Can My Company Legally Withhold P.F., Superannuation, and Gratuity After Termination?

Hi, I worked in a multinational company for more than 18 years. The company terminated me without any notice or investigation. The charges involved large sums of money used for personal gain, as well as alcohol use on the office premises. The company did not mention the specific amount. Can the company stop my P.F., Superannuation, and gratuity? I held an Executive position. My leave encasement is also due for 3 months. I was terminated one month ago. Please guide me.

On legal grounds, if your company hasn't given you any written notice explaining the termination cause, they can't withhold any of your pending dues. I would suggest that you consult a legal advisor and send a notice to your company. In such cases, companies most likely do not want to get involved and would prefer to close the chapter with mutual consent, considering the impact on their image in the market.

Regards,
Harpreet Walia

Your termination will be invalid if the employer hasn't given a show-cause notice and not conducted an inquiry. In such a case, your termination will be invalid, and you are eligible for all the benefits.

If an inquiry has been conducted and charges against you are proven beyond doubt, they can withhold the gratuity up to a certain amount, but they cannot fully retain the gratuity amount. The outcome depends on the details and nature of the charges held against you.

Warm regards,
Kathirvel M.

Your company cannot withhold your gratuity, PF, or other labor law benefits as the company itself is at a disadvantage for not complying with labor law regulations. Therefore, you need not worry about these benefits. You can discuss this matter with your HR manager, or alternatively, you have the option to take the matter to the labor court.

Please let me know if you need any further assistance.

Thank you.

Opportunity for the Accused

Opportunity has to be given to the accused person to hear the other side, or else it's against the principles of natural justice. In your case, he didn't give you the chance to voice your concerns, so all the actions taken against you do not fall under legal terms.

Your termination itself is not valid, and benefits have to be paid.

In your case, it seems you are not bothered about employment; you are very much concerned about the benefits part. Anyway, going to labor court depends on your length of employment.

I think you are performing managerial functions. Anyway, all the best!

In no case can the employer withhold the PF. Please fill up the forms, get them attested by your employer or your bank manager, and submit them to the RPFC.

CHANDOK
RPFC (Retd.)
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If the company finds any misconduct, misbehavior, misappropriation, or unsatisfactory behavior by an employee, then according to the terms of employment, the employer has the right to terminate, but not without proper evidence and conducting an inquiry into the delinquent. Even if you are found guilty of the above-mentioned disciplinary actions, the employer does not have the right to withhold your PF, Superannuation, and Gratuity unless it is explicitly stated in your appointment letter as company terms and conditions. Such action would be illegal. You do not need to worry about your monetary benefits. You can approach the concerned Labor officer to recover your entitled benefits. For more information, feel free to contact me at [Phone Number Removed For Privacy Reasons].

Regards,
Rammi24