Sanjeev Kwatra
Epf/esi Consultant
Human Resource
Manager- Hr & Admin
Aseem Kumar
Logistics And Quality
+1 Other

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Dear Collegues,
I would like to know if a particular employee has been terminated due to serious breach of policy , can the employer stop his PF payment .
I am aware that an employee can get the claim form signed by gazetted officer instead of employer.
Kindly reply .

In my view, employer has legal right to stop the payment of Pf as the case said by you. I would request you to go through & if possible ask the RPF officer in this regard so that u can get a better picture of the same.

NO, as per the EPF act. if the employee has left the co. then employer do not have any legal right to stop the payment of Pf . even in the case of theft/fraud also.
Sanjeev Kwatra

Hi to all,
PF of employee cannot be attached by any condition by the employer or any other authority. There is also another provision that Provident Fund cannot be attached even by other bank or competant authority.
Best Regards
Prashant Patil

Dear All

As per section 10 of the EPF act no one can stop the PF amount.

10. Protection against attachment.
(1) amount standing to the credit of any member in Fund or of any exempted employee in a provident fund shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the member or the exempted employee, and neither the official assignee appointed under the Presidency Towns Insolvency Act, 1909 (3 of 1909) nor any receiver appointed under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to have any claim on, any such amount.
(2) </SPAN>Any amount standing to the credit of a member in the fund or of an exempted employee in a provident fund at the time of his death and payable to his nominee under the Scheme or the rules of the provident fund shall, subject to any deduction authorised by the said Scheme or rules, vest in the nominee and shall be free from any debt or other liability incurred by the deceased or the nominee before the death of the member or of exempted employee and shall also not be liable to attachment under any decree or order of any court.
(3) </SPAN>The provisions of sub-section 1 and sub-section 2 shall, so far as may be, apply in relation to the pension or any other amount, payable under the Pension Scheme and also in relation to any amount payable under the Insurance Scheme as they apply in relation to any amount payable out of the Fund

Dear friends, I am agreed with your views that the employer can't stop/deduct any amount from the employees PF account, but please tell me how to settle the matter if the employee has left the organization without giving any notice, taken advance from the company, without clearing the dues. PLEASE ADVICE !!! With kind regards, P.K.SINGH
As rightly quoted by Mr. Kwatra, even the PF can not be attached by any Court on account of any charges,obviously an employerhas not any right to disturb PF Regards Aseem
Dear All,
I agree with all of you but still I feel that the Act need to be modified.
For instance, suppose an employee leave the company with company cash, company laptop and other valuable properties, in that condition, how an employee can recover if the ex employee doesn't show up?
In that condition, employer will have to file legal suit which is expensive, time consuming and meaningless.

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