Dear Sathya,
We dont have any right to deduct the amount of salary advance from the P.F and as well as Gratuity. Because it is the part of Statutory compliances. We can recover from full and final settlement through (Leave encashment or Hold salary or Eligible reimbursement ) settlement. Other than that we cant do anything. One more thing is that 40k is the salary advance or what? When ever employee is quit their job ask them to full fill Exit forms which consist of reason for leaving any advance payment details. Ask him to get the signature from the immediate Manager. That will help us to functioning the process very well. Its my advice.
From India, Madras
We dont have any right to deduct the amount of salary advance from the P.F and as well as Gratuity. Because it is the part of Statutory compliances. We can recover from full and final settlement through (Leave encashment or Hold salary or Eligible reimbursement ) settlement. Other than that we cant do anything. One more thing is that 40k is the salary advance or what? When ever employee is quit their job ask them to full fill Exit forms which consist of reason for leaving any advance payment details. Ask him to get the signature from the immediate Manager. That will help us to functioning the process very well. Its my advice.
From India, Madras
Dear, The legal provision is very clear that neither from PF dues nor from gratuity amount, the dues can be recovered. There is a way out to recover it from the gratuity amount. Take prereceipt for the total gratuity amont but actually pay the net amount after deduction. Before that take authorisation for deducting the due amount. In case of PF, take a cheque for the due amount from the employee and tie up with the PF office and his bank so that when the PF amount is deposited this amount is debited from his account and credited to you. This could be worked out and I have done it. Regards KK Nair
2
In the final settlement calculation sheet we can mention Gradutity , Leave encash ment amount in ADD part and what ever the amount or assert due from him/her value we mention in deduction part, So that final conclusion should be Earnings Suppose 1 L Means we can deduct the dues whatevr it is from his earnings and settle their balance as a Final settlement and move their PF documents Smoothly with out violating any.
Regards
Saro
From India, Madras
Regards
Saro
From India, Madras
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Employee cannot escape recovery of excess payment SC 01.11.2013.pdf
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