Dear Senior, If the GST department imposes any penalty on the employer due to an employee's mistake, can the employer hold the employee's PF correction form and gratuity as per the law? There is a dispute between them.
From India, New Delhi
From India, New Delhi
Gratuity Withholding Conditions
The employer cannot withhold the gratuity payable unless a domestic inquiry has been conducted, and it has been proven in that inquiry that the company incurred a quantifiable loss due to the negligence of the employee. The forfeited gratuity should be equal to the loss incurred by the company. It is important to note that the loss must be quantified during the inquiry. Please refer to section 4(6) of the Payment of Gratuity Act 1972.
Employee Provident Fund (EPF) Control
The EPF is not under the control of the employer; therefore, the employer cannot retain the PF of the employee. The employee can withdraw the PF accumulations and receive any eligible pension without the employer's assistance.
I am not familiar with what a PF correction form is.
From India, Kannur
The employer cannot withhold the gratuity payable unless a domestic inquiry has been conducted, and it has been proven in that inquiry that the company incurred a quantifiable loss due to the negligence of the employee. The forfeited gratuity should be equal to the loss incurred by the company. It is important to note that the loss must be quantified during the inquiry. Please refer to section 4(6) of the Payment of Gratuity Act 1972.
Employee Provident Fund (EPF) Control
The EPF is not under the control of the employer; therefore, the employer cannot retain the PF of the employee. The employee can withdraw the PF accumulations and receive any eligible pension without the employer's assistance.
I am not familiar with what a PF correction form is.
From India, Kannur
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