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Tirupur Exporters’ Association (TEA) today urged the Union Labour Ministry to rollback the amendment stating that employers’ contribution withdrawal could only be done when the employee was 58 years, in the Employees’ ProvidentFund Organisation (EPFO).
In a letter to Minister Bandaru Dattatreya, TEA president A. Shaktivel said that the amendment has created ripplesin Tirupur knitwear garmentcluster, which employed four lakh workersdirectly, with 70 per cent of women being part of EPFO with an option for withdrawalon cessation of employment.
Further  to  this  amendment,  the  employees  can  withdraw  the  PF  account  from  their  own  total contribution including interest thereonup to date, but the employers’ contribution could be withdrawn only after they complete 58 years, he said.
Normally girls aged 18 joined garmentunits and left at the age of 23 / 24 before getting married.The new amendment has created an alarming situation in Tirupur as these women were now apprehensive about having to wait till they turned 58 to receivethe employers PF contribution, Shaktivelsaid.
Apart from this, Tirupur cluster was also receivingmigrant workers from North India, numbering about
75,000. The inflow from the northernstates was still increasing day by day, which was actuallyhelping to meet the labour shortage.
So, there was this apprehension that the amendment would restrict the inflow of workers to Tirupur cluster.
We actually  fear that the notification  may trigger  the exodus  of labour  and in such scenario,  the garmentexporting units would not be in a position to immediately fill up the labour shortagegaps. This will lead to a chain reaction and ultimately the export businesswill drastically reducefrom the present
Considering the gravity of the foreseen repercussions, 
TEA has urged the Minister to provide relief and remove  the  condition  put  forth  in  the  amendment  immediately.  This  would  allow  workers  to  get employers contribution when resigned, Shaktiveladded

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