1. #1
    Unregistered

    Can we hold PF amount of the employee who is absconding without informing the company?

    One of the employees left the organization without informing. We had sent a warning letter that if he does not report within 48 hours his PF will be held by the account department. He never came back. After 4 years he has sent a letter to the company to release his PF amount. What should I do as an HR in this case? Please suggest.

  2. #2
    Labournet Law Consultancy Array
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    Re: Can we hold PF amount of the employee who is absconding without informing the company?

    If any employee left your employee without informing your company the only possible thing what you can do is to dismiss him. But you have no right to withhold his PF. AN employee can withdraw his PF from the PF department even with out the help of the employer. Has an HR so as to safe guard your interest you can refuse to help them to withdrawn the PF amount. If that employee files any compliant before the EPF official along with his regnation letter then you will be in trouble.

    For withdrawing the PF amount an employee has to submit Form 10 C and Form 19. This form has to be attested by the employer. IF the employer is not ready to sign the forms then it can be attested by the Branch manager where the PF remittance is made or EPF commissioner or by any Gazated officer or member of central board of trusty or any magistrate or sub post master.
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  3. #3
    abrocks Array
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    Re: Can we hold PF amount of the employee who is absconding without informing the company?

    Hi. I think the employee who left your organization without prior information should certainly be punished for the same. But holding his PF account for the same is no solution to this. You should have charged compensation from him. But of course you are not completely at fault here as that employee was not showing up so you couldnt do anything about it.

    Now holding someone's PF account is certainly not legal as you know. But of course even that employee has left your company illegally. So he certainly doesnt have an upper hand over you. What you can do is write a letter to that employee stating that he is required to pay compensation to your company for breaking the rules and leaving illegally without serving the notice period. Then only you will release his PF account.

    Now if he tries to file a complaint against you you can counter-attack and file a complaint against him too. So most probably he is going to settle the matter with you amicable without taking the help of law as he also knows that he is also at fault. So you fight against him and dont give up. Such employees should certainly be taught a lesson so that they dont repeat such mistakes in future.

    Good luck and Thanks

  4. #4
    bsr Array
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    Re: Can we hold PF amount of the employee who is absconding without informing the company?

    Hi friend,
    It is not fair to withhold PF. Even without your involvement he is able to withdraw his PF. Thing here is only possible way is don't show interest to help him. Because he left without informing you which causes loss to your organization.
    But if employee file a complaint you will be in risk. So don't do anything with that amount.

    Hope this helps you.

    Regards,
    BSR.

  5. #5
    Ashok Array
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    Re: Can we hold PF amount of the employee who is absconding without informing the company?

    Quote Originally Posted by Unregistered View Post
    One of the employees left the organization without informing. We had sent a warning letter that if he does not report within 48 hours his PF will be held by the account department. He never came back. After 4 years he has sent a letter to the company to release his PF amount. What should I do as an HR in this case? Please suggest.
    Dear Aspirant,

    It is not your positive thinking to withhold the PF of your Ex.employee,because the PF ampount which you want to withhold is the amount of his salary & of your contribution for which the employee had worked in your company.Also The PF account of the employee is controlled by the Regional Employees Provident Fund office situated in your region.The head is The Regional commisssioner,PF.The PF act is a central Act & the department comes under the central govt.

    The PF amount is a amount of the employee which can be used by the concerned employee & his family only.

    If you try to withhold the PF amount of the employee,the amount can be withdrown with the help of the above said office.The employee can directly submit his application to the the said office & the inspector of the said office will visit to your office & he may take action against you under the provision of law.

    So It is advisable not to be in problem for a single employee because somebody might be working in his place & your work is not pending due to his absence.

    Thanks.

    Ashok

  6. #6
    Devi.career Array
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    Re: Can we hold PF amount of the employee who is absconding without informing the company?

    Hello friend,
    yeah definitely you can hold the PF of that employee who is absconding with out informing.
    it means that he is not interested in continue his job with your organization and may be joined some where else leaving the job.
    so in this case neither he will claim nor you need to pay his PF.That PF will be the recovery amount which is spent on him during his stay in the company.
    and the employee cant complaint against the company for the same as he is absconding from the job.had he left the job with proper procedure he could have complaint against you for blocking his provident fund but in this case if he complains that will back fire him.
    Thank YOU.

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