Can an Employer Withhold Provident Fund if Notice Period Isn't Served? Seeking Advice

krishnasnehasingh
Dear All,

There is a situation:

An employee who has been working with one organization for the last two years and, due to some personal problem, he has to leave the organization without serving the notice period. Is there any rule that allows the organization to stop or not release the Provident Fund amount of the employee?

Kindly suggest to me.
Yaasmin
Simply tell him to pay off the amount of his pay against the notice period. Why hold his PF amount? It's part of his wages. Have you given him an offer letter or appointment letter stating to serve the notice period before leaving the job?

Anyhow, the employee has to come to you for approval and company stamp on the PF form. At that point, you can simply ask him to serve the notice period or pay the one-month gross pay against it. Please do not indulge in the wrong way benefiting the organization; PF amount is part of his wages.
abbasiti
PF is under EPFO, Ministry of Labour, Government of India. No employer has the power to deny it.

Regards,
Abbas. P.S
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