Garment industry seeks relaxation from EPFO withdrawal order

Tirupur Exporters Association (TEA) today requested the Centre to withdraw an amendment which barred employees from withdrawing the employers' contribution to provident fund before 58 years of age.
In a letter to Labour Minister Bandaru Dattatreya, TEA President A Shaktivel said that a lot of ripples have generated in Tirupur knitwear garment cluster, which employs four lakh workers directly, with 70 per cent of women, on the scheme.
Further to this amendment, employees can withdraw the PF account from his own total contribution including interest thereon up to the date and the employers contribution can be withdrawn only after attaining of the age of 58 years, he said.

Normally girls at the age of 18 were joining with the garment units and leaving at the age of 23/24 before getting married and settle somewhere else and this has actually created an alarming situation in Tirupur and all these girls were now having apprehension that they would not get the employer's PF contribution immediately and they have to wait for till they attain the age of 58 years, Shaktivel said.
"We actually fear that the notification may trigger for exodus of labour and in such scenario, the garment exporting units would not be in a position to immediately fill up the labour shortage gaps, will lead to the chain reaction, ultimately, the exports business will drastically reduce from the present exports level of Rs 23,500 crore and will also in fact, affect the labours who would continue with the exporting units," he said.

Considering the fact and the gravity of the situation emerging out of this notification, TEA request the Minister to give a relief measure and remove the condition put forth in the notification immediately and allow the workers to get employer's contribution also while they were resigning Shaktivel said.