Can Employers Legally Hold Final Salary and PF Due to Missing Handover Items?

Dear Sir/Madam,

If an employee left a month and a half ago, completed their handover documentation, but their final salary along with the PF has not been processed, and after this month and a half period since the last working day, the employer pointed out something missing and then asked the employee to come back and get it sorted, stating that if not, they will not release the final settlement. My question here is, according to the law, how long can the employer hold onto the final salary and the provident fund? In this particular case, do they have the right to hold onto it considering things might have gone missing after the employee had left?

First of all, just because some item is missing, it cannot be attributed to the employee who left. Did he do a handover and take over? Was the said item under his charge? Many questions will arise. Is the item very costly? PF balance cannot be held up anyway. At best, you can speak to the employee and try to find out. Systems to check items held by employees before exit need to be strengthened. Mere suspicion is no ground to hold up his salary, etc.