Good news for employees, EPFO issues new circular allowing transfer claims of subscribers not to be rejected if...

The Employee Provident Fund Organisation has issued new guidelines regarding PF transfer claims. The move brings relief to employees making it easier for them to switch jobs without hassle, as the new guidelines enable employees to access their savings more easily and benefit from a smooth PF transfer process. In the new circular, EPFO instructed the employees who are struggling to access their savings due to minor overlaps in service periods won’t lead to rejections. 

In the new circular, the EPFO instructed all its offices on May 20 about this big update. “It has been observed that transfer claim requests are being rejected due to the issue of overlap in service periods by the regional offices. However, overlapping in services can occur due to genuine reasons and therefore the same should not be considered to be a disqualification per se in effecting transfers,” read the circular.

For the unversed, the overlap in service period occurs when an employee is shown to be working in two different companies on the same date. The situation arises due to discrepancies in the service dates between old and new jobs. Now, with the EPFO updated policy, transfer claims where a previous PF account is consolidated with a current one for easier withdrawal of savings should be processed even if there are overlapping service dates. According to the new circular, such claims should only be put on hold if there's a genuine need for clarification. 

“Only in cases where a genuine need is felt to clarify the overlapping of service, would the claims be processed after obtaining the requisite clarification,” the order added. With the new guidelines, employees who have been locked out of their savings due to overlapping would now be relieved. The new circular comes in a series of reforms by the Union Labour Ministry at the retirement funds body. The EPFO earlier streamlined withdrawal and settlement of claims, by relaxing rules. When employees were required to submit clearances from and attestation by their HR department, now it has been moved completely online. Also, employees won’t need to submit bank attested updated passbooks and cheque leaves for filing claims.