shailesh pandey (dy.manager (p&a)) 08 September 2011
while retirement when we are going to pay an employee his gratuity, should we deduct the loan taken by the concerned employee from his gratuity ?
if some one is retired in july & still he is not coming to receive his gratuity as leave & bonus is also payable to him & he wants to take alongwith gratuity. is there late & any legal complication for us being an employer
kindly help
regards
shailesh
Isaac Gabriel (Advocate) 08 September 2011
The employer cannot make recoveries from the gratuity payable to the employee.If recovered,it has to be refunded in case the employee filed a case with the competent authority. However, recoveries could be made from out of the other terminal benfits like surrender leave salary,salary arrears etc.,
BDRchandan (HEAD-HR) 09 September 2011
I think Mr. Gabriel advise is perfect
V. VASUDEVAN (LEGAL COUNSEL) 12 September 2011
Mr. Gabriel is correct. ALso for payment of gratuity, a notice on the gratuity rules has to be received from the employee. Although the grauity as such cannot be attached, you can mutually agree with the employee for settlement of loans due out of the receipt of the grauity, once received and collect an advance cheque with proper documentation.
vasudevan
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