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thamaraimanalan (exe)     29 January 2011

PF and Gratuity settlement

Hello Sirs / Madam

I have worked in a pvt company for 10 years, but at the end of my service i was not able to work for longhurs and and i was pressurised for work long hours and also because of usage of abusive language when i said i am not well when it was also true, so it caused so much stress and stress added to sickness.  I told them that i am going on leave and i didnot report for duty and took rest for morethan 50 days and finally i was not ready to go back to same office and face same situation, because going back there will again make me sick.  So i sent resignation after 2 months since when i went on leave.  The point is will there be any issue my company create to settle my gratuity, i was having provident fund but i came to know PF cant be stopped.  But what abt gratuity, will it be an issue for not serving one month notice period? 




 12 Replies

GUDAKESH KUMAR (LAW OFFICER)     29 January 2011

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.

Kirti Kar Tripathi (lawyer)     30 January 2011


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.


1 Like

GUDAKESH KUMAR (LAW OFFICER)     30 January 2011

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.

Attached File : 14 14 radhey shyam gupta vs pnb sc judgement.doc downloaded: 493 times
2 Like

V. VASUDEVAN (LEGAL COUNSEL)     31 January 2011

Thanks Kumar, for the Case Law.


Kumar Doab (FIN)     16 February 2011

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.

Adinath@Avinash Patil (advocate)     11 March 2011


Suanthang (Manager)     08 January 2012

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 ?

1 Like

Kumar Doab (FIN)     08 January 2012

-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.

calvin (manager)     16 January 2012

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.

Suanthang (Manager)     18 January 2012

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' .

Kumar Doab (FIN)     19 January 2012


You may find the attchments useful:

'Preponderance of probabilities

PF Payment tax Liablity

Kumar Doab (FIN)     19 January 2012


You may find the attchments useful:

'Preponderance of probabilities

PF Payment tax Liablity

Attached File : 982932783 pf gratuity.zip downloaded: 104 times

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