Hello Everyone, I have a question and want to understand do we can do this or not.
I have a loyal employee who has been with us for a very long time. He has some issues at his place, and now he is requesting money. But he doesn't want an advance from the company; he wants to withdraw his GRATUITY partially.
As i know Gratuity is can't be removed partially but he is requesting for the same and not ready to understand as he has completed more then 8yr at the company.
From India, Mumbai
I have a loyal employee who has been with us for a very long time. He has some issues at his place, and now he is requesting money. But he doesn't want an advance from the company; he wants to withdraw his GRATUITY partially.
As i know Gratuity is can't be removed partially but he is requesting for the same and not ready to understand as he has completed more then 8yr at the company.
From India, Mumbai
Hi, It is not possible to withdraw Gratuity partially while in service.
Company may consider releasing some loan amount to the employee if he is willing (or) employee can submit resignation and get relieved so as to claim gratuity and can join after a break if it is feasible for both employee and employer. In this case employee's service continuity will get affected. Other option is to advise employee to apply for PF loan.
From India, Madras
941Company may consider releasing some loan amount to the employee if he is willing (or) employee can submit resignation and get relieved so as to claim gratuity and can join after a break if it is feasible for both employee and employer. In this case employee's service continuity will get affected. Other option is to advise employee to apply for PF loan.
From India, Madras
Payment of gratuity, partly or fully never possible while an employee still in service. As you know, gratuity one among the few FnF settlement payments an employee is entitled to.
If you really wish to help a loyal employee,practical solution is, it may be possible to organise a 'personal loan' from your banker with whom the salary payments are channelized. if necessary your office can sign as surety for the PL.
Another possibility is - subject to eligibility-part leave encashment.
If under ESI scheme, In ESIC the encashment of earned leave is allowed to the extent of fifteen days every year alongwith the condition that at the time of availing encashment the individual should also avail E.L. to the extent of fifteen days.
From India, Bangalore
If you really wish to help a loyal employee,practical solution is, it may be possible to organise a 'personal loan' from your banker with whom the salary payments are channelized. if necessary your office can sign as surety for the PL.
Another possibility is - subject to eligibility-part leave encashment.
If under ESI scheme, In ESIC the encashment of earned leave is allowed to the extent of fifteen days every year alongwith the condition that at the time of availing encashment the individual should also avail E.L. to the extent of fifteen days.
From India, Bangalore
Can you please elaborate your statement:
"If under ESI scheme, In ESIC the encashment of earned leave is allowed to the extent of fifteen days every year alongwith the condition that at the time of availing encashment the individual should also avail E.L. to the extent of fifteen days"......?
Has a company's leave encashment anything to do with ESI? How can encashment and availing take place at a time?
From India, Kannur
"If under ESI scheme, In ESIC the encashment of earned leave is allowed to the extent of fifteen days every year alongwith the condition that at the time of availing encashment the individual should also avail E.L. to the extent of fifteen days"......?
Has a company's leave encashment anything to do with ESI? How can encashment and availing take place at a time?
From India, Kannur
There is no partial withdrawal or advance payment of gratuity. And an employer is not in a position to adjust any loan paid to an employee from the gratuity amount at the time of retirement. Gratuity can be adjusted or withheld or forfeited only in such circumstances as mentioned in section 4(6) of the Payment of Gratuity Act.
From India, Kannur
From India, Kannur
Dear Mr.Madhu,
I'm able to download this circular from this link. I'm also eager to see this circular. If anyone in possession of this pl.share:
[PDF] Clarifications Regarding Encashment of Leave. - ESIC
www.esic.gov.in › CIRCULARS › LECIR
In ESIC the encashment of earned leave is allowed to the extent of fifteen days every year alongwith the condition that at the time of availing encashment ...
https://www.esic.gov.in/CIRCULARS/LECIR.pdf
From India, Bangalore
I'm able to download this circular from this link. I'm also eager to see this circular. If anyone in possession of this pl.share:
[PDF] Clarifications Regarding Encashment of Leave. - ESIC
www.esic.gov.in › CIRCULARS › LECIR
In ESIC the encashment of earned leave is allowed to the extent of fifteen days every year alongwith the condition that at the time of availing encashment ...
https://www.esic.gov.in/CIRCULARS/LECIR.pdf
From India, Bangalore
The loyal employee can get the amount from the EPFO. The Gratuity is paid at the end but not prior to end of the service.
From India, Mumbai
From India, Mumbai
It is not possible to withdraw the Gratuity amount in middle of the service. If the company is considering, they may give it as loan to the employee up to 70% of the Gratuity amount and the loan amount will be recovered from the employee salary or in other case it depends upon the employer, if a employee is loyal and worth for the company, employer can consider 50% of his Gratuity. (as moral and depends upon situation).
R.Sateesh, MHRM., LLB.,
From India, Hyderabad
R.Sateesh, MHRM., LLB.,
From India, Hyderabad
Hi,
Accrued gratuity amount cannot be used as a scale to decide employer's loan amount to the employee. Employer subject to rules and regulations of the Establishment , Loan Policy if any may consider supporting by releasing some loan amount. But that has nothing to do Gratuity amount.
https://timesofindia.indiatimes.com/city/bengaluru/gratuity-cannot-be-adjusted-towards-loan-account-karnataka-hc/articleshow/95240154.cms
From India, Madras
Accrued gratuity amount cannot be used as a scale to decide employer's loan amount to the employee. Employer subject to rules and regulations of the Establishment , Loan Policy if any may consider supporting by releasing some loan amount. But that has nothing to do Gratuity amount.
https://timesofindia.indiatimes.com/city/bengaluru/gratuity-cannot-be-adjusted-towards-loan-account-karnataka-hc/articleshow/95240154.cms
From India, Madras
Dear Hr-Indiform
I think your problem is more of communication and relationship management rather than a legal problem.
Someone probably told this employee that you can get partial gratuity or loan against it and he has believed it. Possible the person meant (or even said) PF Withdrawal.
Your task now is to convince him that legally it is not allowed and therefore he has the option of taking a loan or withdrawing part of his PF. Beyond that, there is little to do. Of course, members have given various suggestions above, one of which is to allow him to resign and then take him back with a month's break.
From India, Mumbai
I think your problem is more of communication and relationship management rather than a legal problem.
Someone probably told this employee that you can get partial gratuity or loan against it and he has believed it. Possible the person meant (or even said) PF Withdrawal.
Your task now is to convince him that legally it is not allowed and therefore he has the option of taking a loan or withdrawing part of his PF. Beyond that, there is little to do. Of course, members have given various suggestions above, one of which is to allow him to resign and then take him back with a month's break.
From India, Mumbai
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