Employee done fraud recovery measures required

Your post title suggests fraud committed by an employee and you want to recover the defrauded amounts against the employees' provident fund; how can you hold those employees liable against whom there is no proof of any fraud? In any event, provident fund is protected against any attachment in satisfaction of a decree or a debt in terms of Section 10 of the Employees Provident Funds Act and Sections 60(k) and 60(ka) of the Civil Procedure Code. Initiate criminal complaint reporting the fraud and subsequently,a departmental enquiry against the person(s) culpable. Gratuity may be forfeited under Section (4)(6)(a) of the Payment of Gratuty Act to the extent of any loss or damage caused to the employer by an act or wilful omission by an employee; provided that the employer has terminated the services of the employee after establishing and proving such act/omission and the damage caused to the employee thereby, after giving a due hearing to the employee.

first of all forget about touching EPF of the employee. It is criminal offence for company officials to withhold PF withdrawal application. Thuis fund cannot be attached even if you obtain a court order for recovery.

you have not at all described :- what fraud was done? how it was done? how could you zero down to one employee?

If you have irrefutable evidence that misappropriation of fund was done by a particular employee by way of issuing charge sheet and conduting domestic enquiry subsequently, and if such employee is terminated on the said charges you may withhold his gratuity. Holding/ restricting payment from EPF seems very difficult. 

 

Narrate the full incident for better advice.

Originally posted by : Ritesh Maity
	If you have irrefutable evidence that misappropriation of fund was done by a particular employee by way of issuing charge sheet and conduting domestic enquiry subsequently, and if such employee is terminated on the said charges you may withhold his gratuity. Holding/ restricting payment from EPF seems very difficult.    Narrate the full incident for better advice.

I just partially disagree

 

Holding/ restricting payment from EPF is not difficult  rather it is impossible and counterporductive. This step can land your HR person (authorised signatory) in crimnal case.

Forfeiture of Gratuity: Refer Payment of Gartuity Act, 1972; 4(6)

Post opportunity of Natural hearing, proven fraud, and speaking order is to be passed.

Do not forget to go thru: Section 13:

13.Protection of gratuity.-

No gratuity payable under this Act shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court…………………….

PF; Go thru EPF Act

10. Protection against attachment.