Question 1:When an employee resigns he is entitiled to receive a relieving certifocate as well as his full and final settlement letter. Usuually the sttlement takes some time to process. However, the same does not hold true for a relieving certificate. Most companies as a practice, give the relieving certificate alongwith the full and final settlement. I wish to know if the practice of withholding the relieving certificate until the full and final setllement is done, is subject to Companies internal policies or is there a law taht regulates this requirement and specifcally states if a company is allowed / not allowed to withhold the relieving letetr till such time that the settlement takes place.
Question 2: It is generally understood that the company is not allowed to touch an employees provident fund in lieu of settlement of loans provided to him by the company. Can the employee, at the time of his rendering his resignation, authorise the company to utilise hi PF balances to settle the outstanding loan amount. Is it possible for an employee to do this? If yes then what is the procedure to be followed?
From United States, New York
Question 2: It is generally understood that the company is not allowed to touch an employees provident fund in lieu of settlement of loans provided to him by the company. Can the employee, at the time of his rendering his resignation, authorise the company to utilise hi PF balances to settle the outstanding loan amount. Is it possible for an employee to do this? If yes then what is the procedure to be followed?
From United States, New York
Hi,
The resignation requires to be accepted first and then a proper relieving letter has be served for getting clearance from all concerned. The full and final settlement is the last step, which must be effected within 48 hours.
As far as the claim under PF Act is concerned, that can neither be forefeited /attached nor can be authorised by the member, to be claimed by employer
s s s
From India, New Delhi
The resignation requires to be accepted first and then a proper relieving letter has be served for getting clearance from all concerned. The full and final settlement is the last step, which must be effected within 48 hours.
As far as the claim under PF Act is concerned, that can neither be forefeited /attached nor can be authorised by the member, to be claimed by employer
s s s
From India, New Delhi
I am still unclear as to whether it is legally permissible for a company to hold the relieving letter till the full and final settlement is processed.
Is there a law around it or is it a company s internal policy which determines its exit procedures?
From United States, New York
Is there a law around it or is it a company s internal policy which determines its exit procedures?
From United States, New York
the company can hold relieving letter bcoz after getting relieving letter the employee can say no for signing full and final settlement letter.we give relieving letter only after signing of full and final settlement. :D
From India, Delhi
2From India, Delhi
Hey,
There is no fixed regulation that requires an organization to hold an employees relieving letter till the full n final settlement is done. Though some, in fact most of the companies issue the letter once full n final settlement is done, at times just to be on the safer side and some times just as a part of the process.
In case of urgent requirements you can request the organization to issue the same based on mutual understanding.
The second question regarding the PF, companies cannot forfeit your PF account as the money gone towards the PF goes to the PF department which is a public entity and is nt related to the company. At most the PF amount can go to the beneficiary you have added to it at the time of filling the PF form. If not redeemed by the concerned parties, all this amount goes to the government :)
Hope this helps :)
From India, Delhi
There is no fixed regulation that requires an organization to hold an employees relieving letter till the full n final settlement is done. Though some, in fact most of the companies issue the letter once full n final settlement is done, at times just to be on the safer side and some times just as a part of the process.
In case of urgent requirements you can request the organization to issue the same based on mutual understanding.
The second question regarding the PF, companies cannot forfeit your PF account as the money gone towards the PF goes to the PF department which is a public entity and is nt related to the company. At most the PF amount can go to the beneficiary you have added to it at the time of filling the PF form. If not redeemed by the concerned parties, all this amount goes to the government :)
Hope this helps :)
From India, Delhi
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Full n final settlement.doc