Dear Mr. Madhu, Greetings!
I am working with a pvt company which is a part of a big Indian business group. I have just completed 5 yrs with this organisation. I am pretty satisfied working here.
My question is whether I can avail my gratuity money in the form of loan from my company without leaving it? or there is any other way for the same.
Would be highly obliged if u help me out.
thanks & regards,
From India, Bhopal
I am working with a pvt company which is a part of a big Indian business group. I have just completed 5 yrs with this organisation. I am pretty satisfied working here.
My question is whether I can avail my gratuity money in the form of loan from my company without leaving it? or there is any other way for the same.
Would be highly obliged if u help me out.
thanks & regards,
From India, Bhopal
Dear Rahul,
If your company is willing to give you loan considering your long service with it, you may get. But the loan will not be on any lien on gratuity payable because, the amount of gratuity payable to an employee can not be attached. In other words, if you fail to repay the loan, the company can not adjust the gratuity against the loan pending from you. As per Gratuity Act, it is payable even if the employee has not asked for it. That means it is the responsibility of the employer to pay it to an employee who has left the company within 30 days of his leaving the service. Similarly, the gratuity can be forfeited only for reasons of absolute misconduct involving moral turpitudes and for the loss caused to the company property by the employee. Non repayment of loan will not come under it. Therefore, from an employer side I will not recommend payment of loan to any employee on the faith that we can recover it from the gratuity!
Regards,
Madhu.T.K
From India, Kannur
4250If your company is willing to give you loan considering your long service with it, you may get. But the loan will not be on any lien on gratuity payable because, the amount of gratuity payable to an employee can not be attached. In other words, if you fail to repay the loan, the company can not adjust the gratuity against the loan pending from you. As per Gratuity Act, it is payable even if the employee has not asked for it. That means it is the responsibility of the employer to pay it to an employee who has left the company within 30 days of his leaving the service. Similarly, the gratuity can be forfeited only for reasons of absolute misconduct involving moral turpitudes and for the loss caused to the company property by the employee. Non repayment of loan will not come under it. Therefore, from an employer side I will not recommend payment of loan to any employee on the faith that we can recover it from the gratuity!
Regards,
Madhu.T.K
From India, Kannur
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc