Can Employers Deduct Loan Advances from Employee PF Withdrawals? Seeking Legal Insights

imranalam50
Dear Seniors/Colleagues,

An employee takes an advance as a loan from his employer that can be recovered from his monthly salary in installments. After some time, the employee resigns from the organization and submits the PF withdrawal as per the rules.

Now, the employer submits the PF withdrawal with a letter stating that Rs.... so and so amount is due from the employee as an advance, and please recover it from his EPF remittance.

The question now is, can the PF commissioner recover the advance amount that was taken by the employee from his employer or not? If yes, please mention the clause/rules/section of the EPF Act.

Regards,
Imran Alam
bpugazhendhi
Recovery from EPF Amount

No recovery can be made by the RPFC from the EPF amount. Even court attachment is not possible on the EPF amount.

Please let me know if you need further assistance.

Regards,
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