Dear All,
Being an employer, can we stop the PF, ESI etc disbursal of the employee if he is fired from the company due to serious misconduct or voilation of terms of appointment.
If yes, please suggest the way to do it. .
From India, Bangalore
Being an employer, can we stop the PF, ESI etc disbursal of the employee if he is fired from the company due to serious misconduct or voilation of terms of appointment.
If yes, please suggest the way to do it. .
From India, Bangalore
Dear,
First i would like to tell you that as you said Is it explained in your standing order about serious misconduct which he had done? Have you done the domestic enquiry on the base of principle of natural justice.
If you had followed all legal procedure and he awarded with punishment, the you can terminate him. But on other hand you cannot stop his PF amount & ESI will stop automatically once he terminated from services.
From United Arab Emirates, Dubai
42First i would like to tell you that as you said Is it explained in your standing order about serious misconduct which he had done? Have you done the domestic enquiry on the base of principle of natural justice.
If you had followed all legal procedure and he awarded with punishment, the you can terminate him. But on other hand you cannot stop his PF amount & ESI will stop automatically once he terminated from services.
From United Arab Emirates, Dubai
PF and gratuity are protected funds. The employer has no right to it and even courts can not attach it. Gratuity payment can be denied or withheld in case of serious misconduct involving fraud. This too is only if the order of the court (or I think at least the domestic enquiry) specifies this as a part of the punishment.
PF you just can not touch. The employee will get it irrespective of what you do.
ESIC benefits stop at the end of his employment. However any ongoing treatment will continue till the same is completed. This too, you can not interfere with.
From India, Mumbai
PF you just can not touch. The employee will get it irrespective of what you do.
ESIC benefits stop at the end of his employment. However any ongoing treatment will continue till the same is completed. This too, you can not interfere with.
From India, Mumbai
Dear Sunny Dudhani,
PF and ESI are social securities. There are specified deductions from the employee's salary of the month. There are specified contributions from the employer side. Therefore, it would be wrong to use the word "disbursal". The meaning of the word "disburse" is "Expend, as from a fund". You are not spending anything from the fund.
Now coming to coming to either contributions or deductions. These are applicable as long as employee is on the rolls of the company. If the employee is not on the roll of the company, owing his termination or resignation, then where is the question of deduction arises?
You can deduct the PF/ESI contributions till employee's last working day. Thereafter, your liability ceases.
Thanks,
Dinesh Divekar
From India, Bangalore
PF and ESI are social securities. There are specified deductions from the employee's salary of the month. There are specified contributions from the employer side. Therefore, it would be wrong to use the word "disbursal". The meaning of the word "disburse" is "Expend, as from a fund". You are not spending anything from the fund.
Now coming to coming to either contributions or deductions. These are applicable as long as employee is on the rolls of the company. If the employee is not on the roll of the company, owing his termination or resignation, then where is the question of deduction arises?
You can deduct the PF/ESI contributions till employee's last working day. Thereafter, your liability ceases.
Thanks,
Dinesh Divekar
From India, Bangalore
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