PF and Gratuity settlement

Both Provident Fund and Gratuity being terminal benefit cannot be stopped by the employer. however since you have not not served one months notice, salary in lieu of one months notice is advisable to be paid by yourself.

The PF and Gratuity of employee are immune from any attachment or deduction. Employer  has no right to deduct or forfeit the same on any account except as laid down in PGA i.e. forfeiture of amount of gratuity to the extent of financial loss caused by an employee to the employer but that too can be forfeited only after serving show cause not and after providing opportunity to have his say. However, the employer may adjust amount from other dues of an employee such as bonus, leave encashment and/or due salary etc.

Shri Tripathi has rightly stated about PF and Gratuity. I am further attaching judgment in the matter of Radhey Shyam Gupta Vs PNB which clarifies the nature of terminal benefits.

Thanks Kumar, for the Case Law.

Vasudevan

It appears you informed leave only verbally and did not submit leave aplication and do not have leave approval.

During 50 days it appears company did not serve any show cause notice on you.

You have submitted your resignation and probabaly have not received acceptance.

Subsiquent to your resignation you may ask for acceptance,work experience certificate,relieving letter,form 16, PF accumulation reports,NDC,NOC,F&F, PF witdrawl forms.

You can ask the company to adjust notice pay from earned leave in F&F.

If the PF withdrawl froms are not supplied to you, you may obtain from Regional office of PF commissioner and get them countersigned by any of the authorities e.g Bank Manger and submit it to your  PF comissioner.

You can lodge your greivance on line also at www.epfindia.gov.in 

The episodes mentioned by you were probably the part of exit strategy.

Company may not be interested to prolong and cause bad blood.

Using your resources and by being smart you can make the things happen as suitable to you.

THANX  GUDAKESH KUMAR FOR JUDGMENT

Whether an employee who has completed more than 20 years confirmed service but was removed from service is eligible for Gratuity ? Whether income tax is payable on Provident Fund ?

-What is the reason for removal? Has the employee been charged for any loss to employer and has the charge been rpoved?

-The difference between the EPF account maintained by the EPFO and the one maintained by the companies themselves. Such EPF accounts maintained by the companies themselves are called Exempted Provident Funds. These Exempted Provident Funds are governed by Part A of Schedule IV of the Income Tax Act. These provisions are not applicable to the EPF accounts maintained by the EPFO.
 

These rules are not applicable to the EPF accounts maintained by the EPFO. There is no tax liability for that amount at any stage.

Valuable advice of learned experts/members is sought.
 

I work with a private limited listed company since february 2004. I have been in continues service with this firm. I will complete 8 years and 4 months In june 2012 and than I plan to take my maternity leave for 8 months, out of which 3 months will be paid leave as per maternity benefit act(45days prior and 45 days after delivery). I will take addiitonal unpaid leave for 5 months and will join office only in February 2013.I have the following queries
1) If I resign in March 2013 after joinging in february 2013 can i claim gratuity?
2) If yes, then which period will be considered for my gratuity calculation i.e whether june 2012 will be considered as last working day, or maternity leave of 3 months will be considered or february 2013 will be considered as last working day?
3) I have 3months notice period which i dont intend to serve, in that case can the company deduct anything from my gratuity amount since i will not be serving 3months?

Kindly help and thanks in advance for going through my query.

Reason for removal is a complaint was made against the employee. Dept Enquiry did not find any evidence of the allegations against the employee. Still, the DA has iisued order  for reoval from service stating that ' preponderance of probabilities' .

@Suanthang

You may find the attchments useful:

'Preponderance of probabilities

PF Payment tax Liablity