Transfer Of Accounts

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Transfer of accounts

The section 17A in the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 states the Transfer of accounts. Under this section, the employed employee in any factory or an establishment where the Act, applies. Thus, if the employee leaves the employment from the establishment to which the Act is applicable. And gets a re-employment in any other establishment or a factory where the Act, doesn’t apply. Then the accumulated amount to the employee’s credit in the fund or the provident fund shall be transferred. The transfer of the funds shall take place within the specific time set by the Central Government. To the credit of his provident fund account to the new establishment, where he’s a new employee. Also, if the employee desires so, and the rules permits such transfer in relation to that.

The other case, an establishment or a factory to which the Act doesn’t apply, an employee gets the employment. And, if the employee leaves his employment and, gets a re-employment in another establishment where the Act applies. Thus, the accumulation of the employees’ credit in the provident fund of his previous establishment transfers to the new establishment’s account. If the rules of the establishment permit, such provident funds transfer. To the credit of the employee’s account in the fund/ provident fund of the establishment, to his new employment account. Also, If the employee desires so.

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