Early Release vs. Notice Period: What's the Official Last Working Day in This Scenario?

If the employee has given notice until July 31st, and the employer has released the employee early on July 8th but is paying the salary until July 31st as compensation, then what should be the last working date? Should it be July 31st or July 8th?

Hi, whatever the last working day the employer is marking as per their records, including PF employer login, will be the last working day. In this case, as the employer relieved the employee on 8th July, the LWD should be 8th July.

If the employer is allowing the employee to be relieved on 8th July, then the amount paid for the remaining days may be either counted as compensation for early relieving or the service period marked as leave. In the former case, the date of exit should be 8th July, and in the latter case, it will be 31st July. The employee should ensure which date the employer is going to mark as the exit date in PF records because nowadays there are overlapping dates due to negligence.

If the employee is joining another organization before 31st July, then he should get his date of exit (last working day) marked on 8th July. Conversely, if he is not joining another organization before 31st July, it is desirable to have it on 31st July. The only difference is that in the latter case, the amount the employer has paid for the period from 9th July till 31st July will be accounted as Salary, which will qualify for PF deduction and contribution, whereas in the former being a compensation not while on duty, no contribution becomes payable.

Last working day considerations

The last working day should be mentioned as 8th July because the physical presence was until 8th July. It is another thing that you are paying him until 31st July. As Madhu Sir said, if an employee joins another company on 15th July, it could be a problem for him to register in EPF. On the other hand, it is not suitable to show the exit date as 31st July because if any accident or incident occurs between 8th and 31st July involving the employee, the entire responsibility will fall on the principal employer. For example, if the person is in an accident or commits wrongdoing, he may claim that he was present in the company and that his last working day was the 31st instead of the 8th. Therefore, please mention the date of exit as the 8th, not the 31st.