I left an organization 9 months ago, and now the organization is claiming dues of 40K. I have requested them to settle the dues from my PF and release the rest to me. It's a private PF trust, so I believe the same is possible; however, the firm is saying that they are not allowed to do it.
Please advise.
Thank you.
Regards,
From India, Mumbai
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Please advise.
Thank you.
Regards,
From India, Mumbai
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Tell them that you are willing to send an authorization letter to settle dues with your organization to the trustees of your PF trust and see. I know of a specific case where it has worked, so I presume it can be done. Hope it helps.
Regards,
From India, Delhi
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27Regards,
From India, Delhi
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Definitely, you can request your employer for settlement by authorizing them as suggested by Mr. Robin above. However, one thing that is really important to understand here is the "dues of Rs 40K" that they are asking you to pay, even though you left your organization 9 months ago.
I hope you followed the proper resignation and notice procedures when you left your organization. Please share the required details with the community so that you can receive appropriate responses.
From India, Gurgaon
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I hope you followed the proper resignation and notice procedures when you left your organization. Please share the required details with the community so that you can receive appropriate responses.
From India, Gurgaon
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Thank you for your comments. The dues are regarding the notice period shortfall. When I left the organization, I was told the notice period had been waived off. However, the finance team is now saying they received intimation from HR about the notice period recovery. All the processes went smoothly during the exit, but this issue has now arisen. I did try to clarify, but HR insists that I have to pay up. It is partially my mistake as I didn't have written proof and relied on the partner's words.
I am now prepared to settle the dues from PF, but the firm is stating that it is not permissible through PF due to laws. Are there any such restrictions in place, especially for private trusts?
Thanks,
Ankit
From India, Mumbai
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I am now prepared to settle the dues from PF, but the firm is stating that it is not permissible through PF due to laws. Are there any such restrictions in place, especially for private trusts?
Thanks,
Ankit
From India, Mumbai
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Formal Resignation Acceptance
Did you receive a formal resignation acceptance letter? Verbal confirmations do not matter. If this is what the employment rules state, it will be so. Furthermore, they will not agree to your request.
If PF is withdrawn before 58 years of age, the receipt will be taken into account for tax computation. In such cases, you may be asked to pay upfront before PF settlement.
Regards
From India, New Delhi
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Did you receive a formal resignation acceptance letter? Verbal confirmations do not matter. If this is what the employment rules state, it will be so. Furthermore, they will not agree to your request.
If PF is withdrawn before 58 years of age, the receipt will be taken into account for tax computation. In such cases, you may be asked to pay upfront before PF settlement.
Regards
From India, New Delhi
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I have a resignation acceptance letter and have completed all the exit formalities as well. This issue arose when I asked for PF withdrawal. Initially, the payroll team agreed to the same and directed the PF team to deduct the amount from the PF. However, the PF team then refused. I believe it's illegal for the company to withhold the PF for any reason. Am I right?
Since if it's adjusted with the PF deduction, there will be no cash outgo, hence I thought of not pursuing the pending recovery matter. But if it's not possible, then I will challenge the same to a logical conclusion.
Thanks,
Ankit
From India, Mumbai
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Since if it's adjusted with the PF deduction, there will be no cash outgo, hence I thought of not pursuing the pending recovery matter. But if it's not possible, then I will challenge the same to a logical conclusion.
Thanks,
Ankit
From India, Mumbai
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Guj HC on recovery of PF dues within appeal period.pdf