Provident fund policy - if an employee leaves the job before six months, the PF amount contributed by the employer will be deducted from their last salary?
Can an employer create a policy that if an employee leaves the job before six months, the PF amount contributed by the employer will be deducted from their last salary?
This is not provided in the Act, in deed there is a specific provision that employer contribution of PF cannot be deducted from the earnings of the employee (Section 12). In case you still deduct the contribution paid to PF, this would be a breach of the Act and accordingly the penal provisions in the EPF Act 1952 will be attracted.
Any deduction of amount already paid would amount to illegal deduction under payment of wages act, apart from being violation of PF Act.
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