Respected Seniors,
I'm from a hospital functioning in Pakistan. We have a Provident Fund policy here in which this amount is paid at the end of employment.
My question is if any employee needs a PF amount during his employment, can he request to withdraw part of the PF or the full PF amount? And is there any legal binding that impedes it? Or are there any record-keeping complications for the accounts department?
Our policy is to pay the PF amount only at the end of employment. Should we need to amend this policy? Our CFO suggested to those requests that we should end their employment to pay PF and rehire those employees.
Please give your valuable advice.
Thank you.
From Pakistan, Karachi
Acknowledge(0)
Amend(0)
2I'm from a hospital functioning in Pakistan. We have a Provident Fund policy here in which this amount is paid at the end of employment.
My question is if any employee needs a PF amount during his employment, can he request to withdraw part of the PF or the full PF amount? And is there any legal binding that impedes it? Or are there any record-keeping complications for the accounts department?
Our policy is to pay the PF amount only at the end of employment. Should we need to amend this policy? Our CFO suggested to those requests that we should end their employment to pay PF and rehire those employees.
Please give your valuable advice.
Thank you.
From Pakistan, Karachi
Acknowledge(0)Amend(0)
Hi,
Some general information that might help you understand the situation. Labor laws and Provident Fund regulations can vary from country to country, so it's crucial to consult with a legal professional in Pakistan for advice specific to your jurisdiction. However, here are some general considerations:
Legal Framework:
In many countries, Provident Fund regulations are designed to provide financial security to employees after retirement or at the end of their employment. Early withdrawals may not be allowed unless under specific circumstances defined by the law.
Policy Amendments:
If your current policy stipulates that Provident Fund amounts are payable only at the end of employment, you may need to review and potentially amend this policy to accommodate situations where employees might need to access their Provident Fund during their employment.
Employee Requests:
Depending on the legal framework and your policy, employees may or may not have the right to withdraw Provident Fund amounts during their employment. If your policy restricts such withdrawals, employees might not be legally entitled to receive these funds before the end of their tenure.
Record-Keeping:
All financial transactions, including Provident Fund disbursements, should be accurately recorded. If changes are made to the policy or if withdrawals are allowed, the accounts department should maintain detailed records to ensure transparency and compliance.
Termination and Rehiring:
The suggestion to terminate employment and rehire employees to facilitate Provident Fund withdrawals may have legal and ethical implications. Terminating and rehiring employees for this purpose could be seen as a workaround and may not align with labor laws or the intended purpose of Provident Funds.
Legal Consultation:
It is highly advisable to consult with a legal professional in Pakistan who is familiar with labor laws and Provident Fund regulations. They can provide specific guidance based on the legal framework in your country and help you navigate any necessary policy changes. It's crucial to strike a balance between meeting the financial needs of employees and ensuring compliance with applicable laws and regulations. Always seek professional legal advice to make informed decisions in accordance with local laws. Thanks,
From India, Bangalore
Acknowledge(0)Amend(0)
Some general information that might help you understand the situation. Labor laws and Provident Fund regulations can vary from country to country, so it's crucial to consult with a legal professional in Pakistan for advice specific to your jurisdiction. However, here are some general considerations:
Legal Framework:
In many countries, Provident Fund regulations are designed to provide financial security to employees after retirement or at the end of their employment. Early withdrawals may not be allowed unless under specific circumstances defined by the law.
Policy Amendments:
If your current policy stipulates that Provident Fund amounts are payable only at the end of employment, you may need to review and potentially amend this policy to accommodate situations where employees might need to access their Provident Fund during their employment.
Employee Requests:
Depending on the legal framework and your policy, employees may or may not have the right to withdraw Provident Fund amounts during their employment. If your policy restricts such withdrawals, employees might not be legally entitled to receive these funds before the end of their tenure.
Record-Keeping:
All financial transactions, including Provident Fund disbursements, should be accurately recorded. If changes are made to the policy or if withdrawals are allowed, the accounts department should maintain detailed records to ensure transparency and compliance.
Termination and Rehiring:
The suggestion to terminate employment and rehire employees to facilitate Provident Fund withdrawals may have legal and ethical implications. Terminating and rehiring employees for this purpose could be seen as a workaround and may not align with labor laws or the intended purpose of Provident Funds.
Legal Consultation:
It is highly advisable to consult with a legal professional in Pakistan who is familiar with labor laws and Provident Fund regulations. They can provide specific guidance based on the legal framework in your country and help you navigate any necessary policy changes. It's crucial to strike a balance between meeting the financial needs of employees and ensuring compliance with applicable laws and regulations. Always seek professional legal advice to make informed decisions in accordance with local laws. Thanks,
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
PF is a terminal benefit for employees that you can only give them at the time of termination. Before this, you cannot provide it. Some companies offer loans within this, then manage internally, calculate at the time of separation, and deduct departmental penalties within this. Then, they give the remaining amount upon separation. By law, you must provide this upon separation. There are three types of PF used in Pakistan: PF, VPF, and a government one which only the government follows, and it includes pension as well.
From Pakistan, Karachi
Acknowledge(0)Amend(0)
PF is a terminal benefit for employees that you can only give them at the time of termination. Before this, you cannot provide it. Some companies offer loans within this, then manage internally, calculate at the time of separation, and deduct departmental penalties within this. Then, they give the remaining amount upon separation. By law, you must provide this upon separation. There are three types of PF used in Pakistan: PF, VPF, and a government one which only the government follows, and it includes pension as well.
From Pakistan, Karachi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc