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?
From India, Ahmedabad
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From India, Ahmedabad
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Employer Contribution to PF and Legal Implications
This is not provided in the Act; indeed, 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.
From India, Mumbai
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1593This is not provided in the Act; indeed, 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.
From India, Mumbai
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Provident Fund Act.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf