Can a Company Recover Damages from an Employee's PF Fund After Fraudulent Termination?

If any employee has been terminated due to fraudulent activity and he/she has purposely caused damage to the company's assets, can the management adjust from the employee's PF fund.

Dear Rekha,

In any case, no organization can even touch the employee PF fund, as per my knowledge.

Regards,

RAvindra

Hi Rekha,

The company cannot utilize the PF money of any employee to compensate for damages made to the property of the company. However, the management can withhold the PF money due to the employee by citing misconduct reasons and not signing the PF withdrawal form.

The employee can transfer the fund to the next organization to which he/she is joining. There are other options available to withdraw the PF money without the consent of the previous employer.

Regards,

Yes, Rekah, it's not possible. The PF amount is something which an employee has 100% rights.

Sohail

PF is the complete right of the employee. The account is under the employee's name, and he/she has the right. Even if some dues are there to be paid by the employer, they cannot withhold - as per my knowledge and experience.

Vijay Bhasker V.

No employer can legally withhold the PF of an employee. Even if the employer refuses to sign the PF withdrawal forms, one provision in the PF department is that the amount can be withdrawn without the employee's signature.

We recently witnessed a similar case where the employer declined to sign forms #19 & 10C. In response, the Bank Manager signed on the employer's column, allowing the concerned employee to withdraw the amount. This Bank Manager can be from any bank. Additionally, a gazetted officer can also sign the employer column, but a stamp is required.

Thanks,
Rekha
HR Manager