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Badhrinath (Management Trainee)     06 June 2013

Pf & gratuity of an employee who left service without any no

Hi! One of my uncle runs a movie theater and has come to me with a query. I will be happy if anyone could advise..

One of his employee who has worked for more than 10 years has suddenly left service without any notice from January 2013 as he found that the real estate market of the area was booming in the town(the employee is working as a real estate broker from then). Now he has approached the ex-employer claiming PF & Gratuity dues?

It seems my uncle has faced difficulty for more than 2 months to find a person for replacement, since theatre is a service industry oriented.

What are my uncle's firm's obligations towards his previous employee regarding PF & Gratuity?



Learning

 2 Replies

Kumar Doab (FIN)     06 June 2013

 

PF and Gratuity are social security tools and statutory benefits to be provided by employer to employee.

Refusal to attest PF forms is offence. PF can not be attached even by court decree.

Contravention of provisions of payment of Gratuity Act can invite both imprisonment and penalty.

 

You may advice your uncle to provide PF withdrawal forms, and FormI for gratuity to the employee and discharge his statutory liability.

sachin agarwal (lawyer)     08 June 2013

hello friend thanks for query,

 actually my friend the provident fund contribution,  insurance fund, and gratuity are for the purpose of social security of the family of the employee and employee. That it is very much made clear that every establishment which is enjoying the employment of the employee and be cover able under the provisions of the act, 1952 then he should register the employees before the appropriate authority and pay the contribution as per Law applicable upon the establishment. friend in respect of your cinemas theatre( establishment0 is covered under the provision and the employer who is your relative is liable to pay the contribution.  It the employer has registered employees and paid the contribution in respect of the employee then the employee has right to call the employer for get back in dues as a per provision.

That in your case you employee has left the employment without given any prior notice to the employer and in this case you can give the notice to the employee for joining the employment and demand other liability which is applicable upon your facts. thanks with regard.   sachin agarwal 9210625938 


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