Employee Final Settlement - CiteHR
Saswatabanerjee
Partner - Risk Management
Talentsorcerer
Talent Acquisition Expert
Sushilkluthra@gmail.com
Consultant In Legal Matters
+1 Other

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Dear All, Greetings!!!!
I would like to get a suggestion on a possible issue we have come across in our company. One of the Employees was terminated due to serious and offensive conduct issues. The employee's final settlement is on hold (Salary+PF), can i please get the experts suggestion to close the issue.

Anithapoojary2: If an employee has been terminated, you can withhold his salary. PF can't be withheld - Governed by the Indian Government - please sign his PF form and hand it off to him.
Hope this helps

You have provided insufficient information Please us complete details, and what advice. / clarification are you asking for
Hi,
i am working as hr executive, i need need clarification regarding employees F&F
one employee going retire on 01.02.2015 but his having loan outstanding amount 80000/- from employee,
what bases we need collect balance amount please guide me.
Regards,
Prashant
9341123033

Dear Prashant,
At the time of disbursement of loan, your office should have calculated the instalments in such a manner that the loan is repaid much before his retirement. You will not be able to recover out of PF and gratuity as these amounts cannot be attached. Thus out of earned leave dues you can recover the loan. Still if you cannot recover fully, then firstly get demand draft infavour of company and if that is not possible, cheque in favor of company with a forwarding letter that against repayment of outstanding dues he has enclosed the cheque. After the gratuity amount or PF amount has been deposited and encashed by him, that amount is attachable.
Thanks
Sushil

Dear Mr. Prashant & Mr. Sushil K Luthra,
Even after the retiral benefits have been paid and deposited by ex. employee these do not loose their character and hence can not be attached........
You may find the discussion and judgments attached in following thread as useful:
http://www.lawyersclubindia.com/forum/P-f-gratuity-90740.asp#.VMXdzNKUcqN
It shall be better if the loan is recovered from employee by cheque as suggested above or from other payouts or thru recovery suit in accordance with provisions of law....

Dear Anithapoojari,
If terminated the FnF dues and service certificate has to be supplied on the last day in office alongwith termination order.
Declinature to attest PF forms,withholding PF is offence and punishment may involve jail time........
As rightly suggested don't block and disburse all FnF payouts and supply all documents....

Dear Ddoaba,
May I cite the relevant legal position regarding attachment of PF and gratuity after it reaches the hands of beneficiary through Kerala High Court decision following Apex Court decision below:
Kerala High Court
P.O. Madhavan Nambiar vs Syndicate Bank on 20 June, 1991
Equivalent citations: AIR 1991 Ker 367
“From the aforesaid passage it is clear that when once the amount is received by the employee on his retirement, attachment is possible and lawful land the exemption provided in Section 60(1)(k) will not be available. To the same effect is the decision of the Supreme Court in Union of India v. Radha Kissen, AIR 1969 SC 762 and the Full Bench decision of the Madras High Court in Joseph v. Official Assignee AIR 1956 Mad 283. In that view of the matter, the execution court was right in ordering attachment of the money lying in deposit in the name of the 2nd judgment-debtor towards the decree-debt”.
Thanks and regards
Sushil

Hi , (I Would Like To Get A Suggestion On A Possible Issue We Have Come Across In Our Company. One Of The Employees Was Terminated Due To Serious And Offensive Conduct Issues. The Employee's Final Settlement Is On Hold (Salary+PF), Can I Please Get The Experts Suggestion To Close The Issue)
Thank you for the response given towards above issue.
SaswatBanarjee : My question was to know how best can the situation be handled ? since the issue is sensitive.
Inline to this i would also like to know ,
if we can hold back the employees exit documents and also get a written agreement saying there would be no claims made by the employee over his sal and exit docs or any alternative suggestion for this.
Thank you.

Dear All,
thank you for your valuable suggestion
Regards,
Prashant

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