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Rahul Borkar (Service)     24 December 2010

Relieving PF Held by company

Dear Legal Experts,


  1. I have joined ABC based in Mumbai in June 2009. The Terms and condition mentions of one month notice period in case if I plan to resign.
  2. In September 2010, Company revised the Notice Period Policy to 3 months from existing one month. They have formally communicated this in advance via email.
  3. In October 2010, i had planned to resign the company. So i sent a formal One month Notice and requested them to releive me in a months time. 
  4. I had a lot of discussion with my Supervisor and my manager and requested them to releive me in a months time. since i had further plans ahead.
  5. My project approved my request.
  6. However, paralley my discussions were going on with My HR regarding the balance Notice Pay buyouts. I was willing to compensate the deficit days in lieu of basic pay. But the HR demanded my Gross Pay. This was something huge amount what they have been demanding since my gross earnings includes my bonuses and other earnings provided by employer, like PF, HRA, Hot Skill Bonus, Special Allowance, etc. 
  7. I had requested a company policy which mentions the recovery based on gross pay. but the HR failed to provide me any such document. moreover they said that the policy is Confidential and cannot be disclosed to the employee. I didnt understand why it is then levied on any employee if its so confidential.
  8. As mentioned in my Resignation Letter, i had served the mentioned dates and then left the company in a months time.
My one months salary, my PF, my releiving documents are all held by the company. I need your help understanding what are my way outs to get these things back.

Thanks in Advance,


 8 Replies

V. VASUDEVAN (LEGAL COUNSEL)     24 December 2010

At the outset a Company cannot change terms of notice ex-parte, without due consent of the employee concerned. Your employment is governed by the original terms unless you have agreed to the changes expressly. Also since your resignation is in October the terms of 3 months notice would not apply. If the Company Management is not considering your request, please lodge a complaint with the local labour department.


1 Like

Kamal Prasoon Sinha (Service)     24 December 2010

Dear Rahul,

As the change in notice period is unilaterally decided by the employer and not done mutually, you are not bound to follow the same. The earlier conditions of the employment contract is valid.

As of now I do not have the details of the judgments but few high courts and the supreme court have termed 90 days notice period as unfair labor practice.

Kamal Prasoon SInha

1 Like

Rahul Borkar (Service)     25 December 2010

Thanks Vasudevan & Kamal Sinha for your inputs. 

I have one concern, if I take any legal action against the company then will this hit my future career prospects?

Since no other company may like a candidate who has gone against the company despite the actual reasons behind it. 

Let me know, please.

Also, I am not in the place of Job Location, can I post my complaint to the local labour dept? will this be considered?

Many Thanks

Rahul Borkar


Kamal Prasoon Sinha (Service)     25 December 2010

Dear Rahul,

I can understan your concern and even i would not suggest you to go the court at this stage. As of now you need discuss with the concern HR  all points including the legality of unilateral decision of the company to revise the notice period. You should  tell the HR that any change in the employment contract has to be done mutually and the courts  have termed 90 days notice period as unfair labor practice.

You can give such points in writing to the HR also. and wait for their reply


Kamal Prasoon Sinha

1 Like

Raymoefter (Deputy Manager)     26 December 2010

Dear Sir/Madam,

I have was working for a Hyderabad based Financial Services Company for the last 7 and half years. I resigned from the job in july 2010 giving 1 months notice and my last working day ws 31st Aug 2010. In the meanwhile I completed the formalities for my PF withdrawal and sent it to the HR dept and also mailed them to settle my gratuity, my pending salary and other dues . I got the Relieving letter in the month of sept 2010.

But it has been four months and I have not yet received my pf and gratuity amt and nor my other dues are settled inspite of sending reminders.

I would be very much obliged if you'll can guide me how to go abt this case and which authority to approach.


Thanks and Regards,

Rayes Efthie

Rahul Borkar (Service)     28 December 2010

Hi Kamal,

Thanks again for providing information. My HR is stuck on the terms what i have been discussing. i have already passed the phase of good discussion. I have also posted my complaint in writing, but so far have not received any update on the same.

I had discussion with few lawyers as well but they its a time consuming and long process to carry the case in court. But my concern is the unfair/unethical practises which company is setting. Maybe they want to set an example so that no other employee thinks of resigning from company.

Your comments are most appreciated.



Pratheep Kumar (Asst. Manager - HR)     28 December 2010


Mr. Rahul


You may fill up the EPF Form 19 & 10 C and submit the same directly to the EPF with the signature of Gazetted Officer for claiming your EPF account.



Pratheep Kumar. R

Rahul Borkar (Service)     04 January 2011


My HR has just reverted back stating that the recovery on gross pay is based on the company's guildelines as to when an employee leaves the company and if there are any balance NP days. may i know what is the legal view on the statement made by HR?

personally i feel if those are guideline then these should be printed on my terms of employement or whatever place where this should be accessible and known to employee.

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