Ask Experts » Finance and Investments » Investments »

What action to take for delay in withdrawal PF amount due to company's fault?


Date: 17 Aug 2016   Posted By: ASHISH     Group: Finance and Investments    Category: Investments   

I was employee of Softenger India Pvt ltd from November 2013 to November 2015. I had resigned from the company in November and then after 2 months applied for my PF claim final settlement. However, even after 9 monts I have still not received my PF. Whenever I call the organisation, the HR person said to me that your claim is under process. I don't understand how it is possible why the PF withdrawal process should require so many months! Hence I decided to go personally to the EPFO office, Pune. That time, I got the exact reason for delay withdraw PF and realised that the mistake was done by the company's HR person. The Company HR person had wrongly put another employee's name on behalf of my name in UAN so every time my PF was rejected. This information was hidden from me for more than 7 months. In July I personally discussed with the HR person regarding my PF. She apologized for their mistake and said within 25 days I will close your pending case. Now August month is ending (so 9 months) & still she say it is under procees.

So my question is: is it possible for me to get the interest on my PF pending balance or a penalty from the company? After all, it is all the fault of the HR dept. If yes, then how to start the process? If no, then what is the procedure of complaint against the organisation? Please guide me what I should do.


Not got your PF despite many months & due to mistake of the company? Find out with expert guidance the right steps to take to get justice and receive your PF with interest.


Author: Kailash Kumar    19 Aug 2016      Member Level: Platinum     Points : 3  (Rs 3)    Voting Score: 0

Since the author has already visited EPFO office at Pune, it indicates that he is fully aware of the EPFO organization.

Regarding his grievance about the delay in the payment or such other matters, he may register his grievance by visiting the website of EPFO - http://www.epfindia.com/.On the home page under 'Our Services - For Employees' , EPFiGMS (Register your Grievance) link is made available. After clicking on the link, the author may register his grievance under the appropriate category. There is a provision of uploading the related documents also.

The complaint should be specific and to the point without any unnecessary details or description.


Author: Ramachandran Pattabiraman    19 Aug 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

The mistake is done by the HR staff genuinely means the same could be corrected through the management without any problem. The management can send a letter to the PF office about the error occurred and request to rectify the same with relevant records. But if the error or mistake done by volunteer the author could take up this matter to the top management to take up necessary rectification measures as well action against the erring person. In normal course of business the chances of delay from HR department for settling the claims is not possible as there is no hold for delaying the process for the management.

Author: Mahesh    20 Aug 2016      Member Level: Gold     Points : 1  (Rs 1)    Voting Score: 0

The issue seems to be from the company side. And based on my experience with IT industry. You have to be very polite and considerate of the HR staff and company to get your funds processed. Please do not get angry and yell at them to resolve this issue. Instead of solving, this issue may end up being more stress to you. I suggest getting higher management into the play here in order for this to process quickly. You have to also be in touch with the HR department on regular basis. And keep them in loop to make them process your PF. Just make sure you keep the line of communication open here and avoid going through legal ways for handling the people for now.

Author: Reena Upadhya    20 Aug 2016      Member Level: Silver     Points : 1  (Rs 1)    Voting Score: 0

Since your company made a delay in payment of your PF then not only it has to pay it at the earliest but is also liable to pay interest penalty on it. Interest penalty depends on the number of delayed days.

Ask HR of the company for how many days will she require more and by that time if she does not fulfill her promise then you can file a complain against her to the chief vigilance officer who is appointed by labor ministry. It works in the interest of employees and will help you to sort out your problem at the earliest.

It is a crime and thus you can complain about the same to PF and ESI office where company is located.


Author: Jayesh Pawar    22 Aug 2016      Member Level: Gold     Points : 4  (Rs 4)    Voting Score: 0

I think if the responsible person has acknowledged the mistake and apologized for the same mistake, then you must give chance to them to correct their mistake. These kind of administrative problem occurs in many organizations, where employees face lot of problems related to PF especially.
Suing the organization will give you the momentary satisfaction, but I think you should be concerned more about the settlement of your PF account. But as one of the member replied, that you can log a grievance on the official website.

I believe even if you are not contributing to your PF account, government is still giving the interest as per the applicable rate till 3 years, so definitely you are not losing any interest.

Also additionally I will suggest you to transfer your PF to the new account rather than doing final settlement (I am taking final settlement as withdrawal), because you will be taxed for the PF withdrawals below 5 years account.


Author: Partha Kansabanik    22 Aug 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

In this particular case, the company made a delay in payment of your PF. So, the company has to pay it at the earliest and it is also liable to pay the penal interest on it. Penal Interest depends on the number of delayed days of payment. However, before lodging any complaint, I would suggest you take up the matter with the higher management in writing to amicably sort out the issue.

Author: NK SHARMA    24 Aug 2016      Member Level: Gold     Points : 1  (Rs 1)    Voting Score: 0

Register your grievance with epfo first by asking the final date of receipt of your dues with interest. If you do not get satisfactory reply you have two options 1. go to consumer court 2. register the grievance on PMO sie www.pgportal.gov.in. I was having similar case that was resolved .




Post Answer



You must Sign In to post a response.


Post Answer        





Related Questions
  • Return to Question Index
  • Ask Question to Experts


  • Awards & Gifts
    Top Contributors
    TodayLast 7 Daysmore...

    Online Members

    More...
     
    ISC Technologies, Kochi - India. © All Rights Reserved.