Gratuity & PF in case of no notice period served

No they can not hold your PF and GRATUITY, CZ , it is a welfare measure provided under central Acts ie.PF ACT AND GRATITY ACT.Even if they hold, its an offence under those acts and you can move the labor court , to get those benefits

srishaila,advocate,bangalore,sdharani120@gmail.com,09741425514

You may avoid abrupt termination and tender notice of resignation addressed to good offices of your appointing authority, MD, with a copy to Head-HR, with reasonable notice to employer say 15 days or as suitable to you, in writing under acknowledgment with a copy to you. Mention effective date of resignation/last day in office and affirm to adjust notice pay towards shortfall in notice period, as per clause number…….in appointment letter dated…….., in FNF statement.

You may obtain copy of standing orders of the company, HR policy doc, employee rule book etc and if these are not made available/circulated, mention that standing orders of the company are not displayed in the office, HR page of employee portal and have not been supplied to you by HR, and should be supplied to you immediately. You may mention that company may ensure smooth exit formalities, inform you in writing to whom you should handover the charge, company property, and payment of your dues by bank DD and acceptance of resignation, work experience/service certificate, relieving letter, form 16, attested copies of PF withdrawal/transfer forms (as suitable to you), NOC/NDC, FNF statement etc be handed over to you by your last day in office.

You may mention that as you have notified last day in office routine work may be assigned which can be completed within and up to last day in office. Complete all tasks and assignments and do not leave any room for company to charge you on any count including loss due to abrupt termination.

Since you are tendering notice your date of retirement is notified to employer and ideally employer should pay gratuity on its own vide FNF statement/settlement however you may submit Form I under acknowledgment to appointing authority and a copy to Controlling Authority under acknowledgment, which might be ALC in your case.

You have worked for 7 long years and it is time to carry forward rapport, goodwill. Remain amiable.

--PF is immune from any attachment.

Can the amount standing to the credit of any member in the Fund be assigned, charged or attached?: The amount standing to the credit of a member in the Fund cannot be assigned, charged or attached under any decree or order of any Court. Similarly, the amount standing to the credit of a member in the Fund at the time of his death is free from any debt or other liability incurred by the member before his death and cannot be attached under any decree or order of any Court. {Section 10}

HR point of View is: "Employer can refuse to sign the claim form i.e. Form 19 & 10C," and in such a case employer be prepared to face explanation, and consequences. 

--Payment of Gratuity Act:

Section 13: Protection of Gratuity

-No gratuity payable under this Act 22[and no gratuity payable to an employee employed in any
establishment, factory, mine, oilfield, plantation, port, Railway Company or shop exempted under section 5] shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

-4(6) Notwithstanding anything contained in sub-section (1),
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or
negligence causing any damage or loss to, or destruction of, property belonging to the employer,
shall be forfeited to the extent of the damage or loss so caused;
(b) the gratuity payable to an employee 16[may be wholly or partially forfeited]–
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or
any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Before forfeiture of Gratuity, employer must supply show cause notice to employee and grant opportunity to explain. Forfeiture can be up to the extent of loss caused/proved.

Thank you sir

Regards

Only the salary for the notice  period can be deducted .

Thanks Sir,

Can they deduct the salary from the gratuity too.

REgards

If next employer is buying out the notice period you may avoid tendering notice pay in cash/by cheque-DD to current employer or you shall be subjected to double taxation. You may ask the current employer to adjust notice pay in FNF statement and supply the correct FNF statement to you, and affirm if any amount is payable at your end as per correct FNF statement it shall be paid by you. You may affirm this in your notice of resignation itself or in subsequent reminder(s).Current employer shall encash paid leave/ bonus/incentive/performance pay etc (if any) and adjust notice pay @ basic + DA or as agreeable at your end, in FNF statement and shall issue form16 as per FNF amount.

Employer should not touch Gratuity, until or unless you commit an act as explained in Payment of Gratuity Act:-4(6) mentioned above, entitling employer for forfeiture of gratuity.

You have worked for 7 long years. Remain amiable. Apply your rapport, goodwill, highlight your contributions, achievements, revenue generated and request the good offices to waive off the notice pay.

Sir, This is Hari from Hyderabad. I joined a firm on 1st Aug'2008 & submitted PF transfer papers along with Joining Kit. Unfortunately HR has not processed the transfer. Again I was asked to submit in 2009 & i did the same. 

But the HR man has not mentioned the correct PF No . He filled DL/649/900 instead of DL/NHP/649/900 . As a result money was transfered to other account. In the mena while I was aksed to quit due to project closure. I told them very specifically that my PF issue is open since 3 1/2 years , I can't resign un till unless it is settled. 

But the HR managers concienced me that all PF issues will be closed with in a week . I believed them & submitted my resignation , even after 3 months issue is not closed. When I mentioned the same ( through mail - based on your assurance I submitted resignation) they are not condemning ( 5 mails exchanged) & telling it will heppen.

How long I have to wait , 4 years passed, presently I have no job also. Only hurdle to with draw present PF is , Old PF pending, once I with draw , my account will be closed.

Previous PF amount is Rs.1,05,000/-  Is there any chace of putting a suit on the employer ? I have all the correspondance, mail proofs. Kindly suggest me a solution.

Regards

Hari 

hkaphari@gmail.com

Hi, I am santosh kulkarni worked in appnomic 5 years and 3 months..resigned appnomic and without giving notice period to appnomic joined another company....prevoius company terminated me and said i will not eligible for gratuity amount since i have not served notice period......plz suggest me whether can i able to eligible to get gratuity amount or not?

With Regards,

Santosh Kulkarni

dear Hari,

In case employer is not processing your F/13 you can complaint ot the RPFC where you are conttributing now.

@ Santosh,

Mr. Cheema has already replied to similar point raised by you in this thread.

It is felt that your inquiry and reply of company is verbal.

Without any delay you may submit FormI for payment of gratuity to o/o your appointing authority/MD under proper acknowledgment.

Yu may attach a covering letter addressed to the good office of your appointing authority, MD, Company Secretary and mention that you had submitted resignation from the post of ……….and as per clause number……in your appointment letter dated…….the notice pay can be deducted from your FNF statement, and FormI for payment of gratuity is enclosed herewith along with a postage prepaid {as purchased from PO} self addressed envelope with postage stamps of Rs……affixed on it for sending the receipt  of FormI,  reply to your communications by redg post to you.

If you want to contest your termination you may fine tune your representation accordingly.

You may also submit a copy of FormI with copy of your representation to controlling authority of gratuity at your location, which may be ALC.

FormI is enclosed however you may obtain hard copy from o/o controlling authority of gratuity.

Attached FormI