Hello, we have recently terminated a manager for manipulating the records and mishandling cash. We have asked him to clear the amount, which exceeds one lakh. His clearance is on hold; however, he is requesting PF withdrawal. Can we clear his PF without settling other dues? Kindly guide. Awaiting your valuable input.
Regards,
Smita
From India, Pune
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1Regards,
Smita
From India, Pune
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Technically you can’t hold back the PF. What you can do, you can register a case of forgery in the name of that employee.
From Nigeria, Lagos
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From Nigeria, Lagos
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Augusta rightly said you cannot hold back any individual's PF, as per the law. Actually, PF is his earned salary which he parts with for his future. There are many cases where the same had been done when a fraud had been committed by the individual, but when the individual went to court, the verdict was in favor of the individual, and the company was penalized. So please consult a legal person before stopping his PF.
Regards,
Anita
From India, Mumbai
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Regards,
Anita
From India, Mumbai
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Technically, we can't enjoy the power of stopping PF withdrawals; it doesn't come under our purview. You can lodge an FIR against him and/or stop or deduct from gratuity and ex gratia if being paid in your organization.
Thanks,
Nirbhaya
From India, Bankura
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Thanks,
Nirbhaya
From India, Bankura
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Yes, I do agree with the above statement. We cannot forfeit the PF amount in any case, but we can forfeit his Gratuity and Bonus based on the losses that he made to your company. I guess this might help you.
Regards,
Harchand
From India, Kolkata
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Regards,
Harchand
From India, Kolkata
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Withholding PF Amount: Legal and Practical Considerations
There is no means by which an employer can withhold the PF amount of an employee. If it's a cash manipulation case, you can try by lodging a police complaint and filing the copy with the local PF commissioner. Then it is totally up to the discretion of the PF commissioner whether to honor it or not.
Legally, after six months of his termination, the employee can happily apply for the PF withdrawal on his individual capacity. If a listed bank manager certifies his signature where he has an account, he will automatically get his PF money directly to his account. So practically, you cannot hold anyone's PF money.
Try to find out other means to recover the fund, and it should be strictly and legally followed with the laid-down procedures, like a show-cause, then an inquiry by an independent authority, and then disciplinary action.
From India, Delhi
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There is no means by which an employer can withhold the PF amount of an employee. If it's a cash manipulation case, you can try by lodging a police complaint and filing the copy with the local PF commissioner. Then it is totally up to the discretion of the PF commissioner whether to honor it or not.
Legally, after six months of his termination, the employee can happily apply for the PF withdrawal on his individual capacity. If a listed bank manager certifies his signature where he has an account, he will automatically get his PF money directly to his account. So practically, you cannot hold anyone's PF money.
Try to find out other means to recover the fund, and it should be strictly and legally followed with the laid-down procedures, like a show-cause, then an inquiry by an independent authority, and then disciplinary action.
From India, Delhi
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Early PF withdrawal won’t be easy.pdf
Guide Lines for PF Withdrawal.doc