Chetan,
I assume your comany has taken a certain decision already.
However, to make the discussion a rounded one, I will give a different answer.
1. An employee resigning will be eligible to withdraw his pf after 2 months. He can't file for it immediately as the department needs to verify that he is not going to work elsewhere. I am not sure if this is in the rules or a general practice followed by the department.
2. If he joins back, then you have to inform the pf department that he has rejoined. Unless he has already withdrawn his pf (which could take up to 6 months), you will have to allot the same number. If you give a different number then you have to apply for transfer of his existing balance from previous account. Moment you do that, his pf withdrawal will stop.
3. How much time gap without a salary is he willing to take ? Looks like someone has misguided him about the ability to use pf and gratuity to meet his liability, requirement or may even be for investment somewhere.
4. Giving him a loan is one option. But the danger of such a course of action is that the employee may abscond with the loan standing. Also please remember as per payment of wages act, loan can not exceed 4 months salary (it's called advance in the act)
Giving loans should not become a habit. Getting out of such a habit is painful
From India, Mumbai
2358I assume your comany has taken a certain decision already.
However, to make the discussion a rounded one, I will give a different answer.
1. An employee resigning will be eligible to withdraw his pf after 2 months. He can't file for it immediately as the department needs to verify that he is not going to work elsewhere. I am not sure if this is in the rules or a general practice followed by the department.
2. If he joins back, then you have to inform the pf department that he has rejoined. Unless he has already withdrawn his pf (which could take up to 6 months), you will have to allot the same number. If you give a different number then you have to apply for transfer of his existing balance from previous account. Moment you do that, his pf withdrawal will stop.
3. How much time gap without a salary is he willing to take ? Looks like someone has misguided him about the ability to use pf and gratuity to meet his liability, requirement or may even be for investment somewhere.
4. Giving him a loan is one option. But the danger of such a course of action is that the employee may abscond with the loan standing. Also please remember as per payment of wages act, loan can not exceed 4 months salary (it's called advance in the act)
Giving loans should not become a habit. Getting out of such a habit is painful
From India, Mumbai
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