Can my employer delay payout of my provident fund?


Question:

My employer delaying payout of my provident fund against allegations of attempted theft. They hold no evidence whatsoever of the mentioned crime against me, nor do they have any court judgement to withhold the same. Its already been 60 days since the acceptance of my resignation letter. Should I pursue legal action?

Answer:

Mr(s) Koni, In SA, if your employer has laid a criminal charge with the police (ie they have a case number), they can delay the payout of your provident fund until the case is resolved. If not - and in the absence of any acknowledgement of debt by you - they are not permitted to delay the payment. You need to contact the fund administrator directly, to process the payout. They cannot refuse if the employer has not provided a case number. If they do, you need to lodge a formal complaint with them, and failing this, with the Pension Funds Adjudicator.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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