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GOUTAM ROY (not applicable)     17 August 2012

Epf of officer can be forfeited?


please tell, whether epf (including employees contribution),gratuity,leave encashment,etc can be forfeited

in case of officer employee,who is dismissed from his service.


 7 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     17 August 2012

Sub section (6) of Section 4 empowers not to pay gratuity to an employee under certain circumstances, viz. all major misconducts of such employee. Section 4 (6) enunciates that 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. It also says that the gratuity payale to an employee may be wholly or partly forfeited- (1) 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 cimmmtteed by him in the course of his employment.

1 Like

Sudhir Kumar, Advocate (Advocate)     17 August 2012

Mr Rama chery has clarified on the gratuity.


EPF cannot be forfeited. EPF Act 1952 does not differentiate between /resignation/ retirement / dismissal/ VRS/ retrenchment / death.


Please specify your problem

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GOUTAM ROY (not applicable)     18 August 2012

dear sudhirji,

              One of my relatives worked in a p.s.u; he was dimissed.the order says "dismissal from services of the bank with immediate effect" you are not entitled to receive anything except the subsistence allowance which you have already been paid during the period of suspension. further ,you are not entitled to draw any increament during the period of suspension.

my question is to what extent this order is legal or illegal.this order clearly speaks nothing is receivable.

M.S.R.Murty ( Manager (Admn))     18 August 2012

Dear Sirs,

Nothing can be forfeited untill the Employer clarify the reason of dismissal.  You can approach Labour Commissioner Office for forfeiture of your terminal benifits.

GOUTAM ROY (not applicable)     18 August 2012

departmental inquery took place before passing the order.question is whether this type of order legal of illigal.

Sudhir Kumar, Advocate (Advocate)     18 August 2012

Dear Mr Gautam Roy,


The order as described by you appears to be perfectly legal.  The order indicates that the proceedings have resulted in dismissal which inter-alia means that suspension was justified.  This order only speaks that he is not entitled to draw increment during suspension period which he is otherwise not entitled even if the order did not say so.


This order (as described by you)does not speak denial of any terminal benefit admissible to dismissed employee [i.e. PF, Gp Insurance]


AS advised by Mr Murthy legal recourse can be taken if the order is not speaking order and if there are fatal infirmities in the inquiry. But as long as the dismissal is otherwise not set aside the order (as described by you) does not appear to be illegal in any manner.



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revribhav (Hindi)     15 December 2014

Rishvat lete Pakada gaya,rishvat de ... , the Indian sub continent a proverb says if one is caught taking bribe (unfortunately) paying bribe is an option to hush up.

Corporate hatred against the innocent...
Provident Fund continues to be forefeited of an honest human being (as a vendetta of exposing corruption /embezzlement of public money).

On the other hand A well known bribe taker (26019) actually seen with A. R.  Sekar,The New India Assurance Company Limited (a public sector insurance company of India) ex-officio chairman as on 20.7.2012. 
The legacy continues...

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