AR
Dear All ,
What will happen if an employee doesnot pay his dues(Loan, retention amount , training expenses ,service bond etc) at the time of resigning from the organisation due to inability to pay the amount .Can a company hold his Full & Final Settlement or should they deduct the amount form his PF accumulation & compelete his full & final settlement .As per my understanding PF cannot be attached against any due payments.
Regards,
Anju

From India, Mumbai
svsrana
41

Anju, i dislike mentioning it but your company stands to get a major non conformance for social compliance. any loan/ advance plus service bonds etc are an Indicator for "Bonded Labour". surya
From India, Delhi
Amitmhrm
496

Dear Anju,
If an employee is unable to pay his/her dues.. then company is liable to deduct that from his Full & Final Settlement..
But yes he can't do anything deducted from the PF, as that is another body and they are not suppose to withdraw any fund from there..
But yes even if after adjustment with your Full & Final Settlement, any amount remains dues.. then they may take some legal actions.. If they have all the details in written.. in support of that..
Regards,
Amit Seth.

From India, Ahmadabad
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