Hi All,
An employee of our establishment who has rendered 10 Yrs of service had resigned. During His full and Final setellement there is an amout of Rs. 40000/- due which he needs to pay to the company.
Is there any possibility of recovering the above said amount from his Provident Fund contributions as he cannot pay.
If yes! can u pls help me the procedure for the Same.:-P
From India, Hyderabad
An employee of our establishment who has rendered 10 Yrs of service had resigned. During His full and Final setellement there is an amout of Rs. 40000/- due which he needs to pay to the company.
Is there any possibility of recovering the above said amount from his Provident Fund contributions as he cannot pay.
If yes! can u pls help me the procedure for the Same.:-P
From India, Hyderabad
363
Dear Satyanaryana
Have u worked out leave encashment and gratuity. If it is there you can retain that amount as loan recovery.
The option is that U can ask the employee to give the cheque of the balance amount of that bank of which he is giving the account No. for withdrawl of Pf .
Rgds
Prabhakar Rao.M
From India, Delhi
Have u worked out leave encashment and gratuity. If it is there you can retain that amount as loan recovery.
The option is that U can ask the employee to give the cheque of the balance amount of that bank of which he is giving the account No. for withdrawl of Pf .
Rgds
Prabhakar Rao.M
From India, Delhi
no u can not touch his PF.If possible u can recover it by his gratuity and leave encashment.
In some company there are policies like hold salary in particular month in which employee is leaving organisation,sometimes salary is given incentives are on hold.
You can do one thing prepare the final receipt and show his liability to company and tell him we can process your gratuity , PF withdrawal and relieving letter only after getting Rs.40000/- cheque.
From next time if person has a loan or any pending issues then put his salary on hold and give the certain time period for full and final cheque so that in case any employee has recovery you have option to recover it from salary, bonus, leave encashment etc.
But recovery from PF is not a good option.
From India, Mumbai
In some company there are policies like hold salary in particular month in which employee is leaving organisation,sometimes salary is given incentives are on hold.
You can do one thing prepare the final receipt and show his liability to company and tell him we can process your gratuity , PF withdrawal and relieving letter only after getting Rs.40000/- cheque.
From next time if person has a loan or any pending issues then put his salary on hold and give the certain time period for full and final cheque so that in case any employee has recovery you have option to recover it from salary, bonus, leave encashment etc.
But recovery from PF is not a good option.
From India, Mumbai
Dear
What is the amount due so high , on what a/c it is due to company. Let me tell you there is no provision in PF Act
to recover any amount from employee. I agree with Mallik ji
Regards,
B.Dakshina mruty
From India, Hyderabad
What is the amount due so high , on what a/c it is due to company. Let me tell you there is no provision in PF Act
to recover any amount from employee. I agree with Mallik ji
Regards,
B.Dakshina mruty
From India, Hyderabad
Dear Satyanarayana,
I am fully agree with Mr. Malik and Ms Sujata, you can't touch the amount of PF & Gratuity of any employee as per law. You have only option to recover the amount from his Leave Encashment, Notice Pay etc., because you better know your company policy as per the time of F&F.
Regards,
Shailendra Gupta
From India, Delhi
I am fully agree with Mr. Malik and Ms Sujata, you can't touch the amount of PF & Gratuity of any employee as per law. You have only option to recover the amount from his Leave Encashment, Notice Pay etc., because you better know your company policy as per the time of F&F.
Regards,
Shailendra Gupta
From India, Delhi
I am afraid you cannot recover any such outstanding amounts from PF or from the employee's Gratuity.
Yes, it is a common practice to put the current month's salary "ON HOLD" as soon as an employee resigns.
While calculating his dues in Full & Final the outstanding amount may be recovered from his payable dues.
There is a practical solution to handle such cases. You may take an undertaking from him in writing, whereby he authorizes the management to racover the outstanding amounts from his Gratuity. Once the written authorization has been obtained, the money can be recovered from his payable Gratuity.
The Undertaking may be executed on a Rs.100/- Non Judicial Stamp paper and the same may be got wotnessed and Notorized as a measure of abundance caiution.
Best Wishes,
Vasant Nair
From India, Mumbai
Yes, it is a common practice to put the current month's salary "ON HOLD" as soon as an employee resigns.
While calculating his dues in Full & Final the outstanding amount may be recovered from his payable dues.
There is a practical solution to handle such cases. You may take an undertaking from him in writing, whereby he authorizes the management to racover the outstanding amounts from his Gratuity. Once the written authorization has been obtained, the money can be recovered from his payable Gratuity.
The Undertaking may be executed on a Rs.100/- Non Judicial Stamp paper and the same may be got wotnessed and Notorized as a measure of abundance caiution.
Best Wishes,
Vasant Nair
From India, Mumbai
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