A Complete Guide to PF Formalities When an Employee Rejoins Your Company
Overview : When a former employee rejoins your organisation, it is crucial for the HR department to correctly manage their Provident Fund (PF) account in compliance with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. While the process seems straightforward, the EPFO portal’s design can be confusing, which can result in errors such as duplicate account creation. This guide provides the correct, actionable steps for handling a rejoining employee, including how to fix issues if the portal does not function as expected.
💡 The Golden Rule: One Employee, One UAN
The most critical concept in PF management is the Universal Account Number (UAN). As mandated by the EPFO under Para 26A of the Employees’ Provident Funds Scheme, 1952, the UAN is a permanent, lifelong number for every employee. All their PF accounts (Member IDs) from various employers are linked to this single UAN. Therefore, when an employee returns, you must use their existing UAN. The goal is to reactivate their old Member ID with your establishment, not create a new one.
🔄 What is the Correct Procedure for a Rejoining Employee?
When an employee leaves, the employer marks a “Date of Exit” on the portal as required by Para 36 of the EPF Scheme, 1952. The common point of confusion upon their return is the lack of an “Edit” or “Re-join” button on the Member Profile page.
The correct method is not to edit the old profile but to use the ‘Register Individual’ function. The system is designed to use the existing UAN to identify the employee as a rejoining case and reactivate their previous Member ID. Creating a new Member ID for the same establishment is an incorrect practice that can lead to compliance issues under Section 14 B of the EPF Act and complicate the employee’s service history.
📋 Step-by-Step PF Process for a Rejoining Employee
Here is the precise process HR managers must follow on the EPFO Unified Employer Portal:
Step 1: Obtain the Employee’s UAN: Request the employee’s existing UAN. As a former employer, you may also have it in your records. Do not attempt to generate a new one.
Step 2: Log in to the EPFO Employer Portal: Access the Unified Portal for Employers (https://unifiedportal-emp.epfindia.gov.in) with your establishment’s credentials.
Step 3: Navigate to ‘Register Individual: On the main dashboard, go to the Member tab and select Register Individual from the dropdown menu. This is the correct path for both new and rejoining employees.
Step 4: Enter Employee Details: Enter the employee’s existing UAN and other details like Aadhaar. The system will auto-populate the employee’s permanent information (Name, DOB, etc.).
Step 5: Enter New Joining Information: The portal will prompt you for the “Date of Joining”. Enter the date the employee has rejoined your company. The system should recognise this as a rejoining case and, in the backend, link this new employment period to their old Member ID.
Step 6: Approve the Details: After filling in the details, approve the registration using your Digital Signature Certificate (DSC). In a successful scenario, this action reactivates the employee’s original Member ID, and you can resume contributions into that same account.
⚠️ What if the Portal Creates a Duplicate Member ID?
Sometimes, due to a portal glitch, following the correct procedure may still result in the creation of a new, duplicate Member ID for the employee within your establishment. This is incorrect and must be fixed immediately. Since a new, active Member ID has been created, the EPFO system will now automatically direct all contributions for this UAN to this new ID. The old balance and service history, however, are now stranded in the old, inactive Member ID.
Action Plan to Fix the Issue
- Consolidate Funds and Service History (Employee’s Action): The only way to fix this is to merge the old account into the new one. The employee must take action:
- Log in to their Member e-Sewa portal.
- Navigate to Online Services > One Member – One EPF Account (Transfer Request).
- Initiate a transfer FROM the old Member ID TO the new, active Member ID.
- Approve the Transfer (Employer’s Action): The transfer request will appear on your Employer Portal under Online Services > Transfer Claims. You must digitally approve this request using your DSC to complete the process. This will merge the old balance and service history into the new active account, creating a single, unified record.
🏢 Handling the Scenario: Employee Worked Elsewhere Before Rejoining
If an employee leaves your company (A), works for another (B), and then rejoins you, they will have two inactive Member IDs (one from A, one from B).
- Follow the steps above to reactivate their Member ID with your company (A).
- The employee is then responsible for initiating a PF transfer using Form 13 to move the accumulated balance from their Company B account to their newly reactivated Company A account.
Conclusion
Managing PF for a rejoining employee requires following a specific process via the Register Individual function. Always verify the outcome to ensure a duplicate Member ID has not been created. If it has, take immediate corrective action by facilitating a PF transfer to consolidate the accounts. This ensures ECR contributions are correctly reconciled and the employee’s service history remains intact.
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