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EPFO clarifies that PF transfer claims can’t be rejected for overlapping service periods if there are genuine reasons, aiming to prevent delays and ensure smoother processing.
The EPFO clarification comes after it was observed that several regional offices were rejecting transfer claims merely because an employee’s service record showed overlapping employment periods.
PF Claims Rejected For Overlapping Service Period? EPFO Now Clarifies They Shouldn’t BeThe Employees’ Provident Fund Organisation (EPFO) has issued a much-needed clarification that transfer claims cannot be rejected solely due to overlapping service periods, provided there are genuine reasons behind such overlaps. The directive aims to prevent unnecessary delays and rejections in the PF transfer process when employees switch jobs.
In a circular dated May 20, 2025, EPFO said, “It has been observed that transfer claim requests are being rejected due to the issue of overlap in service periods by the regional offices. However, overlapping in services can occur due to genuine reasons and therefore the same should not be considered to be a disqualification per-se in effecting transfers.”
Why Has EPFO Issued This Clarification?
This clarification, issued through a circular dated May 20, 2025, comes after it was observed that several Regional Offices were rejecting transfer claims merely because an employee’s service record showed overlapping employment periods. EPFO noted that these overlaps can occur for valid and unintentional reasons, such as:
- A delay in recording the last working day by the previous employer
- An early joining date with the new employer
- Clerical or administrative errors in service records
Such situations were inadvertently penalising employees and delaying their rightful PF transfers. The latest clarification is aimed at correcting this practice and ensuring smoother claim processing.
What is an Overlapping Service Period?
An overlapping service period refers to a scenario where an employee’s exit date from one organisation and joining date in another appear to coincide or overlap. On paper, it looks like the individual was working in two jobs at once, though in reality, it may just be a reporting or update mismatch.
EPFO’s Updated Guidelines for Processing Such Claims
With this clarification, EPFO has instructed that transfer claims involving overlapping services must be processed, not rejected outright. However, if a genuine need arises to clarify the overlap, the processing officer can seek clarification before approval.
“Only in cases where a genuine need is felt to clarify the overlapping of service, would the claims be processed after obtaining the requisite clarification,” the circular further adds.
What Should Employees Do?
If you’ve changed jobs and your PF transfer claim is showing an overlap in service, rest assured that this is no longer a valid reason for rejection.
If you’re planning to file a PF transfer claim and suspect an overlap in service dates:
- Keep your joining and relieving letters ready.
- Ensure your EPFO account details are updated and linked with Aadhaar.
- If asked for clarification, provide supporting documents promptly.
EPFO’s new directive ensures that genuine cases of overlapping service periods won’t block your PF transfer claims anymore.
Other Recent Simplifications by EPFO
This directive is part of EPFO’s broader effort to simplify PF-related processes and reduce friction in claims and transfers. Some of the key steps recently taken include: Digitisation of withdrawal and settlement claims; no need to submit cancelled cheque leaves or bank-attested passbooks; and faster online claim processing.
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