Can Employers Halt PF Payments After Terminating an Employee for Policy Breach?

Dear Colleagues,

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

Kindly reply.

Thanks,
Nazneen

Dear,

In my view, the employer has the legal right to stop the payment of PF as per the case you mentioned. I would request you to visit www.epfoindia.com and, if possible, consult the RPF officer regarding this matter. This will provide you with a better understanding of the situation.

Regards,
Vipin

As per the EPF Act, if the employee has left the company, then the employer does not have any legal right to stop the payment of PF, even in the case of theft/fraud.

Regards,

Sanjeev Kwatra
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Hi all,

The PF of an employee cannot be attached by any condition imposed by the employer or any other authority. There is also another provision that the Provident Fund cannot be attached, not even by another bank or competent 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) The amount standing to the credit of any member in the Fund or of any exempted employee in a provident fund shall not 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. 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) 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 authorized by the said Scheme or rules, vest in the nominee. It shall be free from any debt or other liability incurred by the deceased or the nominee before the death of the member or of the exempted employee and shall also not be liable to attachment under any decree or order of any court.

(3) The provisions of subsection 1 and subsection 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 agree with your views that the employer can't stop/deduct any amount from the employee's PF account. However, please advise me on how to settle the matter if an employee has left the organization without giving any notice, taken advance from the company, and without clearing the dues.

PLEASE ADVISE!!!

With kind regards,
P.K. SINGH

As rightly quoted by Mr. Kwatra, even the PF cannot be attached by any court on account of any charges. Obviously, an employer does not have any right to disturb PF.

Regards,

Aseem