Answer to a question from a reader

What do I do now that the bargaining council has transferred my provident fund to my new employer?

The short answer

Provident fund can only be paid if the industry of your new job is different from the industry of your old job.

The whole question

Dear Athalie

How can I get my provident fund payout after I resigned from the company I was working for? I applied for my provident fund payout, but then, during my notice period, I was offered and accepted another job in the motor industry, and now the Motor Industry Bargaining Council will not pay out my provident fund as it has been transferred to my new employer.

The long answer

Unfortunately, it is not possible for you to be paid out for your provident fund while you are still working in the motor industry. The Auto Workers’ and Motor Industry Provident Funds are compulsory for all workers in the motor industry. If you had never worked in the motor industry before, you would have a six months’ grace period to be registered onto the relevant provident fund, but after that, it would be compulsory to be a member of the provident fund. That is why MibCo cannot pay you out. 

Wishing you the best,
Athalie

Answered on Sept. 14, 2023, 2:08 p.m.

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