Is It Fair for Employers to Deduct PF and Gratuity from Full and Final Settlement? How Should I Respond?

Hello Team, Please, can anyone suggest a solution to my question below? I have resigned from my last company, and the company has provided me with a relieving letter. Additionally, they have already recovered my leave encashment, notice period of three months, and the last day's salary. Now, when I asked my employer to pay my Gratuity and PF amount, he told me that even this would be recovered from my side. I have only mentioned in my resignation that I will "cover Notice Period from F&F," nothing else.

Query on PF and Gratuity Recovery

Can anyone suggest to me if PF and Gratuity are really recovered from F&F after recovering all amounts against the notice period, leaves, and the last 10 days' salary? Please advise me on how I can reply to my employer accordingly.

Dear Kajal,

When it comes to the notice period, the employer has the right to recover from your full and final settlement. However, no employer has the authority to recover your PF claim amount and gratuity amount from your full and final settlement.

Regards,
Vineet

Legally, there is no such thing as the recovery of gratuity. PF, ESI, IT, and other statutory deductions can be made from an employee's salary.

Hello Vineet,

Thank you so much. Also, please, if you can, suggest one more thing: if I have completed my exit formalities where I did not have any company dues pending, and I had never applied for any type of loan or other financial matters, can the company still recover my PF amount? If not, according to the law, what steps should I take if my employer has given me a false reason?

I did not give a prior notice period, but my resignation was accepted by the employer, and he gave me a relieving letter at the same time when I left.