Rekha was an employee of State Power Generation Ltd. As informed to her, the company has a Trust for Contributory Provident Fund, as provisions of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 are not

CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2025
Rekha was an employee of State Power Generation Ltd. As informed to her, the company has a Trust for Contributory Provident Fund, as provisions of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 are not applicable to it. After working for more than 7 years, Rekha left State Power Generation Ltd. and joined XYZ Ltd., having more than 1000 employees on the roll. The HR department of XYZ Ltd. informed Rekha that the amount of the provident fund in State Power Generation Ltd. cannot be transferred to EPFO, as the provisions of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 are applicable to the company. In above given situation, answer the following: How can Rekha receive the amount of Provident Fund from previous company?

Answer & Explanation:

Section 17A(1) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 provides that : (1) where an employee employed in an establishment to which this Act applies leaves his employment and obtain re-employment in another establishment to which this Act does not apply, the amount of accumulations to the credit of such employee in the Fund, or as the case may be, in the Provident Fund of the establishment left by him shall be transferred within such time as may be specified by Central Government in this behalf to the credit of his account in the Provident Fund of the establishment in which he is re-employed, if the employee so desires and the rules in relation to that Provident Fund permit such transfer. Sub-section (2) further provides that where as employee employed in an establishment to which this Act does not apply, leaves his employment and obtain re-employment in another establishment to which this Act applies, the amount of accumulations to the credit of such employee in the Provident Fund of the establishment left by him, may, if the employee so desires and also rules in relation to such Provident Fund permit, be transferred to the credit of his account in the Fund or as the case may be, in the Provident Fund of the establishment in which he is re-employed. Thus, Rekha can receive her Provident Fund amount by applying directly to the Contributory Provident Fund Trust of State Power Generation Ltd. for settlement of her dues.

Topics: Industrial and Labour Laws

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