One of our employees has submitted his resignation letter and been relieved immediately after receiving his salary. The employee is entitled to Gratuity. Is it possible, as per the act, to recover those amounts from the Gratuity payable amount? Please advise on this issue.
Regards,
Janakiraman
From India, Chennai
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2Regards,
Janakiraman
From India, Chennai
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I hope any company pays a salary for the past worked month. At the first point, you pay for the worked period, am I correct? (If you have any contract bond, that case is different.)
PF & Gratuity - these are the amounts which an employee saves at the employer's behest (as per Statutory Gratuity, it will also be considered as social security savings). So, you have to pay all these to him as per Statutory norms. However, many companies still stop PF & Gratuity of employees with very silly reasons - the less knowledgeable ex-employees make rounds or else they come to your doorstep, but if any knowledgeable person or anyone with power can proceed against you legally. Finally, you cannot recover any amount from the employee's Gratuity legally (if, by any chance, any big legal case happens in front of the court of law and the court passes any sentence)... there are so many illegal moves which everyone knows.
From India, Hyderabad
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PF & Gratuity - these are the amounts which an employee saves at the employer's behest (as per Statutory Gratuity, it will also be considered as social security savings). So, you have to pay all these to him as per Statutory norms. However, many companies still stop PF & Gratuity of employees with very silly reasons - the less knowledgeable ex-employees make rounds or else they come to your doorstep, but if any knowledgeable person or anyone with power can proceed against you legally. Finally, you cannot recover any amount from the employee's Gratuity legally (if, by any chance, any big legal case happens in front of the court of law and the court passes any sentence)... there are so many illegal moves which everyone knows.
From India, Hyderabad
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No, gratuity cannot be forfeited or withheld for reasons like this. No amount due from the employee shall be deducted from the gratuity amount. Gratuity can be forfeited only for very specific reasons as mentioned in section 4(6)(b) of the Payment of Gratuity Act, which shall include instances of an employee being dismissed for offenses involving moral turpitude or causing damage to the company by his riotous behavior. Non-payment of notice pay is not a major misconduct as per the law is concerned.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Dear above discussed persons this discussion we have to look in to very broader way if Mr Janakiraman gives us more information according to the above discussions we can come to a better conclusion..
From India, Hyderabad
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From India, Hyderabad
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Legally, as said by Mr Madhu notice pay cannot be recovered from gratuity payable as per POG Act. Varughese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Recovery of notice period amount can’t be done from the amount of Gratuity,company may face legal issues from the side of employee. Rajesh
From India, Barddhaman
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From India, Barddhaman
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PF and gratuity are the savings of the workman, so the employer can't hold this. Recently, the PF Commissioner assured that if an employer does not sign the PF withdrawal form, the workman can submit it without the employer's signature.
Finally, the employer can't hold the gratuity and PF amount.
Vk. Sood
From India, Ludhiana
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Finally, the employer can't hold the gratuity and PF amount.
Vk. Sood
From India, Ludhiana
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Yes, I agree with all of you, i.e., no one can make any recovery from employees' PF or Gratuity accounts once they have left. However, there are many other smooth ways you can consider. For instance, you can ask the departing employees to either pay their notice period and follow the company's exit process to collect all their final dues, or you may withhold their final settlement. It is advisable to inform them about this verbally.
Additionally, you can seek assistance from your legal department.
Regards, Sndeepkumar Kale. Asst. Manager (HR)
From India, Pune
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Additionally, you can seek assistance from your legal department.
Regards, Sndeepkumar Kale. Asst. Manager (HR)
From India, Pune
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No we cant deduct NP from gratuity as deduction can be made only after gross misconduct or misappropriation Regards Shyamal
From India, Mumbai
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From India, Mumbai
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An employer can recover Notice Pay or any advance paid to employees, or any other legal dues from the Gratuity amount payable to an employee. Here, the employer is not reducing or making the employee forfeit the Gratuity. The employer just makes an accounting entry. As long as there is a clause for Notice pay, the employee is liable to make payment. This is the money payable by the employee. He completes five years, and gratuity is payable to him. The employer has a right to deduct the dues payable by the employee from the gratuity.
From India, Chennai
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From India, Chennai
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Notice pay recovery certificate.doc
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