The Supreme Court recently ruled in favor of an employee(appellant), directing the Punjab National Bank (PNB) to release the provident fund (PF) and gratuity due to him who was compulsorily retired. The court held that as per the Punjab National Bank (Officers’) Service Regulations, 1979(1979 Regulations), the bank could withhold the PF amount only when any loss is proved to be caused to it by an employee’s act. In this case, the bank not only failed to prove the alleged loss but also denied a fair hearing to him.It observed, “The Single Judge was right in observing that the Board of Directors has not afforded an opportunity to the appellant on the issue of causing loss or damage…
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PNB Regulations | Bank Can’t Withhold PF & Gratuity Without Proving Actual Loss Caused By Employee : Supreme Court
