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Monday, August 26, 2013

Employee can't be denied PF due to transfer to another div

An employee covered under the employees provident fund (EPF) act will not cease to enjoy the benefit merely on being transferred to another division of a organisation, the apex consumer commission has ruled.

"Once an employee is transferred to another division within the organisation, his coverage under the EPF Act is not suspended," the National Consumer Disputes Redressal Commission (NCDRC) said.

A bench headed by Justice K S Chaudhari made the observation while upholding the orders of the Odisha state and district consumer fora which had directed the Regional Provident Fund Commissioner (RPFC) to pay the pension amount for G S N Reddy's service since 1981 with the Podagada and Kapur dam divisions till his death in 1987.

RPFC had contended that Reddy was not entitled to pension as there was a break in his membership under the EPF scheme when he was transferred from one division to another in November 1983.

The Odisha state commission had upheld a district forum's order directing the RPFC to pay the pension amount to the widow of the carpenter, G S N Reddy who had died in 1987 while in service.

Reddy's wife G Easwaramma had moved the district forum for payment of the pension amount that according to her, he was entitled to get.

The RPFC's argument was rejected by the NCDRC which said, "The contention of the petitioner (RPFC) that by transfer from one establishment to another establishment his (Reddy) membership got suspended does not have any force.

"In this case, it is a transfer from one division to another division within the same organisation, and by no stretch of imagination, it can be counted as a break."

The commission also noted that as per records submitted before it, Reddy had become a member of the fund with effect from July 31, 1983 and contribution to the provident fund was regularly made till his death in March 1987.

"It is held, therefore, that the state commission or the district forum have not committed any illegality or irregularity," the bench said.

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