessions admissible thereon;

(iv) an apprentice;

Explanation.- An apprentice means a person who, according to the certified standing orders applicable to the factory or establishment, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government;

(g)"family" means-
(i) in the case of a male member, his wife, his children, whether married or unmarried, his dependant parents and his deceased sons widow and children:

Provided that if a Member proves that his wife has ceased, under the personal law governing him or the customary law of the community to which the spouses belong, to be entitled to maintenance she shall no longer be deemed to be a part of the members family for the purpose of this Scheme, unless the Member subsequently intimates by express notice in writing to the Commissioner that she shall continue to be so regarded; and

(ii)In the case of a female member, her husband, her children, whether married or unmarried, her dependant parents, her husbands dependant parents and her deceased sons widow and children;

Provided that if a Member by notice in writing to the Commissioner expresses her desire to exclude her husband from the family, the husband and his dependant parents shall no longer be deemed to be a part of the members family for the purpose of this Scheme, unless the Member subsequently cancels in writing any such notice;

Explanation.- In either of the above two cases, if the child of a Member or, as the case may be, the child of a deceased son of the Member has been adopted by another person and if, under the personal law of the adopted, adopter, adoption is legally recognised such a child shall be considered as excluded from the family of the Member;

(h) "financial year" means the year commencing on the first day of April;
(i)"Government Security" shall have the meaning assigned to it in the Public Debt Act, 1944 (18 of 1944);
(j)"Inspector" means a person appointed as such under Section 13 of the Act;
(k)"quarter" means a period of three months commencing on the first day of January, the first day of April, the first day of July and the first day of October of each year;

(kk) "Seasonal factory" means a factory which is exclusively engaged in the manufacture of tea, sugar, rubber, turpentine, rosin, indigo, lac, fruit and vegetable preservation industry, rice milling industry, dal milling industry, cashewnut industry, stemming or re-drying of tobacco leaf industry, tiles industry, hosiery industry, oil milling industry, licensed salt industry, jute baling or pressing industry, fireworks and percussion cap works industry, ice or ice-cream industry or cotton ginning, baling and pressing industry;

(kkk) "seasonal establishment" means a plantation of tea, coffee, rubber, cardamom, pepper, a coffee curing establishment, a fire-clay mine or a gypsum mine;

(l)" Trustee" means a Member of a Board of Trustees; and
(m) all other words and expressions shall have the meaning respectively assigned to them in the Act.