Can My Previous Employer Withhold My Provident Fund for Not Serving Notice Period?

Hi! My name is Ankur Roy. Actually, I left my previous organization (Trent Ltd) in January 2007 after working there for almost 15 months. According to my contract, I was required to provide a one-month notice period before leaving, but I had to join my current organization within a week, so I couldn't fulfill that requirement.

Now, I have a question regarding my provident fund with Trent Ltd. Can they withhold my provident fund due to not serving the full one-month notice period? If not, what is the procedure for me to receive my provident fund amount? Kindly advise.

Dear Ankur,

Provident Fund is a social security benefit that cannot be attached. Your previous employer cannot seize your P.F. amount just because you could not give adequate notice before leaving and joining another organization. Having said that, I would advise that you should liquidate all your outstanding dues, including pay in lieu of notice period, if any.

You have not mentioned whether yours is an exempted trust or not. In case your present organization is also covered under the P.F. Act, you may apply through your present employer for the transfer of your past P.F. accumulation to your present account.

Ashok

No need to worry as the PF amount cannot be withheld by the Employer. At best, while getting the PF papers, they may insist on the Notice pay. I think you should pay that amount as it is an agreed term between both of you, and you should adhere to it.

With Regards,

V. Sounder Rajan

Hi,

You need not worry about your PF since no employer can attach PF dues for any reason. You have to submit a PF application in Form 19 and Form 10-C and submit it to the PF office through your employer. If your employer is not forwarding your application to the PF office, you can bring this to the notice of the labor commissioner for taking remedial measures.

R. Sreenivasan